Showing posts with label walt disney company. Show all posts
Showing posts with label walt disney company. Show all posts

Friday, February 10, 2017

How Disney Major Announcement Will Change The Future of Disneyland Paris - Include FULL Press Release in English AND French Versions !


An important announcement was done on Friday by the Walt Disney Company. Here are the facts first and right after you have my take aout all this and what it means for DLP's future.

So, it was announced that Disney will increase its stake in Euro Disney to 85.7% from 76.7%. Disney is also offering to buy the rest of the company for €2 per share, bringing the potential value of the transaction to €356 million ($379 million).

Disney is acquiring a 9 percent stake in Euro Disney SCA from Alwaleed’s Kingdom Holding Co. for 2 euros ($2.13) a share, payable in Disney stock. Kingdom Holding will have a 1pc share of Euro Disney following the deal, which it said was worth $151m and was in line with its investment strategy and continued confidence in the Disney brand.

Disney is also offering 2 euros in cash per share to others shareholders willing to sell. That’s 67 percent more than Euro Disney’s closing price Thursday. Even more important, Disney said it will support Euro Disney’s recapitalization of as much as 1.5 billion euros to "address the parks financial needs.". That follows the 2014 rescue package, when the resort was pledged at least 1 billion euros over 10 years to add attractions and spruce up grounds.

The new plan “affords maximum flexibility to shareholders, addresses the group’s financial needs and reflects its ongoing support for the long-term success of Disneyland Paris,” Disney said.Disney said Friday that the operation's financial position has been "significantly and negatively impacted" by the November 2015 terror attacks in Paris and what it described as "challenging business conditions" in Europe. The number of visitors to DLP dropped to 13.4 million in 2016, from 14.8 million the previous year. Hotel occupancy rates and average spending per rooms have also declined.

Okay, that's for the basics of what was announced, now here is the details with the press release below both in its english and french versions:

English version:

The Walt Disney Company Announces an Increase in its Interest in Euro Disney; its Intention to Launch a Tender Offer for all Remaining Euro Disney Shares and a mandatory buy-out if the 95% threshold is reached; and a Proposal to Restore Disneyland Paris' Financial Position

The Walt Disney Company ("Disney") announces the acquisition of 90% of Kingdom Holding Company's ("Kingdom") interest in Euro Disney S.C.A. ("Euro Disney"), representing 9% of Euro Disney's outstanding shares.

The proposed transaction will increase Disney's interest in Euro Disney to 85.7% from 76.7%.

The price for the transaction is €2.00 per share and will be paid in shares of Disney common stock.

Disney also announces its intention to make a cash tender offer for all remaining outstanding shares of Euro Disney at a price of €2.00 per share, representing a 67% premium to Euro Disney's trading price at its close on February 9, 2017.

Subsequent to the completion of the tender offer, Disney is committed to support a recapitalization of up to €1.5 billion for the Euro Disney group of companies ("Group") to address the Group's financial needs.

PARIS, Feb. 10, 2017 -- Today The Walt Disney Company ("Disney") announced that it will acquire through one of its subsidiaries 90% of Kingdom Holding Company's ("Kingdom") shares in Euro Disney S.C.A. ("Euro Disney") at a price of €2.00 per share, increasing its interest in Euro Disney to 85.7%. Disney also announced that this subsidiary intends to make a cash tender offer for all remaining outstanding shares of Euro Disney at a price of €2.00 per share, representing a 67% premium to the trading price at the close on February 9, 2017. Moreover, Disney has informed Euro Disney that it is committed to support a recapitalization of up to €1.5 billion for the Euro Disney group of companies ("Group") to enable the Group to continue implementation of improvements to Disneyland® Paris, reduce debt and increase liquidity.

As previously reported by Euro Disney, despite the recapitalization announced in 2014 that enabled the Group to make attraction and hotel improvements which have generated positive guest feedback and set the stage for the Resort's 25th Anniversary celebration this year, the Group's financial condition has been significantly and negatively impacted by the November 2015 events in Paris and the challenging business conditions that continued through 2016 in France and throughout Europe. The comprehensive proposal announced by Disney affords maximum flexibility to shareholders, addresses the Group's financial needs and reflects its ongoing support for the long-term success of Disneyland® Paris.

Euro Disney's Supervisory Board has expressed its support of these developments, and its interest in evaluating this proposal. The Board has asked its audit committee, which is comprised solely of independent members, to make a recommendation for the appointment of an independent expert to deliver a fairness opinion in connection with the proposed tender offer.

Transaction Details:

The acquisition of Euro Disney shares will occur through an off-market block trade and is scheduled to close on February 15, 2017. The purchase price of €2.00 per share will be paid in shares of Disney common stock, based on Disney's closing price on the New York Stock Exchange on February 14, 2017 and the Euro-U.S. exchange rate published by the European Central Bank on the same day. The seller will be Kingdom 5-KR-11, Ltd, a subsidiary of Kingdom, and the purchaser will be EDL Holding Company, LLC ("EDL"), a wholly-owned subsidiary of Disney through which Disney historically has held its interest in Euro Disney. As a result of this transaction, Kingdom's ownership interest in Euro Disney will decrease from 10.0% to 1.0%.

In connection with this transaction, EDL intends to make a voluntary tender offer for all of the Euro Disney shares not already owned by Disney subsidiaries at a cash price of €2.00 per share. If EDL and the other Disney subsidiaries acting in concert with it collectively own at least 95% of Euro Disney's common shares following completion of the voluntary tender offer, EDL will promptly proceed with a mandatory buy out and delisting of the Euro Disney shares from Euronext Paris. An indicative timetable is attached to this press release.

Disney has also informed Euro Disney that it is committed to support a recapitalization of up to €1.5 billion as described below:

If Euro Disney remains a listed company, Disney would expect the recapitalization to take the form of a subscription by the applicable Disney subsidiaries of their pro-rata share of a €1.23 billion rights offering by Euro Disney together with a backstop of (and at the same price as) the rights offering by one or more of such subsidiaries, ensuring that Euro Disney will be able to raise the full amount contemplated by the rights offering, combined with a direct €270 million cash investment in equity at the level of Euro Disney Associés S.C.A., the main operating subsidiary of Euro Disney, and contribution of the proceeds of the rights offering by Euro Disney to Euro Disney Associés S.C.A. to maintain the ownership level of Euro Disney Associés S.C.A. by Euro Disney at its current 82%. Proceeds would be used to enable the Group to continue implementation of improvements to Disneyland Paris, repay most or all of the Group's indebtedness and increase liquidity. The rights offering described above would be subject to the prior approval of Euro Disney's shareholders at a shareholders' meeting.

If Euro Disney is delisted, Disney would expect the recapitalization to be in the same amount and to also consist entirely of equity contributions to the Group, but the allocation of such contributions between Euro Disney and its subsidiaries could vary compared to what is described above. The proceeds would be used for the same purposes as described above.

The proposed tender offer will be subject to review and clearance by the Autorité des marchés financiers of a Tender Offer Prospectus (Note d'information). In addition, any rights offering will be subject to review and clearance by the Autorité des marchés financiers of an Offering Prospectus (Note d'opération).

Version Française:

The Walt Disney Company annonce une augmentation de sa participation dans Euro Disney ; son intention de lancer une offre publique d'achat sur la totalité des actions Euro Disney restant en circulation suivie d'un retrait obligatoire si le seuil de 95% est atteint ; et une proposition visant au rétablissement de la situation financière de Disneyland Paris Français

The Walt Disney Company (« Disney ») annonce l'acquisition de 90 % de la participation de Kingdom Holding Company (« Kingdom ») dans Euro Disney S.C.A. (« Euro Disney »), représentant 9 % des actions Euro Disney en circulation.

L'opération envisagée portera la participation de Disney dans Euro Disney de 76,7% à 85,7%.

Dans le cadre de l'opération envisagée, le prix par action sera de 2,00 € et sera payé en actions ordinaires de Disney.

Disney annonce également son intention de lancer une offre publique d'achat en espèces pour la totalité des actions Euro Disney restant en circulation à un prix de 2,00 euros par action, représentant une prime de [67] % par rapport au cours de bourse de l'action Euro Disney à la clôture du marché le [9] février 2017.

A l'issue de la réalisation de l'offre publique d'achat, Disney s'est engagé à soutenir une recapitalisation des sociétés du groupe Euro Disney (le « Groupe ») pour un montant allant jusqu'à 1,5 milliard d'euros afin de répondre aux besoins financiers du Groupe.

PARIS, le 10 février 2017 -- The Walt Disney Company (« Disney ») a annoncé ce jour le projet d'acquisition, via l'une de ses filiales, de 90 % de la participation de Kingdom Holding Company (« Kingdom ») dans Euro Disney S.C.A. (« Euro Disney ») au prix de 2,00 euros par action, portant sa participation dans Euro Disney à 85,7 %. Disney a également annoncé que cette filiale a l'intention de lancer une offre publique d'achat en espèces pour la totalité des actions Euro Disney restant en circulation au prix de 2,00 € par action, représentant une prime de [67] % par rapport au cours de bourse de l'action Euro Disney à la clôture du marché le [9] février 2017. Disney a également informé Euro Disney de son engagement à soutenir une recapitalisation des sociétés du groupe Euro Disney (le « Groupe ») pour un montant allant jusqu'à 1,5 milliard d'euros afin de permettre au Groupe de poursuivre la mise en œuvre des améliorations au sein de Disneyland® Paris, de réduire son endettement et d'améliorer sa trésorerie.

Comme indiqué précédemment par Euro Disney, en dépit de la recapitalisation annoncée en 2014, qui a permis au Groupe d'améliorer ses attractions et ses hôtels à la satisfaction de ses clients et de préparer la célébration du 25ème anniversaire du Parc cette année, la situation financière du Groupe a été affectée de façon significative par les événements de novembre 2015 à Paris ainsi que par les conditions économiques difficiles qui ont perduré en France et dans le reste de l'Europe durant l'année 2016. Le projet global annoncé par Disney confère aux actionnaires toute flexibilité, répond aux besoins financiers du Groupe et atteste de son soutien continu au succès à long terme de Disneyland® Paris.

