Walt Disney Co.
The new ship, inspired by the Wish, Disney's largest vessel, is a collaborative effort with the Oriental Land Company, operator of Tokyo Disneyland.
This initiative is part of a 10-year, $60 billion expansion of Disney's theme parks and cruise business, reported Reuters.
Currently, Disney operates five cruise ships and plans to introduce three more, including one launching from Singapore in 2025.
The Tokyo-based ship will accommodate up to 4,000 passengers and is projected to generate approximately 100 billion yen ($621.77 million) in annual revenue within a few years of its debut.
"To set sail from Japan will make Disney vacations at sea more accessible to Japanese guests, who we know are some of our biggest fans," said Thomas Mazloum, president of Disney Signature Experiences, according to Reuters.
The cruise industry is experiencing a resurgence post-COVID-19, with passenger numbers expected to reach 34.7 million this year, a 17% increase from 2019.
Josh D'Amaro, chairman of Disney Experiences, noted that the new ships would bring themed entertainment to regions distant from Disney's theme parks, such as Melbourne and Vancouver.
Disney aims to cater to families, a segment previously underserved in the cruise market.
Disney's experiences business, encompassing parks and cruises, contributed over one-third of the company's revenue in the March quarter and nearly 60% of its operating income.
The company's stock dipped in May after CFO Hugh Johnston warned of a "global moderation" in travel for the fiscal third quarter and other challenges, including higher wages and pre-opening costs for new cruise ships and the Lookout Cay vacation island.
The expansion of Disney's cruise capacity could mitigate any decline in its domestic theme park business.
Disney stock has gained more than 10% in the last 12 months. Investors can gain exposure to the stock via Monarch Blue Chips Core Index ETF
Price Action: DIS shares are trading lower by 1.11% at $96.29 at last check Tuesday.
