Recently we read in the main newspapers about the resolution of a litigation between Disney and the Central Florida Tourism Oversight Districtapproved by Governor Ron DeSantis' representatives. This resolution represents a historic milestone for the future of Orlando and its economic development.

This agreement, which brings to an end almost two years of intense legal disputes, as well as much confusion in the social media sponsored by both parties, promises to significantly transform the region's tourism and real estate scene. With a projected investment of US$ 17 billion over the next 10 to 20 yearsDisney plans not only to expand its attractions and infrastructure, but also to implement real estate initiatives focused on improving urban infrastructure.

Orlando, which is already recognized as the leading vacation destination, is about to further solidify its position thanks to this ambitious development plan. This agreement will not only benefit the local economy through the creation of thousands of jobs and new businesses, but will also have a profound impact on the real estate market, especially in the segment of Vacation Homeswhich has grown exponentially with the increase in tourism.

In the current context, where tourism plays a key role in Orlando's economy, this massive investment by Disney can be seen as a catalyst for a new cycle of growth and development that is expected to last 20 years.

The creation of new attractions and the expansion of existing ones will not only attract millions of new visitors, but will also create a vibrant and prosperous environment for investors and residents.

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Context of the Conflict

The dispute began when Disney publicly opposed Florida's "Parents' Rights in Education Act", popularly known as the "Don't Say Gay" law, which restricts discussion of sexual orientation and gender identity in elementary schools.

In response, Ron DeSantis' administration dissolved the former Reedy Creek Improvement District, which managed Walt Disney World's infrastructure, and created the Central Florida Tourism Oversight District, appointing allies to oversee it. This action led to a series of lawsuits between Disney and the new board of directors.

In my opinion, in addition to fights and a lot of noise on social media, this conflict had a negative impact on tourism, causing supporters of both sides to boycott Orlando or Disney in order to position themselves in favor of one side or the other, but in the end, it was all bad for the city and the news that this cycle has ended and an agreement has been reached that provides for substantial investments in the city is certainly very good news, not just for us residents, but for investors in general.

Terms of Agreement

  1. Investment of US$ 17 BillionThe agreement provides for an investment of approximately US$ 17 billion for Disney over the next 10 to 20 years. This money will go towards the development of new attractions, expansion of existing ones, infrastructure improvements and affordable housing initiatives. Disney has committed to using local companies for at least 50% of the work.
  2. Development of New Attractions and Expansion:
    • Fifth Theme ParkOne of the most anticipated aspects of the agreement is the possible creation of a fifth theme park, which will significantly increase the capacity to attract tourists. This new park should include innovative themed areas and new attractions.
    • Expansion of Existing ParksIn addition to the new park, there will be expansions at existing parks such as Magic Kingdom, Epcot, Hollywood Studios and Animal Kingdom, with the introduction of new themed areas and attractions.
  3. Infrastructure and Facilities:
    • Hotels and ResortsThe plan includes building new hotels and expanding existing ones, increasing accommodation capacity. Today Disney has approximately 40,000 rooms and with the new agreement it could reach 53,000 rooms.
    • Restaurants and Retail AreasMore than 200 new restaurants and shops in and around the theme parks, providing more eating and shopping options for visitors.
  4. Affordable Homes and Community Development:
    • Accessible Real Estate ProjectsDisney is committed to financing affordable housing projects for its workers, ensuring that they can live close to their workplaces. This includes the construction of several price-controlled residential units.
    • Urban infrastructure improvementsThe agreement also includes significant investments in urban infrastructure improvements, such as roads, public transportation and public services, to support the increase in tourism and population.

Approval and Implementation

The approval of the agreement was a fundamental step towards putting an end to the litigation between Disney and the Florida government. From now on, Disney and the Central Florida Tourism Oversight District will work together to implement these plans. The collaboration between the parties promises to create an environment of economic growth and sustainable development, benefiting both residents and tourists, but above all it puts an end to a social dynamic that has been unsustainable with public campaigns by both parties to influence public opinion.

This agreement is seen as a significant victory for both parties, as it allows Disney to continue expanding its operations and contributing to the local economy, while the Florida government ensures that the interests of the state and residents are protected and promoted.