Le Conseil de surveillance d'Euro Disney a exprimé son soutien aux projets exposés ci-dessus et son intention d'analyser les termes de ce projet. [Le Conseil de surveillance a demandé à son comité d'audit, qui est composé exclusivement de membres indépendants de lui faire une recommandation concernant la nomination d'un expert indépendant chargé de remettre une attestation d'équité en lien avec l'offre publique d'achat projetée.]

Les détails de l'opération proposée:

L'acquisition des actions Euro Disney sera réalisée par l'acquisition hors-marché d'un bloc de titres, dont la réalisation est prévue le 15 février 2017. Le prix d'achat de 2,00 euros par action sera payé en actions ordinaires Disney, sur la base du cours de bourse de l'action Disney à la clôture du New York Stock Exchange le 14 février 2017 et du taux de change euro / dollar publié par la Banque Centrale Européenne le même jour. Le vendeur sera Kingdom 5-KR-11, Ltd, une filiale de Kingdom, et l'acheteur EDL Holding Company, LLC (« EDL »), une filiale détenue à 100 % par Disney, par l'intermédiaire de laquelle Disney détient traditionnellement sa participation dans Euro Disney. A l'issue de cette opération, la participation de Kingdom dans Euro Disney passera de 10,0 % à 1,0 %.

En lien avec cette opération, EDL a l'intention de lancer une offre publique d'achat en espèces pour la totalité des actions Euro Disney non encore détenues par des filiales de Disney, à un prix de 2,00 euros par action. Si EDL et les autres filiales de Disney agissant de concert venaient à détenir collectivement au moins 95 % des actions d'Euro Disney à l'issue de la réalisation de l'offre publique d'achat, EDL procèdera immédiatement à un retrait obligatoire et à la radiation des actions Euro Disney de la cote d'Euronext Paris. Un calendrier indicatif est annexé au présent communiqué de presse.

Disney a également informé Euro Disney de son engagement à soutenir une recapitalisation pour un montant allant jusqu'à 1,5 milliard d'euros, tel que décrite ci-dessous.

Dans l'hypothèse où les actions d'Euro Disney restent cotées sur Euronext Paris, Disney prévoit que la recapitalisation prenne la forme d'une souscription par les filiales de Disney concernées, au prorata de leurs participations respectives au capital d'Euro Disney, à une augmentation de capital d'Euro Disney avec droits préférentiels de souscription d'un montant de 1,23 milliard d'euros, accompagnée d'un mécanisme dit de « backstop » (au même prix que l'augmentation de capital) par une ou plusieurs de ces filiales, garantissant la faculté d'Euro Disney de lever la totalité des fonds prévus au titre de cette augmentation de capital. A cela s'ajouterait un investissement direct en espèces de 270 millions d'euros au niveau d'Euro Disney Associés S.C.A., la principale filiale d'exploitation d'Euro Disney, et un apport par Euro Disney du produit de l'augmentation de capital à Euro Disney Associés S.C.A. afin de permettre à Euro Disney de maintenir son niveau de participation dans Disney Associés S.C.A. à son niveau actuel, à savoir 82%. Le produit de l'augmentation de capital serait utilisé afin de permettre au Groupe de poursuivre la mise en œuvre des améliorations au sein de Disneyland Paris, de rembourser la plupart voire la totalité de l'endettement financier du Groupe et d'améliorer sa trésorerie. L'augmentation de capital décrite ci-dessus serait soumise à l'approbation des actionnaires d'Euro Disney réunis en assemblée générale.

Dans l'hypothèse d'une radiation des actions Euro Disney de la cote d'Euronext Paris, Disney envisage d'effectuer la recapitalisation pour un montant identique et également sous la forme d'apports au Groupe en capital. Cependant, la répartition de ces apports entre Euro Disney et ses filiales pourrait varier par rapport à ce qui est décrit ci-dessus. Le produit de la recapitalisation serait utilisé à des fins identiques à celles décrites ci-dessus.

L'offre publique d'achat projetée sera soumise à l'établissement d'une Note d'information et à la déclaration de conformité de l'Autorité des marchés financiers. En outre, toute augmentation de capital avec droit préférentiel de souscription devra faire l'objet d'une Note d'opération qui serait soumise au visa de l'Autorité des marchés financiers si la société est cotée lors de la réalisation de cette augmentation de capital.

D&M Take on all this: Just in case you didn't get it yet, the Walt Disney Company try to have as much shares as possible of EuroDisney, the goal being to own EuroDisney in full and to get out of this unbelievable financial mess in which DLP is since 20 years. Once they'll have 95% of the shares EuroDisney will be delist from Euronext Paris.

Basically the WDC try to have the hands totally free ( legally and financially speaking ) to do what they want as they have with the Disney parks in the U.S. Then there is the recapitalization of up to €1.5 billion which at first view is a good news as DLP desperately needs money to build new attractions, as we know.

So, is it all good news? Not so fast: DLP has in plans the building and opening of at least one new hotel ( if not two ) as well as an expansion of Disney Village - DLP Shopping, dining and nighttime entertainment area - and chances are that a big part of this money will be spent in these projects.

But what about new rides and the WDS expansion? This surely will come as they are not more stupid than we are, they know perfectly that the WDS are the most urgent problem to resolve. Yes, a Star Wars land and a Marvel land are envisioned for the WDS and surely will be built, and they also have plans for an Avatar land. In addition, plenty of backstage offices have been moved ( or will be ) to the new building being built at Val d'Europe. And one of the reason they remove them is to have more land available for future expansions.

So, yes, Disneyland Paris is on good tracks, better that it has never been until now and the future should look bright, though we may have to wait a few more years to see the expansion and the new attractions that we're hoping for. But this will come at a price, because you don't think that the WDC will pour in EuroDisney billions of euros without finding a way to get them back, do you? Expect the price of entrance tickets to the parks to rise like they did in the U.S, as well as for the hotels rooms, and more. Let's just hope that Disneyland Paris won't become a destination only for some rich "happy few".

Version Française:

Au cas où vous ne l'avez pas encore compris la Walt Disney Company essaye d'avoir autant d'actions que possible d'EuroDisney, l'objectif étant de posséder EuroDisney dans son intégralité et de sortir de cet incroyable désastre financier dans lequel EuroDisney est depuis 20 ans. Une fois qu'ils auront 95% des actions, EuroDisney sera retiré d'Euronext Paris.

Basiquement, la WDC essaie d'avoir les mains totalement libres ( légalement et financièrement parlant)  pour pouvoir faire ce qu'ils veulent comme ils font dans les parcs Disney aux U.S. Ensuite, il y a la recapitalisation de 1,5 milliard d'euros qui est à première vue une bonne nouvelle car DLP a désespérément besoin d'argent pour construire de nouvelles attractions, comme nous le savons.

Alors, cette annonce est-elle une bonne nouvelle? Pas si vite: DLP a dans ses plans la construction et l'ouverture d'au moins un nouvel hôtel ( si ce n'est deux ) ainsi que l'expansion du Disney Village et il y a fort à parier qu'une grande partie de cet argent sera consacré à ces projets.

Et au sujet de nouvelles attractions et de l'expansion des WDS? Ce sera sûrement pour bientôt et comme ils ne sont pas plus stupides que nous ne le sommes, ils savent parfaitement que les WDS sont le problème le plus urgent à résoudre. Oui, un Star Wars land et un Marvel land sont envisagés pour les WDS et ils ont également des plans pour un Avatar land. Egalement, de nombreux bureaux backstage ont été déplacés ( ou le seront ) dans le nouveau bâtiment en cours de construction à Val d'Europe. Et la raison pour laquelle ils les transfèrent est d'avoir plus d'espace disponible backstage pour une future expansion.

Donc, oui, Disneyland Paris est sur de bons rails, meilleurs qu'ils ne l'ont jamais été jusqu'à présent et l'avenir devrait être radieux, quoique nous pourrions avoir à attendre encore quelques années pour voir l'expansion et les nouvelles attractions ardemment souhaitées. Mais cela aura un cout, parce que vous ne pensez tout de mème pas que la WDC va verser dans EuroDisney des milliards d'euros sans trouver un moyen de les récupérer, n'est-ce pas? Il faut donc s'attendre à ce que le prix des billets d'entrée pour les parcs augmentent comme ils l'ont fait aux États-Unis, ainsi que ceux des chambres d'hôtels, et dans d'autres secteurs. Espérons juste que Disneyland Paris ne deviendra pas une destination uniquement pour quelques riches "happy few".

Picture: copyright Disney

Monday, August 27, 2012

What a DLP Buyout by the WDC Could Mean for DLP Future



The news of a possible buyout of Disneyland Paris by the Walt Disney Company revealed last week by TIME had instantly a tremendous effect both on Disney theme park fans and at Paris stock exchange where the EDL stock went up 12% in one day. Why the WDC will do this buyout and what DLP fans can expect out of it, that's what we're going to talk about today, and all this with new great aerial pictures of DLP shot recently by Junior, DLP fan and plane pilot. Note that these pictures showing DLP from above are here only to illustrate this article and have no relation with the DLP future projects that i will talk about below, although some of the pics bring precious informations on the land available for future rides.

First, you must note that although this news of a DLP buyout hadn't been confirmed by the WDC ( no surprise ) it was revealed by TIME magazine which is a media almost as reliable as the New York Times can be. What i mean is that TIME don't usually disclose this kind of important infos without having check and double check before with their sources, and for this reason we can take this info for something more than a simple rumor, even unconfirmed officially. That said, they're certainly not happy by now at the WDC as the rise of the stock price is precisely what they probably wanted to avoid. It's understandable, after all, if you have the intention to buy large quantities of stocks you prefer to buy them at low price, and now chances are that the WDC will wait a bit before doing this buyout or they even might deny all the buyout operation in the hope that the stock price will go down.

