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Biggest Foe of Expanded Gambling in Florida: Disney World,
Which Has Made Preventing Destination Casinos a Top Priority

By Jason Garcia and Kathleen Haughney, The Orlando Sentinel, Fla.McClatchy-Tribune Regional News

Nov. 06, 2011--The biggest challenger standing between Miami and casinos is a mouse.

Walt Disney World, the giant resort near Orlando whose four theme parks draw more than 45 million visitors a year, has made preventing "destination" casinos a top priority. And few, if any, businesses carry as much weight in Florida as Disney, which employs more than 60,000 workers, generates nearly $600 million a year in tax revenue -- and doled out more than $2 million to political candidates and causes during the past election cycle.

Some analysts say Disney -- and, by extension, Orlando's entire tourism industry -- has good reason to be wary of casinos. Though adult-oriented resorts in South Florida are unlikely to appeal to Disney's core audience of families with young children, they could siphon away travelers in narrower segments that are also important to the resort, from South Americans to conventions to weddings.

"Disney has lots of little pockets or niches that they're really good at getting market share in. And it adds up," said Duncan Dickson, a professor at the University of Central Florida's Rosen College of Hospitality Management. "Disney doesn't want another Las Vegas anywhere close to them. Who needs the competition?"

Disney has always opposed efforts to expand gambling.

The Walt Disney Co., one of the most brand-protective companies on the planet, does not want to jeopardize its kid-friendly reputation by any association whatsoever with casinos and the taboo images they often conjure. The company's cruise line is the only major operator to sail ships without onboard casinos, which are typically one of the biggest generators of on-board spending.

"We've studied this issue carefully and remain opposed for many reasons," said Disney spokesman Mike Griffin, "including the fact that it is inconsistent with Florida's brand as a family-friendly destination and with the efforts we've long supported to diversify Florida's economy through research, innovation and entrepreneurship."

The legislation to be considered in Tallahassee would authorize three "destination" casinos in Miami-Dade and Broward counties. Each would boast a luxury hotel, shops, restaurants, convention space and casinos with every major game, from blackjack to roulette and craps. Any company awarded a casino license would have to spend at least $2 billion building the facility.

Las Vegas Sands and Wynn Resorts, both based in Las Vegas, and Genting, a Malaysian-based resort developer, are among the companies expected to seek licenses. Genting has already spent more than $300 million to buy bay-front property in downtown Miami and has announced plans for a $3.8 billion resort.

All have promised they will create thousands of jobs in South Florida, making the deal attractive to lawmakers hoping to lower the state's 10.6 percent unemployment rate.

Analysts say anyone that invests that much capital to build a resort also will have to spend lavishly to market the property. At a minimum, that will force Disney to ramp up its own spending on advertising, eroding its profit margins.

"Anytime you've got to fight and compete with more marketing dollars, which you know these folks have in abundance, it makes Disney's job that much harder to battle against," said Vicki Johnson, a tourism-marketing expert in Orlando.

More specifically, casinos could prove attractive draws in key markets for Disney. Executives at Genting, for instance, have said they would market heavily in Latin America.

Latin America -- particularly Brazil, its biggest country -- has become one of Disney World's most valuable markets in recent years. This summer, even as overall attendance at the resort was about flat with a year ago, Disney officials said traffic from Brazil was up by a double-digit percentage.

Though Disney doesn't disclose exact attendance numbers, national data show that visitation from Brazil is up 27 percent to more than 833,000 so far this year. And though Miami is the most popular destination for South American travelers, Orlando is growing more rapidly.

Disney says its business from Brazil is predominantly family-leisure travel, the group least likely to be swayed by casinos. But some industry followers say lavish resorts, when combined with the boutique shopping already in Miami, might be enough to peel away some of that business, especially Brazilians with older children or none at all.

"All of a sudden, it really cuts into their [Disney's] South American markets," Johnson said.

Group meetings and conventions business is also a growing profit center for Disney, which has nearly 470,000 square feet of meeting space spread among its hotels. It also routinely picks up lucrative private parties and other business tied to shows using Orange County's massive, publicly owned convention center.

Finally, allowing casinos in South Florida could lead to pressure to build more in other parts of the state. Already, some hoteliers in Orlando -- led by Harris Rosen, owner of three major convention hotels -- have made rumblings about bringing casinos to Central Florida. And officials at Port Canaveral -- Disney Cruise Line's home port -- are interested in casinos, too.

"Once they get their foot in the door, what's next? Orange County is going to say, 'Well, if it's legal in Dade County, why isn't it legal here?' " said Dickson, the UCF professor.

Disney has worked to enlist broader business groups to fight the casino legislation, most notably the Florida Chamber of Commerce, even though more than half of the businesses represented on the chamber's board of directors say they are neutral on the issue.

And the opposition from Disney has put casino boosters on the defensive during the past few days.

"Florida's identity cannot be changed because one casino or two destination resorts open in Miami-Dade County," said state Rep. Erik Fresen, R-Miami, who is sponsoring the casino legislation in the Florida House of Representatives.

"Florida will always be the Sunshine State," he added. "The dominant trademark of Florida will always be Disney World. I don't think they have anything to worry about when it comes to that."

jrgarcia@tribune.com or 407-420-5414. khaughney@tribune.com or 850-224-6214.

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(c)2011 The Orlando Sentinel (Orlando, Fla.)

Visit The Orlando Sentinel (Orlando, Fla.) at www.OrlandoSentinel.com

Distributed by MCT Information Services



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