For The Florida Lounge and our clients, this is a strategic time to explore new investment opportunities in the Orlando real estate market. With the expansion of attractions and the improvement of infrastructure, properties in the region should appreciate significantly, especially in the Vacation Homes segment.

The agreement between Disney and the Florida government provides for significant investment in the creation and expansion of attractions within Disney's theme parks in Orlando. This investment not only aims to increase the number of visitors, but also to improve the experience of tourists and residents.

  1. Fifth Theme Park:
    • Description: Disney is considering building a new theme park, the fifth in the Walt Disney World complex. This park will include new themed areas and innovative attractions, which have not yet been detailed, but are expected to be high-tech and highly immersive.
    • ImpactThe new park is expected to significantly increase the flow of tourists, attracting millions of new visitors every year. It is estimated that this park alone could generate thousands of direct and indirect jobs, from construction to daily operation.
    • Costs and benefits: The development cost for a new theme park can easily exceed US$ 3 billionBut the return on investment will come from tickets, merchandising and consumption inside the park.
  2. Expansion of Existing Parks:
    • Magic KingdomNew themed areas and attractions will be added, expanding the Fantasyland and Tomorrowland zones, as well as introducing new attractions based on popular Disney franchises. In all the interviews given by the current president of Disney, Bob Iger, he always mentions the strength of the intellectual properties (characters) that are part of the Disney collection.
    • Epcot: It will continue its transformation with new attractions and themed pavilions, focusing on cultural and educational experiences, as well as high-tech attractions.
    • Hollywood StudiosAdditional expansions in areas such as Star Wars: Galaxy's Edge and Toy Story Land, as well as new attractions from recent Disney and Pixar films.
    • Animal KingdomIntroduction of new themed areas focused on specific biomes and more night-time attractions to extend visitors' stay.

Infrastructure and Facilities

Investment in infrastructure is crucial to support the increased flow of tourists and improve the visitor experience. Disney plans to invest heavily in new facilities and the expansion of existing ones.

  1. Hotels and Resorts:
    • New Hotels: It is estimated that at least five new hotels will be built, increasing hotel capacity by around 13,000 roomsThe number of new hotels has risen from 40,000 rooms to 53,000 rooms. These new hotels range from luxury resorts to more affordable accommodation, ensuring that all types of tourists can find suitable options.
    • Expansion of Existing HotelsRenovation and expansion of existing hotels, including the addition of new amenities such as spas, convention centers and entertainment areas.
  2. Restaurants and Retail Areas:
    • New Restaurants: Adding more than 200 new restaurants throughout the Disney complex, offering a wide range of dining options, from fast food to haute cuisine restaurants.
    • Retail areasExpansion of shopping areas, including new themed stores and shopping malls, increasing consumption opportunities for visitors. 

Affordable Homes and Community Development

Recognizing the need to support its workers and the local community, Disney is also investing in affordable housing projects and community development.

  1. Affordable Housing Projects:
    • Residential unitsConstruction of hundreds of affordable housing units, mainly for Disney employees and their families. These units will be located close to the Disney complex, making it easier for workers to commute.
  2. Urban infrastructure improvements:
    • Public transportationSignificant investment in improvements to the public transport system, including new bus routes and possibly an expansion of light rail services.
    • Road infrastructureImprovements to roads and road infrastructure to support the increase in tourist traffic. This includes building new roads and widening existing ones to avoid congestion.
    • Public ServicesDisney also plans to collaborate with the local government to improve public services, such as water supply, sewage and energy, to support the expected growth in population and tourism.

Increased Tourist Flow

The agreement between Disney and the Florida government, which provides for a massive investment of US$ 17 billion, promises to have a significant impact on Orlando's tourism. This investment is designed to develop new attractions, expand existing ones and improve infrastructure, which in turn should attract even more visitors.