We'll see... but what's interesting is also WHY they want to do this buyout. Well, you see, right now the WDC only have 40% of EDL shares. In addition to this the park is also paying royalties to the WDC. For many years the park didn't had enough money to pay the royalties and also had to borrow money to the WDC to face DLP financial difficulties. After 20 years of up and down and a financial situation always critical even if the results were recently positive, someone at the WDC probably finally realized that the way the DLP financial structure was set-up in the 1990's was not working anymore. And also that it didn't had any sense to get royalties from DLP on one hand if you have to give back to DLP more money on the other hand. It's probably at that point that someone came in and said "Hey, why don't we do a buyout so we will own the park just like we do in the U.S and we'll be able to resolve for once and for all DLP problem by doing what we did at DCA?". Okay, they probably didn't say it exactly like this but i'm ready to bet that the tremendous success of the new California Adventure helped the WDC executives to finally understood that "if you build it, they will come" - the famous quote coming from Kevin Costner 1989 movie "Field of Dreams".

That's right: if you build it, and if you build it RIGHT, they will come, and there is NO other way to resolve DLP - and specially WDS - problems than a massive "Marshall Plan" with new rides and lands as soon as possible. I think they've understood this at the WDC and i think they've decided that if they have to do it, to spent a lot of money, then "let's become the owner".



Now, let's have a look to what the WDC might decide to build at DLP and the WDS in the future IF they do this buyout, and why. All what is below is pure speculation - although based on reluable sources and infos - as they might have different plans that we don't know - and they certainly have some - but, "as there is always a logic in life" some of the choices below are probably right.

For Disneyland Paris Magic Kingdom:

Star Tours 2 - Star Wars Land: This one should be added quite quickly. Why? Because DLP is the last park who have not done the Star Tours 2 upgrade and because the back of DLP Discoveryland needs it now that Honey.. and Captain EO are gone. A Star Wars land, even a small one will surely be a winner at a reasonable cost. And there is no way that the WDC will leave Star Tours in its first version for ten more years.

Pirates of Caribbean with Jack Sparrow Audio-Animatronics: Jack Sparrow AAs also should arrive quickly. Why? If the WDC wants to add quickly some little things new at DLP Magic Kingdom without spending too much while they spend the biggest part of the money on the WDS this kind of little upgrades in DLP classic rides can be the best way to do it. Also, if they have to add the Jack Sparrow AAs they must do it soon, while the POTC movies are still in the collective subconscious, specially if there is no new POTC movies released in the future.

Phantom Manor Upgrade: Why? Exactly for the same reasons listed above for the POTC upgrade. It will not cost a lot, and it can bring something new at one of DLP most beloved attraction. Though, in both cases these additions will be difficult to use for DLP marketing dept as it won't be new rides, and this might be the main reason why it might be cancelled - as a matter of fact it is the reason why these upgrades haven't been done yet ( apart the no-money-available reason ).



Little Mermaid: Will Fantasyland long awaited dark ride finally come to DLP? May be, may be not. The good point is that two versions of the ride will have previously been built and the R&D costs probably pay off. Another good point for Little Mermaid: it's a ride for everyone but also and specially for young girls, which don't happen that often. I will put a 50-50 chances on this one.

Indiana Jones Adventure: Thanks God, WDI Imagineers kept the land at DLP Adventureland to build it and DLP fans are awaiting the ride since 15 years. I've said it and i say it again, bringing IJA at DLP Adventureland would be the best choice that DLP can make, and probably the only attraction for DLP MK which will have the same tremendous success that Space Mountain had when it opened in 1995. Yes, but DLP most urgent problem to resolve is not DLP Magic Kingdom but the Walt Disney Studios and this is where most of the money - and new rides - will go. So, let's put a 50-50 on this one too.



For the Walt Disney Studios:

Ratatouille Kitchen Calamity: Whatever this buyout or not happen this is the only ride guaranteed at 100% for the WDS. As we know it will open in 2014 and as you can see on the aerial picture below the works have began and the ride building structure appeared recently. You'll note also how near from the back of Frontierland the Ratatouille ride will be. Of course, a Ratatouille restaurant is include in this new mini land.

Toy Story Mania: Almost officially announced recently by DLP CEO Philippe Gas in an interview when he said that a new interactive ride based on Toy Story is in the plans for the future. I'm not personally a big fan of TSM but as they will not build it for me but for the hundred of thousand of kids who love it wherever it is built, we might not escape to have Toy Story Mania at the WDS. As you can see also on the picture below they have the land available in front of Toy Story Playland. Chances are high on this one.



Avatar Attraction: Yes, all the insider news that i have are saying that an Avatar ride is envisioned for the WDS! This one is a big news that you didn't hear before and there is a lot of good reasons why it will be build. First, three Avatar sequels are coming in 2014, 2015 and 2016. Avatar was the most successful movie of all time and considering that James Cameron will of course direct the three new movies you don't need to be a genius to know that the sequels will be successful. An Avatar attraction will be the best thing that can happen for the marketing dept and, hopefully, for DLP fans. The other reason is something you don't know, as Bob Iger apparently asked the Imagineering to develop Avatar rides ( for other parks than Animal Kingdom ) "and sooner will be better than later". Why? Because Iger paid a lot of money the Avatar license and he wants a return on its investment as soon as possible. Sure, they could keep an Avatar land for DLP third theme park but this one will not open before 2023 and obviously the best would be to build an Avatar attraction at the WDS while the movie is still in the collective subconscious and not forgotten. Let's add that Avatar is before everything a movie, so an Avatar ride would fit well in a park ( supposedly ) dedicated to movies. For all these reasons, and except if the WDC is changing its plans and decide to keep it for the third park, i think we can bet a lot on this one.

Avengers ride - Marvel land: One year ago DLP CEO Philippe Gas announced clearly in another interview that Marvel super-heroes will come to DLPR ...in the third park. Since this statement a rumor keep saying that a Marvel land is in the plans for the WDS, and indeed they could build a Marvel land in the back of the WDS where they have plenty of land available as you can see on the second picture above. Will they do it? Probably. The next Avengers movie won't be released before 2015 which leave plenty of time to WDI to develop a great E-Ticket ride and also a Marvel land could be extremely successful for the WDS. Again, we must not forget that the biggest problem to be resolved at DLP are the WDS. They must fix this park for once and for all and there is no other way to do it than to put as much money as they did for DCA. Still, they could keep the idea of a Marvel land for the third park but, again, it won't open before 2023 in eleven years from now, almost an eternity in terms of hype. So, if the WDC wants to surf on the Marvel hype the best is to do it now. "Now", here, means in the next five years so don't expect a Marvel ride at the WDS before 2016 if not a bit later. But you can place your bets on this one too. Not to mention that a strong Avatar E-Ticket AND a big Avengers E-Ticket or a Marvel land, in addition to the upcoming Ratatouille and TSM rides might be exactly what the WDS needs to be at last a real full day theme park, the one we are wishing since the start.



Soarin' Over the World: We talked about it recently in a D&M article and the room to build Soarin' at the WDS is still available, between Cinémagique and Stitch Live. Will they build it? I'll put a 50-50 on this one. Not that i don't want it, i love Soarin' and i think they should build it, but they might use the room for something else...like an Avatar ride, for instance. Note that all this area and up to the Rock and Roller coaster should also have a big placemaking, and here too, sooner will be better than later.

Walt Disney Studios Hotel: Another project that DLP have in its plans - and since quite a while - is to build a big hotel which will face the back of the WDS. And i'm not talking here about the other hotel project which would be located in front of the Newport Bay hote, on the other side of the big avenue. This WDS Hotel project is a different one and you probably never heard about it before. The project was a bit forgotten but if Disney invest a lot of money in this buyout they might be tempted to build new hotels like this one to bring more cash in in another way than only rising the price of the parks entrance tickets - because you can be sure that the parks entrance prices will rise quickly if the WDC becomes the owner and invest a lot of money to fix DLP problems. Hey, that's the price we have to pay to get great new rides, right?

Finally, I don't mention here others projects like the Villages Nature which are already on the way for a 2016 opening and Disney Village shops changes that will happen anyway! Let's wish to DLP a great big beautiful tomorrow!

Aerial pictures: copyright Junior of DCP Forum, whom i thanks a lot!

Friday, August 24, 2012

Breaking News: Walt Disney Company Considers Buyout Disneyland Paris



If this is confirmed it might be the big news that all DLP fans are waiting for: According to TIME magazine the Walt Disney Company is considering a possible buyout of Disneyland Paris. Currently the WDC owns "only" 40% of Euro Disney, and among "the remaining shares 10% is owned by Saudi Prince al-Waleed bin Talal, and the rest is held by individual and institutional investors". Sources close to the WDC told TIME that "serious discussions have been taking place internally about buying out the stock it doesn’t currently own".

Always according to TIME "Acquiring the entire French company would be the first step in a comprehensive turnaround strategy that would enable Disney to benefit far more substantially from the popular success of the park". "Disney said in a statement that “we’re encouraged by the resort’s continued financial resilience and remain deeply committed to the future growth and long-term success of this invaluable asset to the Walt Disney Co.” ...but didn’t made any official comment on the buyout possibility "which TIME’s sources say have been under discussion for some time. Based on Euro Disney’s stock price, which has long been depressed, the market value of the 23.4 million shares of the French company that Disney doesn’t own is about $120 million. However, Disney would certainly have to pay a premium over the market price".

TIME note that "It’s not certain that Disney will decide to make a bid for the company, but the timing for such a move is favorable, since Disneyland Paris is currently on track to pay down about 500 million euros in debt over the next six years, or about one quarter of the remainder. This would put it on a more sustainable path to profitability. Thanks to management’s tight financial controls and higher spending per visitor, the resort is now finally making an operating profit and its cash flow is healthier".

And what does all this means for DLP fans? Well, it means that "a buyout would be followed by increased investment in the resort aimed at paying down the debt more quickly and increasing the number of attractions".

I've been saying since a long time that DLP needed a "Marshall plan" and may be it's finally coming now, although in a different way than i had expected. If the WDC really do this buyout it might resolve not only DLP debt problem but also, as they will be totally in charge of DLP parks just like they are at Disneyland Anaheim or WDW, that they will try to resolve DLP problem for once and for all and the example of California Adventure just prove recently that when they want to do it, they can do it, so you can expect new attractions for sure.

