Fresh details from Universal Orlando about its upcoming Epic Universe theme park are the latest flex in the long-running competition for tourism dollars by entertainment titans, including standing champion Walt Disney World, which industry analysts predict could soon strike back.
Universal’s Epic announcements confirm big news such as the park’s lands being themed to Nintendo, “How to Train Your Dragon,” Harry Potter and Universal’s classic monsters. And they unveil finer details such as restaurant names and the speed of the racing roller coaster.
The batch of facts intensified the buzz about the park, set to open next year. And it has some watchers wondering if a Disney countermove is coming soon.
At least one expert thinks Universal’s expansion will prompt the long-awaited “fifth gate” – another Disney World theme park. Industry observers also say the gap between Orlando’s biggest park operators appears to be thinning.
“There’s an 800-pound gorilla in the room, but there’s also a 600-pound gorilla in the room. We’ve watched that gorilla grow from little gorilla to big gorilla,” said Martin Lewison, associate professor of business management at Farmingdale State College in New York.
“But it’s not necessarily a bad thing because there is research that shows that the concentration of all these parks in one place helps all of them,” said Lewison, who teaches courses in tourism, hospitality and attractions management.
Dennis Speigel, owner of International Theme Park Services, said Epic Universe is going to tip the scales more toward Universal.
“This is going to tilt the axis of the theme-park world, I believe, in Orlando. This park is going to perform at enormous numbers,” he said. Epic Universe will attract between 5 million and 6 million people in its first year, he estimated.
In 2019, the last full year before the coronavirus pandemic, Universal Studios Florida reportedly had 10.92 million visitors and Universal’s Islands of Adventure welcomed 10.38 million people, according to the annual AECOM/TEA attendance report.
Magic Kingdom was the most popular theme park in the world with 20.96 million visitors in 2019, according to the report.
Checking out hotels
While the Epic’s flashy rides and eye-catching design draw attention, its three new hotels play key roles in Universal’s future as company officials think they will lead to more extended stays.
“The addition of Epic Universe will almost double the size of Universal Orlando,” Mark Woodbury, CEO of Universal Parks & Experiences said in a video released Tuesday. “This gives us the opportunity to bring people to Universal Orlando for an entire week of the most incredible experiences they can imagine.”
The 500-room Universal Helios Grand Hotel is “inside” the theme park, Universal said, with an exclusive entrance to the theme park for guests. Nearby will be Stella Nova and Terra Luna resorts, with 750 rooms apiece, which are scheduled to open Jan. 21 and Feb. 25, respectively.
Universal did not share a precise opening date for the theme park, but officials have publicly said “by summer” of 2025.
“Disney was the master and the owner of the on-site hotels for decades,” Speigel said. “It keeps your visitors on-site, which builds per-capitas both at the admissions gates and internally in the food and beverage and merch and all retail.”
The three hotels, now under construction, will bring Universal’s on-property count to 11. Its most recent additions are Surfside Inn and Dockside Inn, which opened in 2019 and 2020 as parts of the Endless Summer Resort on International Drive.
“It’s only been about 10 years since they [Universal] really started this effort, and how they’ve accelerated has been amazing,” Speigel said.
Universal will need to expand its workforce to staff the park and hotels. Those roles have been difficult to fill and traditionally low-paying in Orlando.
“Everybody’s suffering in the industry. So it is a factor that has to come into play,” Speigel said.
“I think you will see more lobbying in the future for the J-1 visas,” a government program for people living outside the U.S. allowing participation in study- and work-related exchange programs here, he said.
Having a hotel very close to the theme park is not a new concept but a growing one. When Magic Kingdom opened in 1971, Disney put the Contemporary Resort next door. A Legoland Florida hotel is adjacent to the theme park.
SeaWorld Orlando has filed permits to build two hotels, one with 250 rooms and one with more than 500 rooms. SeaWorld Parks & Entertainment CEO Marc Swanson told investors that he expects the company to open hotels in 2026.
There have been hotel projects adjacent to parks in the Six Flags and Cedar Fair chains, as well as at Hersheypark in Pennsylvania and Dollywood in Tennessee, Speigel said.
“If you’re an operator, you want to keep them as close to you as you can so they don’t get distracted,” he said.
Future stock
Speigel points to past milestones in Universal Orlando’s history that got it to this point. The launching pad was the introduction of Back to the Future: The Ride at Universal Studios theme park in 1991, followed by the debut of the Wizarding World of Harry Potter at Islands of Adventure in 2010, he said.
“We saw the largest jump in attendance and margins we’d seen in the industry [with Potter],” he said. “So there’s no question that this new park Epic Universe, in my mind, puts Universal on par, on level with Disney now.”
He expects Disney to speed up its development timetable now.
“You’re going to see a big announcement. … They’re going to add a fifth park,” Speigel predicted.
“I’ve heard rumors that it has been worked on for several years now. But I think the [Universal] announcement …. will be a catalyst for Disney to show their hand as well,” he said.
Walt Disney Co. officials have made no public mention of a so-called “fifth gate,” although the company has pledged to invest $60 billion over 10 years in its theme parks worldwide.
In April, Disney said it planned to invest $17 billion in Walt Disney World projects, and that figure included the Epcot transformation projects and Tiana’s Bayou Adventure, a Magic Kingdom water ride set to open in December.
Beyond Disney and Universal, there is room for more tourism players, including SeaWorld Orlando, Speigel said. The corporate name change, announced Tuesday, from SeaWorld Entertainment Inc. to United Parks & Resorts is a step in its evolution, he said. The theme park itself keeps the SeaWorld Orlando name.
“I think they have to find their common ground in a couple of areas, in the product area and in the pricing area,” Speigel said. “People are still price-conscious who come to our industry, and SeaWorld could build their volume by giving a strong price value relationship to the guest.”
Central Florida visitors don’t necessarily sequester themselves at one theme park company during their stay, Lewison said.
“I think there’s definitely a synergy there even though the parks may not mention it explicitly,” he said.
There are options because there’s money to be made in Orlando.
“Disney has been making unbelievable profits from their theme parks for 50 years, you know, with ups and downs. So it’s a huge market. … We know the demand is inelastic, because they keep raising prices, and they keep getting record attendance,” Lewison said.
“The law of business is if there are profits, then there are going to be competitors who try to compete those profits away,” he said. “It’s a growing market, which is unusual, because it’s a mature market. So, yes, there will be more and more competition for hotel rooms … but there already was.
“It’s amazing. Where else can you build a giant hotel and expect to be profitable than Orlando, Florida?”
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The waiting game
When Epic debuts, it will be Orlando’s first new full-blown theme park in this millennium. Disney’s Animal Kingdom opened in 1998, followed by Universal’s Islands of Adventure in 1999.
“For theme park fans, this is the first new theme park, at least around here, in the internet age where we have instant connection with other fans like ourselves,” said Alicia Stella, who follows Epic for her website Orlando Park Stop.
“People can share in real time on social media about construction and their thoughts and rumors. And there’s no end to the discussion,” she said.
Tuesday’s newly released details could spread interest wider, Stella said.
“It’s also a day when the non-theme park fans, the regular general public, start to see what we’ve been experiencing and start to climb on board the journey here,” she said.
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