  1. Visitor Projection:
    • New Theme ParkThe creation of a fifth theme park is one of the most eagerly awaited initiatives. It is estimated that this new park, together with the expansions of the existing parks, could increase the tourist flow by approximately 10 million annual visitors over the next 10 years. This increase will be driven by new themed attractions that will attract both repeat visitors and new tourists.
    • Events and Festivals: Disney plans to introduce more seasonal events and festivals, which will increase appeal throughout the year and not just on traditional vacations. These events are designed to attract visitors during the lower seasons, balancing the tourist flow.
  2. Support Infrastructure:
    • Hotels and ResortsThe construction of new hotels and the expansion of existing ones will increase accommodation capacity, allowing more visitors to stay within the Disney complex. With the addition of around 13,000 new roomsThe total guest capacity will be significantly increased.
    • Transport ImprovementsInvestment in transportation infrastructure, including new bus systems and possible rail expansions, will make it easier for visitors to access the parks and reduce congestion, improving the overall experience for tourists.

Job Creation

The impact on job creation is one of the most positive and widely anticipated aspects of the agreement. Disney is one of the largest employers in Florida, and this expansion should further consolidate that position.

  1. Construction jobs:
    • Construction of Attractions and HotelsThe construction of new attractions, hotels and other facilities will create a significant demand for construction workers. It is estimated that tens of thousands of jobs will be created during the construction phase, ranging from engineers and architects to construction workers and local suppliers.
  2. Permanent jobs:
    • Operation of Parks and HotelsAfter completion of construction, it is expected that around 50,000 permanent jobs. These jobs will include roles in hospitality, entertainment, maintenance, food services, retail sales and management. Disney is known for offering competitive benefits and growth opportunities for its employees, which will also help attract and retain talent in the region.
    • Impact on Local CommunitiesJob creation will not be limited to Disney alone. Local businesses, including restaurants, stores and transportation services, will also have to hire more employees to meet the growing demand from tourists and new residents who will move to the area in search of job opportunities.

Economic Impact

The economic impact of the agreement between Disney and the Florida government will be profound and far-reaching, benefiting not only the company and its visitors, but also the local and state economy.

  1. Increased Tourist Revenue:
    • Visitor spendingWith the increase in tourist flows, a significant increase in visitor spending is expected. It is estimated that the average spend per visitor in the Orlando region is around US$ 2,000including accommodation, meals, tickets and shopping. With millions of new visitors a year, tourist revenue is expected to increase by several billion dollars a year.
  2. Fiscal Impact:
    • TaxesIncreased economic activity will generate more tax revenue for the state and local municipalities through sales taxes, hotel occupancy taxes and other tourism-related fees. This additional revenue can be reinvested in public infrastructure, education and social services, benefiting the community as a whole.
    • Community InvestmentPart of the agreement includes Disney's commitment to finance affordable housing projects and urban infrastructure improvements. These direct investments will help improve the quality of life of local residents, creating a positive cycle of sustainable economic development.
  3. Small Business Development:
    • Opportunities for Local CompaniesThe expansion of the parks and the construction of new facilities will create opportunities for local companies to supply Disney with products and services. This includes everything from construction and maintenance to food and merchandise supply.
    • Retail and Services GrowthWith more tourists and new residents, there will be a greater demand for retail services, restaurants, entertainment and other amenities, encouraging the growth of small businesses in the Orlando area.

In short, the agreement between Disney and the Florida government promises not only to strengthen Orlando's position as a tourist destination, but also to accelerate economic growth in a substantial and lasting way. This investment will generate thousands of jobs, increase tourism revenue and bring significant infrastructure improvements, benefiting visitors and residents alike.

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    Property valuation

    1. Proximity to New Attractions:
      • Attractions and Hotels: The creation of new Disney attractions and hotels will increase demand for real estate near the Disney complex. Properties located near the theme parks traditionally appreciate in value due to their convenience and tourist appeal.
      • Impact on valuationWith the introduction of the fifth theme park and the expansion of existing parks, real estate appreciation of around 10% to 20% is expected over the next five years in the areas surrounding the new developments. This appreciation is driven by the expected increase in tourist flow and the improvement in local infrastructure.
    2. Vacation Homes segment:
      • Growing DemandVacation home properties will particularly benefit. With the increase in the number of tourists, the demand for short-term rentals will grow substantially, making Vacation Homes an attractive investment.
      • Return on InvestmentInvestors can expect a significant return on their rental properties, with higher occupancy rates and premium rental rates during the high tourist season. The appreciation of these properties may exceed the average of the traditional residential real estate market. 