Let's cross our fingers that the news will be confirmed, but considering that it's coming from TIME, a reliable magazine, and that "there is never smoke without fire" this one might be the one you were all waiting for.

Text excerpts coming from TIME full article HERE

Saturday, November 26, 2011

Disney backs out of National Harbor Project

For the second time, Disney backs out from a project in Virginia, the first time was in the 1990's when they decided to give up the Disney's America theme park in Prince William County after many in the community objected.

And today Maryland news announced that Disney decided they backs out of the "National Harbor" project and canceled plans to build a 500-room resort hotel at National Harbor, dealing a blow to an ambitious project that is seen as an integral part of the economic future of Prince George’s County. More details about this:

"Disney had plans for a huge resort hotel at National Harbor, and even bought the land for the project back in 2009. It's a prime spot up on a hill that overlooks the rest of the development. It also has a view of the Potomac and even the Washington Monument.

But now, Disney says the timing "isn't right to proceed with another new project of this scale."

"We remain focused on new Disney experiences currently in the pipeline, which include a new cruise ship, a massive expansion of Fantasyland at Walt Disney World ... our expansion of Hong Kong Disneyland and our new Shanghai Disney Resort," Disney spokeswoman Kristin Nolt Wingard said in a statement.

National Harbor developer Jon Peterson says the decision is disappointing, and he will look to buy the land back so it can be used for something else.

Despite the disappointment, he says there are still plans to break ground over the next year on a big Tanger Outlet center and a new mixed use apartment complex.

Prince George's County officials are also dismayed by the news.

"The Baker administration is disappointed, but it wont stop us from continuing to aggressively pursue other development opportunities," says Scott Peterson, spokesperson for County Executive Rushern Baker.

The county will use the new development fund introduced this year to help bring other projects to the county, Peterson says".


Want to know more about this Disney project that will never exist? Then jump to Werner's article on Mice Age HERE.

Text: copyright Maryland News

Friday, October 7, 2011

Bob Iger Will Step Down as Disney CEO in 2015



That's a breaking news, and it's announced by the Wall Street Journal, a reliable source:

Disney CEO Robert Iger to Step Down as CEO in 2015

Walt Disney Co. said Chief Executive Robert Iger will step down as CEO in 2015.

Mr. Iger, 60 years old, will add the additional title of chairman of the board in March 2012, and will remain executive chairman until June 2016, at which time he is to retire from Disney at the age of 65.

The company said a successor had not been chosen. But Mr. Iger for several years has been grooming a group of potential heirs, moving senior managers between jobs to broaden their experience and to help assess which among them has the right combination of skills for the top job.

Disney's current chairman, John Pepper, is to step down at the company's annual meeting in March 2012. Mr. Iger's current contract was to expire in January 2013. Under the new contract, he is to receive an annual base salary of $2.5 million. The target bonus is set at $12 million during the years he has both titles, contingent on the company's operating performance and share price. Once he is executive chairman, his salary is to remain the same, while his bonus target is to be $6 million".

You can read the whole WSJ article HERE.

However, Disney’s also did a press release today which indicates that Iger might stay until 2016: "The Walt Disney Company Board of Directors announced today it has agreed to extend Robert A. Iger’s contract through June 2016 as part of the Company’s ongoing succession planning".

Here is Disney’s full press release:

BURBANK, Calif., October 7, 2011 – The Walt Disney Company (NYSE: DIS) Board of Directors announced today it has agreed to extend Robert A. Iger’s contract through June 2016 as part of the Company’s ongoing succession planning.

Under the new agreement, effective Oct. 1, Iger will assume the role of chairman in addition to chief executive officer following Chairman John E. Pepper’s retirement from the board at Disney’s 2012 annual shareholder meeting in March. Until then, Iger will remain president and chief executive officer.

Iger will hold the positions of chairman and chief executive officer through March 31, 2015, at which time a new CEO would be named; Iger will thereafter serve as executive chairman for 15 months through June 30, 2016. Iger’s current contract was set to expire on Jan. 31, 2013.

The Disney board took action at this time to secure the benefit of Iger’s leadership through 2016, provide for an effective, seamless succession and management transition and a continuity of the company’s corporate strategy to create long-term value for shareholders.

As provided in the company’s corporate governance guidelines, the board will also select an independent lead director when Iger assumes the role of Chair immediately following the meeting in March.

“As one of the most iconic brands and preeminent companies in the world, The Walt Disney Company requires a leader with the proven ability to drive creative and financial success in a dynamic world. For more than six years, Bob Iger has proven he has that ability at the highest level,” said Mr. Pepper. “The Board is delighted that the company has been able to secure the longer-term continuation of Bob’s unique blend of experience and leadership skills. His ability to bring together the many parts of Disney’s business against a clear and proven strategy, while instilling a culture of innovation, collaboration and discipline, will continue to serve the long-term interests of shareholders.”

Pepper added: “It is for these reasons – continuing the strategic direction and growth of the company while ensuring a smooth transition process to the next generation of leadership – the Board has determined that Bob should assume the additional role of Chairman.”

Iger said: “No CEO could have a better counselor than John — his impeccable integrity, vast experience, and knowledge and appreciation of Disney have been invaluable. I want to thank him for his many contributions, and his support of our people and our strategy including two of the company’s most significant acquisitions in recent years – Pixar and Marvel.”

“I’m privileged and grateful to lead The Walt Disney Company and our talented, dedicated team at this exciting time,” Iger added. “I’m committed to increasing long-term value for shareholders and am confident we will continue to do so through the successful execution of our core strategic priorities: the creation of high quality, branded content and experiences, the use of technology, and creating growth in numerous and exciting international markets.”

Since being named president and chief executive on September 30th, 2005, Iger, 60, has led the Company to record operating results while positioning Disney for the future in the global, dynamic multi-media industry. Disney’s total shareholder return since October 1, 2005 is five times higher than that of the S&P 500.

During Iger’s leadership tenure, The Walt Disney Company has been recognized as one of “America’s Most Admired Companies” by Fortune magazine (2009, 2010, 2011); one of the “World’s Most Respected Companies” by Barron’s (2009, 2010); and one of the “Best Places to Launch a Career” by BusinessWeek magazine (2006-2010).

As part of the agreement, Iger’s annual base salary will be $2.5 million. Iger is not receiving any up front equity award in connection with signing the new agreement. His annual bonus award will be calculated based on the Company’s performance, including its operating income, return on invested capital, earnings per share and after-tax free cash flow. He will also be entitled to an annual long-term equity incentive award of options and restricted stock units, the ultimate value of which will be entirely dependent on the Company’s future financial performance.

Text: Copyright Wall Street Journal or Disney

Disney In India - part Three



We've seen recently that Disney was undeniably interested by India, all the question is: by what? Is India the next destination for a Disney Magic Kingdom? Will Disney invest in "Kingdom of Dreams"? Or something else? Today, we had news from the "something else" option as Business Standard revealed that Disney acquires all of Indiagames in a $80-100 M deal. And Indiagames is a video games company which means that Disney try to reinforce his position in this activity.

From Business Standard: "In what could be the biggest deal so far in India’s online gaming sector, The Walt Disney Company has acquired all the equity in UTV’s Indiagames for an estimated $80-100 million (Rs 390-490 crore), said industry sources. Indiagames is a leading developer and publisher of mobile and online games.

Earlier this year, Walt Disney had announced the acquisition of UTV Software Communications for Rs 2,000 crore. However, UTV had only 58 per cent stake in Indiagames. Another 42 per cent was held by its founder and promoter, Vishal Gondal, and investors such as Cisco Systems, Adobe and others.
Repeated attempts to get in touch with UTV Software Communications and Indiagames failed. Vishal Gondal, chief executive officer of Indiagames, could not be reached over phone. However, sources close to the development confirmed the stake sale to Business Standard. “Walt Disney had acquired the other 42 per cent from the investors of Indiagames and Vishal Gondal,” said a senior official.

Indiagames, founded in 1999, is one of the earliest Indian companies in the mobile and online gaming segment... Indigames has a market share of around 50 per cent, say experts. Earlier this year, when Walt Disney announced it was taking over UTV Software, it was already a majority shareholder, with 20,497,994 equity shares, accounting for a 50.44 per cent stake.

Before Walt Disney bought UTV Software, there were reports suggesting Gondal and the other investors were in talks with UTV to purchase stake. It was also reported that they were trying to raise funds for doing so from both a private equity consortium and strategic investors".

Don't think thats the end of Disney deal with India, i'm pretty sure there is many more to come...

Full Business Standard article available HERE.

text: copyright Business Standard

Wednesday, October 28, 2009

Shanghaî Disneyland : Official announcement expected anytime soon !



Fresh (and good) news today as it seems that the official announcement of Shanghaî Disneyland is expected anytime soon. First, a Chinese newspaper, the Securities Times, reported that "the Walt Disney Company’s planned theme park in Shanghaî has been approved by government regulators. The report said the Shanghaî Disneyland project plan was passed by a government body earlier this month.

Citing unnamed sources, the newspaper revealed that "Currently, it is going through the final administrative process, with a formal announcement likely to be made to the public this week".

Also today, Reuters press agency said that a Shanghaî government source familiar with the situation told them that "Beijing has approved the project. Now it's up to Shanghaî and Disney to work out the plan and make this thing happen". Of course, both spokespeople from Disney and the Shanghaî government said they had nothing to announce at this time. Disney spokeswoman Leslie Goodman even declared "No deal has been agreed to, no project has been approved".

BUT anticipation is riding high that good news on Disney will be timed to coincide with Barack Obama's visit to China from November 15 to 18. If the deal is done, Obame's first visit to China would be indeed a perfect timing to announce officially the Shanghaî Disneyland deal.

Under a plan agreed upon by Disney and the Shanghaî government in January, Disney would own a 43 percent equity stake in the new theme park and a local government-owned joint venture holding company would own 57 percent. The plan calls for a large theme park and hotel complex to open in 2013.

The project is expected to cost 3.585 billion USD. The theme park would be located in Chuansha A08-03 lots, close to the subway and the planned Olympic Park.

From Reuters and Examiner.com

Wednesday, July 1, 2009

Hong Kong Disneyland Expansion Plan: What happened to "Glacier Bay" ?

Image hébergée par servimg.com

Last Tuesday the WDC announced officially the awaited expansion plan for Hong Kong Disneyland. The least i can say is that the announcement provoked mixed reactions. Most of you think that Grizzly Trail and Mystic Manor looks "interesting" but it seems that almost everybody - including me - think that Toy Story Playland doesn't have its place in a Magic Kingdom.

Now, let's think about all this objectively. As Honor Hunter of Blue Sky Disney explained it wisely yesterday we should not make our opinion only from the TSP rendering. I can admit that if we look at the rendering it may look not-that-great but i also trust WDI imagineers ability to create a good theming.

For me, and even if i think that Toy Story Playland will fit well at Paris WDS but that it's a mistake for HK Magic KIngdom, the problem was also somewhere else. When i looked at the expansion map, i could not stop thinking: "How the hell are they going to do the transition between the Toy Story Playland theme and Mystic point, the next land?". Imagineers can do miracles, okay, but in this case, frankly, i don't know how they will achieve a smooth, logical transition... And the more i was thinking about this, the more i had the feeling that something went wrong somewhere .

And it's at that point that i've received the email below from a HKDL super fan and Disney and more reader:

"Dear Alain,

it's never too late to save the HKDL's expansion project.

From today's HK newspaper, it tells that during the negotiation process, WDC required the HK Government to share all the costs of designing and planning, which includes the WDI's brainstorming for the rides and attractions. And HK Government refused to pay for that cost until finalized. From the same source, the abandon plan Glacier Bay was mentioned. The Government met Jay Rasulo in April, 2009, a month after HKDL fired WDI (if you remember those news), which means there is no one worked for the expansion plan at that time.


EDIT 7/3: In fact Disney NEVER intended to reduce production cost, they just wanted that the HKG could share the design cost! But HKG refused, and it seems that at that time Disney had already proposed 8 or 10 ideas to HKG. So Disney proposed the existing TSL plan after HKG banned Glacier Bay for the last time.

"Because the HK government did not willing to pay the designing cost and WDC needed to save those costs, WDS’s finished plan, the Toy Story Playland was given to the government when they asked WDC to give more ideas other than Glacier Bay.

More than that, according to the document of the plan, point 25 at page 5 (http://www.legco.gov.hk/yr08-09/engl...1-2090-1-e.pdf) it says that WDC will finalize the designing work for the expansion project after the agreement is approved by Legislative Council of Hong Kong at 8:30am 10th July 2009. (You may find that no timeline was given, because the deal has not made at this moment.) This means the designing work hasn't been finished yet. Everything still can be changed. Well, Even they won't cancel that Toy Story Land, at least, they can put more rides or a Toy Story Mania in that land.

So, buddy! Hong Kong Disneyland needs your help now! You can pass your idea to the following e-mail. That person below is responsible for the expansion project. More opinions they get, the higher possibility they will alter their plan. Please....HKDL needs your help! Toy Story land cannot locate in Magic Kingdom Style Park!! And we don’t want any more clones here!

BC Lo
Hong Kong Disneyland
B.C.Lo@disney.com

Tasia Filippatos
Walt Disney Parks and Resorts
Tasia.Filippatos@disney.com

Thanks!"


At first i thought: "Damn, the resistance is getting organized over there!" And then i saw these words: "Glacier Bay".

Glacier Bay? What is this? Was it this "snow-covered mountain" that rumors were talking about before the official announcement? So i asked this dear reader if he could send to me this HK newspaper article, just to try to understand what happened.

May be i'm not right in what will follow, so don't take my words for the truth, but here is my vision of this incredibly complicated HKDL case: The first thing we must keep in mind is that the Shanghaî Disneyland project is without any doubt the top priority project for the WDC. Alas, there is already a Disney theme park in China, and one which is not doing very well. Hong Kong do have a special status in China, but even if HK have its own government, it's part of China anyway and controlled by Beijing Central Government. The same Central Government who must give its final approval for Shanghaî Disneyland.

Also, there is no doubt that the opening of a huge Shanghaî Disneyland would be a problem for HKDL if nothing was done to improve the park. Everybody is aware of that, including the WDC and may be they had the feeling that the two cases were linked, in two words that they had to resolve the HKDL problem to help the SDL project to get its final approval. May be. Not sure, but i wouldn't be surprised if it happened like this, Chinese officials can be pretty good chess players...

Then, two years ago, the negotiation began, each camp trying to get the best deal. As i've said previously, Chinese can be incredibly tough negotiators and, although many different projects were proposed to them by the WDC, what happened finally is that the Chinese never give up. May be because they thought that HKDL problem was not their fault and they didn't have to pay for mistakes originally created by the WDC when Michael Eisner was still CEO...or more simply because they didn't want to put any more money.

Then in March, Jay Rasulo played what was probably his last card: the clash. The WDC announced that all imagineers working on HKDL expansion were removed and asked to come back to the U.S. Of course the Chinese officials didn't like it, and it was time for the WDC to calm down the situation and to do a proposal which will give to the Chinese the feeling that they won the game and even more important in China, that they save the face.

After all, the WDC is okay to create unique attractions for HKDL, to pay for them, and as they say in the very interesting PDF file: "To advance and protect the interest of HKD, Government has sought and secured TWDC’s assurance that “Grizzly Trail” and “Mystic Point” will be exclusive to HKD amongst Disney theme parks worldwide and “Toy Story Land” will be exclusive amongst Disney theme parks within the Asian region at the time of their respective opening."

Unique attractions? Let's have a closer look at that: Big Grizzly Mountain Coaster is a mix of the Expedition Everest track with a shape inspired by the one of Grizzly River Rapids mountain, all this with a Frontierland theme. And Mystic Manor have a DLP Phantom Manor re-designed look mixed apparently with a theme coming from the TDS TOT. But Mystic Manor will also have "a trackless ride system which enables vehicles to move “freely” about the attraction as the story unfolds", and i agree that the use of this technology instead of the usual omni-mover is really exciting. Always at Mystic point, the Adventurer's Club Restaurant where i wouldn't be surprised if we found there many artifacts coming from the beloved and now closed Adventurer's Club in Downtown Disney - a possibility which already infuriates WDW fans...

So, yes, objectively, Big Grizzly Mountain Coaster and Mystic Manor will really be HKDL exclusive attractions, but i can't stop thinking that the WDC has been smart and really well played its game with these two "exclusive" attractions.

And then there is Toy Story Playland. If the HK article is right, it seems that this third land was not part of the expansion project three months ago. Instead, another land called "Glacier Bay" was envisioned. According to the HK newspaper article Glacier Bay was replaced almost at the last minute by TSP when Chinese refused to pay the designing cost, and apparently didn't like too the Glacier Bay concept - the HKG thought it wasn't suitable for Hong Kong or Asia market. So, the WDC introduced Toy Story Playland as a replacement of Glacier Bay - after all TSP cost is around 30M $, a not-too-expensive cost for a new land with three attractions and the release of the three Toy Story movies next year will make a great publicity for the land and the Toy Story characters. Also, they can build TSP very quickly and have it ready for probably next year.

So, what happened to "Glacier Bay"? What would have been its theming and attractions? From what one of my HK correspondent have heard about it, "Glacier Bay theme had something like a scientists base... You would have take a train to go the laboratory, which goes from the outdoor area to an indoor air-controlled area to simulate the north pole. There will even be real snow flake in some scenes when the train pass by. The "U-shape" TSP half-pipe coaster was still there, but with a theming as skiing... The base of the mountain was very huge and it would have been the very first indoor land that Disney has ever built in a Disney theme park. It seems that one of the other reasons why the HK government banned this theme is that Ocean Park - Hong Kong first theme park - will use a similar theme with roller coaster, which was announced a year ago."



Mind you, there is also another HKDL project that HK government supposedly didn't like the theme, and it's the famous Pirates of Caribbean land. There, it's really a pity, as it would have been great. The Pirates of Caribbean attraction would have been more themed on the Jack Sparrow movies, with a kind of "Splash Mountain" fall at the end, simulating the "At World's end" scene when they search Jack Sparrow to the end of the world and drop from the huge waterfall. Also included in that land was a pirate-themed Haunted Mansion, and may be even a Fantasmic! show. No need to say that the cost of this land was of course very high.

Will this POTC land come later at HKDL? I wouldn't count on it. Or may be at Shanghaî Disneyland? When i will have the answer to these questions, i will let you know.

EDIT 7/2: Talking about Shanghaî Disneyland, Laughing Place.com reports that Bob Weis, executive vice president, creative, Walt Disney Imagineering, will be the creative lead for the in-development Shanghai Disneyland Resort, Weis will lead all creative and master planning activities for the Shanghai park, including hotels, retail, dining and entertainment development. Bob Weis is brilliant, so this is an excellent news for SDL.

Picture and Artwork: copyright Disney

Michael Crawford of Progress City USA wrote another interesting article about HKDL, you can read it HERE

Leave a comment or discuss this article on D&M english forum on Mice Chat

Monday, May 4, 2009

Why Disney will never build a theme park in Dubai



Yesterday we had a look on different destinations where Disney might open one day a new theme park. Today i will talk about a place where Disney will very probably NEVER build a theme park. And this place is Dubai.

Aaah, Dubai! Its beaches on the Persian Gulf... the green colour of the sea... the Atlantis hotel... sun and heat all year long... its skycrapers each one higher than the previous one... If we look at the brochure it looks like a Shangri-La where everything looks great and luxury...but i'm sorry to say that the reality is darker than the glossy image.

I will explain to you why Disney will never build a theme park in Dubai - and why Disney won't be the only one - but, first, you need to read this brilliantly written article by Johann Hari from british newspaper The Independent and know more about the reality of Dubai. The truth is not always pleasant, and in this case, it's the least we can say. I'll meet you at the end of the article, if you survive to its reading - you will understand what i mean!