    Investment Opportunities

    1. Development of new properties:
      • Residential and commercial projects: The need for new residential and commercial developments will increase. Real estate developers will have opportunities to build new condominiums, apartment complexes and shopping centers to meet the growing demand.
      • Government incentivesThe local government can offer tax incentives and subsidies to stimulate real estate development in the areas of interest, creating a favorable environment for new investments.
    2. Expansion of Infrastructure and Services:
      • Support ServicesInvestments in infrastructure, such as roads, public transportation and public services, will be essential to support the expected growth. Companies providing these services will find an expanding market.
      • Commercial Real Estate: The need for new restaurants, stores and support services in and around the parks creates lucrative opportunities for investors in commercial real estate. Disney plans to develop more than 200 new commercial establishments, significantly increasing the retail market.

    Infrastructure Development

    1. Improvements to road infrastructure:
      • New Roads and Road WideningTo accommodate the increase in tourist traffic, the plan includes building new roads and widening existing ones. These improvements will reduce congestion and facilitate access to the theme parks and nearby residential areas.
      • Positive Impact on MobilityImproved urban mobility will attract more investors and residents, increasing demand for property in areas well served by transportation infrastructure.
    2. Expanding Public Transportation:
      • New Bus Lines and Rail ExpansionThe investment includes the expansion of bus lines and the possible introduction of light rail transportation, better connecting residential areas with the main tourist attractions.
      • Benefits for the Local PopulationThe improvement in public transportation will not only benefit tourists, but also the local population, making their daily commute easier and promoting the development of new residential and commercial areas.
    3. Public Services and Urban Infrastructure:
      • Improvements in Public ServicesIncludes investments in water supply, sewage and energy supply to support population growth and increased tourist activity.
      • Sustainable DevelopmentDisney and the local government are committed to promoting sustainable development, with environmental preservation initiatives and affordable housing projects for local workers.

    In other words, the agreement between Disney and the Florida government will not only boost tourism, but will also have a transformative impact on Orlando's real estate market. With property appreciation, new investment opportunities and significant infrastructure improvements, Orlando is positioned for a future of sustainable growth and prosperity.

    The agreement between Disney and the Central Florida Tourism Oversight District, approved by Governor Ron DeSantis' representatives, represents a transformative milestone for Orlando. With an investment of US$ 17 billion projected over the next 10 to 20 years, this plan not only promises to consolidate Orlando as one of the world's leading tourist destinations, but will also have profound implications for the region's real estate market.

    Multidimensional benefits

    1. Sustainable Economic Growth:
      • TourismThe creation of new attractions and the expansion of existing ones are expected to significantly increase the flow of tourists. The new theme park and the expansions of existing parks will attract millions of new visitors, generating considerable revenue for the local economy.
      • EmploymentThe construction and operation of the new facilities will create tens of thousands of jobs, both temporary and permanent, boosting the local economy and improving residents' quality of life.
    2. Impact on the Real Estate Market:
      • Property valuation: Proximity to new attractions and infrastructure improvements will result in significant property appreciation in the region. Residential and commercial properties close to the Disney developments will benefit enormously from this appreciation.
      • Investment Opportunities: The increase in tourist flows and the improvement of infrastructure create a favorable environment for investors. Vacation home properties, in particular, have significant return potential due to the growing demand for short-term rentals.
    3. Infrastructure Development:
      • Road and Public Transport ImprovementsThe plan includes significant investments in improving roads and expanding public transportation, facilitating access and mobility for tourists and residents alike.
      • Affordable Housing and Public ServicesCommitment to the development of affordable housing and improvements in public services will directly benefit the local community, promoting sustainable and inclusive urban development.

     

    Opportunities and challenges

    While the agreement brings enormous opportunities, it also presents challenges that need to be managed carefully. Efficient management of resources, coordination with local authorities and attention to community needs will be crucial to ensure that the benefits are widely distributed and that development is sustainable in the long term.

    For The Florida Lounge, this is a strategic time to help our clients maximize their investment opportunities and realize their dreams of owning property in Florida. With our commitment to truth, education and experience, we are prepared to offer the best support and guidance in an expanding market.

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