The dark side of Dubai

Dubai was meant to be a Middle-Eastern Shangri-La, a glittering monument to Arab enterprise and western capitalism. But as hard times arrive in the city state that rose from the desert sands, an uglier story is emerging. Johann Hari reports


The wide, smiling face of Sheikh Mohammed – the absolute ruler of Dubai – beams down on his creation. His image is displayed on every other building, sandwiched between the more familiar corporate rictuses of Ronald McDonald and Colonel Sanders. This man has sold Dubai to the world as the city of One Thousand and One Arabian Lights, a Shangri-La in the Middle East insulated from the dust-storms blasting across the region. He dominates the Manhattan-manqué skyline, beaming out from row after row of glass pyramids and hotels smelted into the shape of piles of golden coins. And there he stands on the tallest building in the world – a skinny spike, jabbing farther into the sky than any other human construction in history.

But something has flickered in Sheikh Mohammed's smile. The ubiquitous cranes have paused on the skyline, as if stuck in time. There are countless buildings half-finished, seemingly abandoned. In the swankiest new constructions – like the vast Atlantis hotel, a giant pink castle built in 1,000 days for $1.5bn on its own artificial island – where rainwater is leaking from the ceilings and the tiles are falling off the roof. This Neverland was built on the Never-Never – and now the cracks are beginning to show. Suddenly it looks less like Manhattan in the sun than Iceland in the desert.

Once the manic burst of building has stopped and the whirlwind has slowed, the secrets of Dubai are slowly seeping out. This is a city built from nothing in just a few wild decades on credit and ecocide, suppression and slavery. Dubai is a living metal metaphor for the neo-liberal globalised world that may be crashing – at last – into history.

I. An Adult Disneyland

Karen Andrews can't speak. Every time she starts to tell her story, she puts her head down and crumples. She is slim and angular and has the faded radiance of the once-rich, even though her clothes are as creased as her forehead. I find her in the car park of one of Dubai's finest international hotels, where she is living, in her Range Rover. She has been sleeping here for months, thanks to the kindness of the Bangladeshi car park attendants who don't have the heart to move her on. This is not where she thought her Dubai dream would end.

Her story comes out in stutters, over four hours. At times, her old voice – witty and warm – breaks through. Karen came here from Canada when her husband was offered a job in the senior division of a famous multinational. "When he said Dubai, I said – if you want me to wear black and quit booze, baby, you've got the wrong girl. But he asked me to give it a chance. And I loved him."

All her worries melted when she touched down in Dubai in 2005. "It was an adult Disneyland, where Sheikh Mohammed is the mouse," she says. "Life was fantastic. You had these amazing big apartments, you had a whole army of your own staff, you pay no taxes at all. It seemed like everyone was a CEO. We were partying the whole time."

Her husband, Daniel, bought two properties. "We were drunk on Dubai," she says. But for the first time in his life, he was beginning to mismanage their finances. "We're not talking huge sums, but he was getting confused. It was so unlike Daniel, I was surprised. We got into a little bit of debt." After a year, she found out why: Daniel was diagnosed with a brain tumour.

One doctor told him he had a year to live; another said it was benign and he'd be okay. But the debts were growing. "Before I came here, I didn't know anything about Dubai law. I assumed if all these big companies come here, it must be pretty like Canada's or any other liberal democracy's," she says. Nobody told her there is no concept of bankruptcy. If you get into debt and you can't pay, you go to prison.

"When we realised that, I sat Daniel down and told him: listen, we need to get out of here. He knew he was guaranteed a pay-off when he resigned, so we said – right, let's take the pay-off, clear the debt, and go." So Daniel resigned – but he was given a lower pay-off than his contract suggested. The debt remained. As soon as you quit your job in Dubai, your employer has to inform your bank. If you have any outstanding debts that aren't covered by your savings, then all your accounts are frozen, and you are forbidden to leave the country.

"Suddenly our cards stopped working. We had nothing. We were thrown out of our apartment." Karen can't speak about what happened next for a long time; she is shaking.

Daniel was arrested and taken away on the day of their eviction. It was six days before she could talk to him. "He told me he was put in a cell with another debtor, a Sri Lankan guy who was only 27, who said he couldn't face the shame to his family. Daniel woke up and the boy had swallowed razor-blades. He banged for help, but nobody came, and the boy died in front of him."

Karen managed to beg from her friends for a few weeks, "but it was so humiliating. I've never lived like this. I worked in the fashion industry. I had my own shops. I've never..." She peters out.

Daniel was sentenced to six months' imprisonment at a trial he couldn't understand. It was in Arabic, and there was no translation. "Now I'm here illegally, too," Karen says I've got no money, nothing. I have to last nine months until he's out, somehow." Looking away, almost paralysed with embarrassment, she asks if I could buy her a meal.

She is not alone. All over the city, there are maxed-out expats sleeping secretly in the sand-dunes or the airport or in their cars.

"The thing you have to understand about Dubai is – nothing is what it seems," Karen says at last. "Nothing. This isn't a city, it's a con-job. They lure you in telling you it's one thing – a modern kind of place – but beneath the surface it's a medieval dictatorship."

II. Tumbleweed

Thirty years ago, almost all of contemporary Dubai was desert, inhabited only by cactuses and tumbleweed and scorpions. But downtown there are traces of the town that once was, buried amidst the metal and glass. In the dusty fort of the Dubai Museum, a sanitised version of this story is told.

In the mid-18th century, a small village was built here, in the lower Persian Gulf, where people would dive for pearls off the coast. It soon began to accumulate a cosmopolitan population washing up from Persia, the Indian subcontinent, and other Arab countries, all hoping to make their fortune. They named it after a local locust, the daba, who consumed everything before it. The town was soon seized by the gunships of the British Empire, who held it by the throat as late as 1971. As they scuttled away, Dubai decided to ally with the six surrounding states and make up the United Arab Emirates (UAE).

The British quit, exhausted, just as oil was being discovered, and the sheikhs who suddenly found themselves in charge faced a remarkable dilemma. They were largely illiterate nomads who spent their lives driving camels through the desert – yet now they had a vast pot of gold. What should they do with it?

Dubai only had a dribble of oil compared to neighbouring Abu Dhabi – so Sheikh Maktoum decided to use the revenues to build something that would last. Israel used to boast it made the desert bloom; Sheikh Maktoum resolved to make the desert boom. He would build a city to be a centre of tourism and financial services, sucking up cash and talent from across the globe. He invited the world to come tax-free – and they came in their millions, swamping the local population, who now make up just 5 per cent of Dubai. A city seemed to fall from the sky in just three decades, whole and complete and swelling. They fast-forwarded from the 18th century to the 21st in a single generation.

If you take the Big Bus Tour of Dubai – the passport to a pre-processed experience of every major city on earth – you are fed the propaganda-vision of how this happened. "Dubai's motto is 'Open doors, open minds'," the tour guide tells you in clipped tones, before depositing you at the souks to buy camel tea-cosies. "Here you are free. To purchase fabrics," he adds. As you pass each new monumental building, he tells you: "The World Trade Centre was built by His Highness..."

But this is a lie. The sheikh did not build this city. It was built by slaves. They are building it now.

III. Hidden in plain view

There are three different Dubais, all swirling around each other. There are the expats, like Karen; there are the Emiratis, headed by Sheikh Mohammed; and then there is the foreign underclass who built the city, and are trapped here. They are hidden in plain view. You see them everywhere, in dirt-caked blue uniforms, being shouted at by their superiors, like a chain gang – but you are trained not to look. It is like a mantra: the Sheikh built the city. The Sheikh built the city. Workers? What workers?

Every evening, the hundreds of thousands of young men who build Dubai are bussed from their sites to a vast concrete wasteland an hour out of town, where they are quarantined away. Until a few years ago they were shuttled back and forth on cattle trucks, but the expats complained this was unsightly, so now they are shunted on small metal buses that function like greenhouses in the desert heat. They sweat like sponges being slowly wrung out.

Sonapur is a rubble-strewn patchwork of miles and miles of identical concrete buildings. Some 300,000 men live piled up here, in a place whose name in Hindi means "City of Gold". In the first camp I stop at – riven with the smell of sewage and sweat – the men huddle around, eager to tell someone, anyone, what is happening to them.

Sahinal Monir, a slim 24-year-old from the deltas of Bangladesh. "To get you here, they tell you Dubai is heaven. Then you get here and realise it is hell," he says. Four years ago, an employment agent arrived in Sahinal's village in Southern Bangladesh. He told the men of the village that there was a place where they could earn 40,000 takka a month (£400) just for working nine-to-five on construction projects. It was a place where they would be given great accommodation, great food, and treated well. All they had to do was pay an up-front fee of 220,000 takka (£2,300) for the work visa – a fee they'd pay off in the first six months, easy. So Sahinal sold his family land, and took out a loan from the local lender, to head to this paradise.

As soon as he arrived at Dubai airport, his passport was taken from him by his construction company. He has not seen it since. He was told brusquely that from now on he would be working 14-hour days in the desert heat – where western tourists are advised not to stay outside for even five minutes in summer, when it hits 55 degrees – for 500 dirhams a month (£90), less than a quarter of the wage he was promised. If you don't like it, the company told him, go home. "But how can I go home? You have my passport, and I have no money for the ticket," he said. "Well, then you'd better get to work," they replied.

Sahinal was in a panic. His family back home – his son, daughter, wife and parents – were waiting for money, excited that their boy had finally made it. But he was going to have to work for more than two years just to pay for the cost of getting here – and all to earn less than he did in Bangladesh.

He shows me his room. It is a tiny, poky, concrete cell with triple-decker bunk-beds, where he lives with 11 other men. All his belongings are piled onto his bunk: three shirts, a spare pair of trousers, and a cellphone. The room stinks, because the lavatories in the corner of the camp – holes in the ground – are backed up with excrement and clouds of black flies. There is no air conditioning or fans, so the heat is "unbearable. You cannot sleep. All you do is sweat and scratch all night." At the height of summer, people sleep on the floor, on the roof, anywhere where they can pray for a moment of breeze.

The water delivered to the camp in huge white containers isn't properly desalinated: it tastes of salt. "It makes us sick, but we have nothing else to drink," he says.

The work is "the worst in the world," he says. "You have to carry 50kg bricks and blocks of cement in the worst heat imaginable ... This heat – it is like nothing else. You sweat so much you can't pee, not for days or weeks. It's like all the liquid comes out through your skin and you stink. You become dizzy and sick but you aren't allowed to stop, except for an hour in the afternoon. You know if you drop anything or slip, you could die. If you take time off sick, your wages are docked, and you are trapped here even longer."

He is currently working on the 67th floor of a shiny new tower, where he builds upwards, into the sky, into the heat. He doesn't know its name. In his four years here, he has never seen the Dubai of tourist-fame, except as he constructs it floor-by-floor.

Is he angry? He is quiet for a long time. "Here, nobody shows their anger. You can't. You get put in jail for a long time, then deported." Last year, some workers went on strike after they were not given their wages for four months. The Dubai police surrounded their camps with razor-wire and water-cannons and blasted them out and back to work.

The "ringleaders" were imprisoned. I try a different question: does Sohinal regret coming? All the men look down, awkwardly. "How can we think about that? We are trapped. If we start to think about regrets..." He lets the sentence trail off. Eventually, another worker breaks the silence by adding: "I miss my country, my family and my land. We can grow food in Bangladesh. Here, nothing grows. Just oil and buildings."

Since the recession hit, they say, the electricity has been cut off in dozens of the camps, and the men have not been paid for months. Their companies have disappeared with their passports and their pay. "We have been robbed of everything. Even if somehow we get back to Bangladesh, the loan sharks will demand we repay our loans immediately, and when we can't, we'll be sent to prison."

This is all supposed to be illegal. Employers are meant to pay on time, never take your passport, give you breaks in the heat – but I met nobody who said it happens. Not one. These men are conned into coming and trapped into staying, with the complicity of the Dubai authorities.

Sahinal could well die out here. A British man who used to work on construction projects told me: "There's a huge number of suicides in the camps and on the construction sites, but they're not reported. They're described as 'accidents'." Even then, their families aren't free: they simply inherit the debts. A Human Rights Watch study found there is a "cover-up of the true extent" of deaths from heat exhaustion, overwork and suicide, but the Indian consulate registered 971 deaths of their nationals in 2005 alone. After this figure was leaked, the consulates were told to stop counting.

At night, in the dusk, I sit in the camp with Sohinal and his friends as they scrape together what they have left to buy a cheap bottle of spirits. They down it in one ferocious gulp. "It helps you to feel numb", Sohinal says through a stinging throat. In the distance, the glistening Dubai skyline he built stands, oblivious.

IV. Mauled by the mall

I find myself stumbling in a daze from the camps into the sprawling marble malls that seem to stand on every street in Dubai. It is so hot there is no point building pavements; people gather in these cathedrals of consumerism to bask in the air conditioning. So within a ten minute taxi-ride, I have left Sohinal and I am standing in the middle of Harvey Nichols, being shown a £20,000 taffeta dress by a bored salesgirl. "As you can see, it is cut on the bias..." she says, and I stop writing.

Time doesn't seem to pass in the malls. Days blur with the same electric light, the same shined floors, the same brands I know from home. Here, Dubai is reduced to its component sounds: do-buy. In the most expensive malls I am almost alone, the shops empty and echoing. On the record, everybody tells me business is going fine. Off the record, they look panicky. There is a hat exhibition ahead of the Dubai races, selling elaborate headgear for £1,000 a pop. "Last year, we were packed. Now look," a hat designer tells me. She swoops her arm over a vacant space.

I approach a blonde 17-year-old Dutch girl wandering around in hotpants, oblivious to the swarms of men gaping at her. "I love it here!" she says. "The heat, the malls, the beach!" Does it ever bother you that it's a slave society? She puts her head down, just as Sohinal did. "I try not to see," she says. Even at 17, she has learned not to look, and not to ask; that, she senses, is a transgression too far.

Between the malls, there is nothing but the connecting tissue of asphalt. Every road has at least four lanes; Dubai feels like a motorway punctuated by shopping centres. You only walk anywhere if you are suicidal. The residents of Dubai flit from mall to mall by car or taxis.

How does it feel if this is your country, filled with foreigners? Unlike the expats and the slave class, I can't just approach the native Emiratis to ask questions when I see them wandering around – the men in cool white robes, the women in sweltering black. If you try, the women blank you, and the men look affronted, and tell you brusquely that Dubai is "fine". So I browse through the Emirati blog-scene and found some typical-sounding young Emiratis. We meet – where else? – in the mall.

Ahmed al-Atar is a handsome 23-year-old with a neat, trimmed beard, tailored white robes, and rectangular wire-glasses. He speaks perfect American-English, and quickly shows that he knows London, Los Angeles and Paris better than most westerners. Sitting back in his chair in an identikit Starbucks, he announces: "This is the best place in the world to be young! The government pays for your education up to PhD level. You get given a free house when you get married. You get free healthcare, and if it's not good enough here, they pay for you to go abroad. You don't even have to pay for your phone calls. Almost everyone has a maid, a nanny, and a driver. And we never pay any taxes. Don't you wish you were Emirati?"

I try to raise potential objections to this Panglossian summary, but he leans forward and says: "Look – my grandfather woke up every day and he would have to fight to get to the well first to get water. When the wells ran dry, they had to have water delivered by camel. They were always hungry and thirsty and desperate for jobs. He limped all his life, because he there was no medical treatment available when he broke his leg. Now look at us!"

For Emiratis, this is a Santa Claus state, handing out goodies while it makes its money elsewhere: through renting out land to foreigners, soft taxes on them like business and airport charges, and the remaining dribble of oil. Most Emiratis, like Ahmed, work for the government, so they're cushioned from the credit crunch. "I haven't felt any effect at all, and nor have my friends," he says. "Your employment is secure. You will only be fired if you do something incredibly bad." The laws are currently being tightened, to make it even more impossible to sack an Emirati.

Sure, the flooding-in of expats can sometimes be "an eyesore", Ahmed says. "But we see the expats as the price we had to pay for this development. How else could we do it? Nobody wants to go back to the days of the desert, the days before everyone came. We went from being like an African country to having an average income per head of $120,000 a year. And we're supposed to complain?"

He says the lack of political freedom is fine by him. "You'll find it very hard to find an Emirati who doesn't support Sheikh Mohammed." Because they're scared? "No, because we really all support him. He's a great leader. Just look!" He smiles and says: "I'm sure my life is very much like yours. We hang out, have a coffee, go to the movies. You'll be in a Pizza Hut or Nando's in London, and at the same time I'll be in one in Dubai," he says, ordering another latte.

But do all young Emiratis see it this way? Can it really be so sunny in the political sands? In the sleek Emirates Tower Hotel, I meet Sultan al-Qassemi. He's a 31-year-old Emirati columnist for the Dubai press and private art collector, with a reputation for being a contrarian liberal, advocating gradual reform. He is wearing Western clothes – blue jeans and a Ralph Lauren shirt – and speaks incredibly fast, turning himself into a manic whirr of arguments.

"People here are turning into lazy, overweight babies!" he exclaims. "The nanny state has gone too far. We don't do anything for ourselves! Why don't any of us work for the private sector? Why can't a mother and father look after their own child?" And yet, when I try to bring up the system of slavery that built Dubai, he looks angry. "People should give us credit," he insists. "We are the most tolerant people in the world. Dubai is the only truly international city in the world. Everyone who comes here is treated with respect."

I pause, and think of the vast camps in Sonapur, just a few miles away. Does he even know they exist? He looks irritated. "You know, if there are 30 or 40 cases [of worker abuse] a year, that sounds like a lot but when you think about how many people are here..." Thirty or 40? This abuse is endemic to the system, I say. We're talking about hundreds of thousands.

Sultan is furious. He splutters: "You don't think Mexicans are treated badly in New York City? And how long did it take Britain to treat people well? I could come to London and write about the homeless people on Oxford Street and make your city sound like a terrible place, too! The workers here can leave any time they want! Any Indian can leave, any Asian can leave!"

But they can't, I point out. Their passports are taken away, and their wages are withheld. "Well, I feel bad if that happens, and anybody who does that should be punished. But their embassies should help them." They try. But why do you forbid the workers – with force – from going on strike against lousy employers? "Thank God we don't allow that!" he exclaims. "Strikes are in-convenient! They go on the street – we're not having that. We won't be like France. Imagine a country where they the workers can just stop whenever they want!" So what should the workers do when they are cheated and lied to? "Quit. Leave the country."

I sigh. Sultan is seething now. "People in the West are always complaining about us," he says. Suddenly, he adopts a mock-whiny voice and says, in imitation of these disgusting critics: "Why don't you treat animals better? Why don't you have better shampoo advertising? Why don't you treat labourers better?" It's a revealing order: animals, shampoo, then workers. He becomes more heated, shifting in his seat, jabbing his finger at me. "I gave workers who worked for me safety goggles and special boots, and they didn't want to wear them! It slows them down!"

And then he smiles, coming up with what he sees as his killer argument. "When I see Western journalists criticise us – don't you realise you're shooting yourself in the foot? The Middle East will be far more dangerous if Dubai fails. Our export isn't oil, it's hope. Poor Egyptians or Libyans or Iranians grow up saying – I want to go to Dubai. We're very important to the region. We are showing how to be a modern Muslim country. We don't have any fundamentalists here. Europeans shouldn't gloat at our demise. You should be very worried.... Do you know what will happen if this model fails? Dubai will go down the Iranian path, the Islamist path."

Sultan sits back. My arguments have clearly disturbed him; he says in a softer, conciliatory tone, almost pleading: "Listen. My mother used to go to the well and get a bucket of water every morning. On her wedding day, she was given an orange as a gift because she had never eaten one. Two of my brothers died when they were babies because the healthcare system hadn't developed yet. Don't judge us." He says it again, his eyes filled with intensity: "Don't judge us."

V. The Dunkin' Donuts Dissidents

But there is another face to the Emirati minority – a small huddle of dissidents, trying to shake the Sheikhs out of abusive laws. Next to a Virgin Megastore and a Dunkin' Donuts, with James Blunt's "You're Beautiful" blaring behind me, I meet the Dubai dictatorship's Public Enemy Number One. By way of introduction, Mohammed al-Mansoori says from within his white robes and sinewy face: "Westerners come her and see the malls and the tall buildings and they think that means we are free. But these businesses, these buildings – who are they for? This is a dictatorship. The royal family think they own the country, and the people are their servants. There is no freedom here."

We snuffle out the only Arabic restaurant in this mall, and he says everything you are banned – under threat of prison – from saying in Dubai. Mohammed tells me he was born in Dubai to a fisherman father who taught him one enduring lesson: Never follow the herd. Think for yourself. In the sudden surge of development, Mohammed trained as a lawyer. By the Noughties, he had climbed to the head of the Jurists' Association, an organisation set up to press for Dubai's laws to be consistent with international human rights legislation.

And then – suddenly – Mohammed thwacked into the limits of Sheikh Mohammed's tolerance. Horrified by the "system of slavery" his country was being built on, he spoke out to Human Rights Watch and the BBC. "So I was hauled in by the secret police and told: shut up, or you will lose you job, and your children will be unemployable," he says. "But how could I be silent?"

He was stripped of his lawyer's licence and his passport – becoming yet another person imprisoned in this country. "I have been blacklisted and so have my children. The newspapers are not allowed to write about me."

Why is the state so keen to defend this system of slavery? He offers a prosaic explanation. "Most companies are owned by the government, so they oppose human rights laws because it will reduce their profit margins. It's in their interests that the workers are slaves."

Last time there was a depression, there was a starbust of democracy in Dubai, seized by force from the sheikhs. In the 1930s, the city's merchants banded together against Sheikh Said bin Maktum al-Maktum – the absolute ruler of his day – and insisted they be given control over the state finances. It lasted only a few years, before the Sheikh – with the enthusiastic support of the British – snuffed them out.

And today? Sheikh Mohammed turned Dubai into Creditopolis, a city built entirely on debt. Dubai owes 107 percent of its entire GDP. It would be bust already, if the neighbouring oil-soaked state of Abu Dhabi hadn't pulled out its chequebook. Mohammed says this will constrict freedom even further. "Now Abu Dhabi calls the tunes – and they are much more conservative and restrictive than even Dubai. Freedom here will diminish every day." Already, new media laws have been drafted forbidding the press to report on anything that could "damage" Dubai or "its economy". Is this why the newspapers are giving away glossy supplements talking about "encouraging economic indicators"?

Everybody here waves Islamism as the threat somewhere over the horizon, sure to swell if their advice is not followed. Today, every imam is appointed by the government, and every sermon is tightly controlled to keep it moderate. But Mohammed says anxiously: "We don't have Islamism here now, but I think that if you control people and give them no way to express anger, it could rise. People who are told to shut up all the time can just explode."

Later that day, against another identikit-corporate backdrop, I meet another dissident – Abdulkhaleq Abdullah, Professor of Political Science at Emirates University. His anger focuses not on political reform, but the erosion of Emirati identity. He is famous among the locals, a rare outspoken conductor for their anger. He says somberly: "There has been a rupture here. This is a totally different city to the one I was born in 50 years ago."

He looks around at the shiny floors and Western tourists and says: "What we see now didn't occur in our wildest dreams. We never thought we could be such a success, a trendsetter, a model for other Arab countries. The people of Dubai are mighty proud of their city, and rightly so. And yet..." He shakes his head. "In our hearts, we fear we have built a modern city but we are losing it to all these expats."

Adbulkhaleq says every Emirati of his generation lives with a "psychological trauma." Their hearts are divided – "between pride on one side, and fear on the other." Just after he says this, a smiling waitress approaches, and asks us what we would like to drink. He orders a Coke.

VI. Dubai Pride

There is one group in Dubai for whom the rhetoric of sudden freedom and liberation rings true – but it is the very group the government wanted to liberate least: gays.

Beneath a famous international hotel, I clamber down into possibly the only gay club on the Saudi Arabian peninsula. I find a United Nations of tank-tops and bulging biceps, dancing to Kylie, dropping ecstasy, and partying like it's Soho. "Dubai is the best place in the Muslim world for gays!" a 25-year old Emirati with spiked hair says, his arms wrapped around his 31-year old "husband". "We are alive. We can meet. That is more than most Arab gays."

It is illegal to be gay in Dubai, and punishable by 10 years in prison. But the locations of the latest unofficial gay clubs circulate online, and men flock there, seemingly unafraid of the police. "They might bust the club, but they will just disperse us," one of them says. "The police have other things to do."

In every large city, gay people find a way to find each other – but Dubai has become the clearing-house for the region's homosexuals, a place where they can live in relative safety. Saleh, a lean private in the Saudi Arabian army, has come here for the Coldplay concert, and tells me Dubai is "great" for gays: "In Saudi, it's hard to be straight when you're young. The women are shut away so everyone has gay sex. But they only want to have sex with boys – 15- to 21-year-olds. I'm 27, so I'm too old now. I need to find real gays, so this is the best place. All Arab gays want to live in Dubai."

With that, Saleh dances off across the dancefloor, towards a Dutch guy with big biceps and a big smile.

VII. The Lifestyle

All the guidebooks call Dubai a "melting pot", but as I trawl across the city, I find that every group here huddles together in its own little ethnic enclave – and becomes a caricature of itself. One night – in the heart of this homesick city, tired of the malls and the camps – I go to Double Decker, a hang-out for British expats. At the entrance there is a red telephone box, and London bus-stop signs. Its wooden interior looks like a cross between a colonial clubhouse in the Raj and an Eighties school disco, with blinking coloured lights and cheese blaring out. As I enter, a girl in a short skirt collapses out of the door onto her back. A guy wearing a pirate hat helps her to her feet, dropping his beer bottle with a paralytic laugh.

I start to talk to two sun-dried women in their sixties who have been getting gently sozzled since midday. "You stay here for The Lifestyle," they say, telling me to take a seat and order some more drinks. All the expats talk about The Lifestyle, but when you ask what it is, they become vague. Ann Wark tries to summarise it: "Here, you go out every night. You'd never do that back home. You see people all the time. It's great. You have lots of free time. You have maids and staff so you don't have to do all that stuff. You party!"

They have been in Dubai for 20 years, and they are happy to explain how the city works. "You've got a hierarchy, haven't you?" Ann says. "It's the Emiratis at the top, then I'd say the British and other Westerners. Then I suppose it's the Filipinos, because they've got a bit more brains than the Indians. Then at the bottom you've got the Indians and all them lot."

They admit, however, they have "never" spoken to an Emirati. Never? "No. They keep themselves to themselves." Yet Dubai has disappointed them. Jules Taylor tells me: "If you have an accident here it's a nightmare. There was a British woman we knew who ran over an Indian guy, and she was locked up for four days! If you have a tiny bit of alcohol on your breath they're all over you. These Indians throw themselves in front of cars, because then their family has to be given blood money – you know, compensation. But the police just blame us. That poor woman."

A 24-year-old British woman called Hannah Gamble takes a break from the dancefloor to talk to me. "I love the sun and the beach! It's great out here!" she says. Is there anything bad? "Oh yes!" she says. Ah: one of them has noticed, I think with relief. "The banks! When you want to make a transfer you have to fax them. You can't do it online." Anything else? She thinks hard. "The traffic's not very good."

When I ask the British expats how they feel to not be in a democracy, their reaction is always the same. First, they look bemused. Then they look affronted. "It's the Arab way!" an Essex boy shouts at me in response, as he tries to put a pair of comedy antlers on his head while pouring some beer into the mouth of his friend, who is lying on his back on the floor, gurning.

Later, in a hotel bar, I start chatting to a dyspeptic expat American who works in the cosmetics industry and is desperate to get away from these people. She says: "All the people who couldn't succeed in their own countries end up here, and suddenly they're rich and promoted way above their abilities and bragging about how great they are. I've never met so many incompetent people in such senior positions anywhere in the world." She adds: "It's absolutely racist. I had Filipino girls working for me doing the same job as a European girl, and she's paid a quarter of the wages. The people who do the real work are paid next to nothing, while these incompetent managers pay themselves £40,000 a month."

With the exception of her, one theme unites every expat I speak to: their joy at having staff to do the work that would clog their lives up Back Home. Everyone, it seems, has a maid. The maids used to be predominantly Filipino, but with the recession, Filipinos have been judged to be too expensive, so a nice Ethiopian servant girl is the latest fashionable accessory.

It is an open secret that once you hire a maid, you have absolute power over her. You take her passport – everyone does; you decide when to pay her, and when – if ever – she can take a break; and you decide who she talks to. She speaks no Arabic. She cannot escape.

In a Burger King, a Filipino girl tells me it is "terrifying" for her to wander the malls in Dubai because Filipino maids or nannies always sneak away from the family they are with and beg her for help. "They say – 'Please, I am being held prisoner, they don't let me call home, they make me work every waking hour seven days a week.' At first I would say – my God, I will tell the consulate, where are you staying? But they never know their address, and the consulate isn't interested. I avoid them now. I keep thinking about a woman who told me she hadn't eaten any fruit in four years. They think I have power because I can walk around on my own, but I'm powerless."

The only hostel for women in Dubai – a filthy private villa on the brink of being repossessed – is filled with escaped maids. Mela Matari, a 25-year-old Ethiopian woman with a drooping smile, tells me what happened to her – and thousands like her. She was promised a paradise in the sands by an agency, so she left her four year-old daughter at home and headed here to earn money for a better future. "But they paid me half what they promised. I was put with an Australian family – four children – and Madam made me work from 6am to 1am every day, with no day off. I was exhausted and pleaded for a break, but they just shouted: 'You came here to work, not sleep!' Then one day I just couldn't go on, and Madam beat me. She beat me with her fists and kicked me. My ear still hurts. They wouldn't give me my wages: they said they'd pay me at the end of the two years. What could I do? I didn't know anybody here. I was terrified."

One day, after yet another beating, Mela ran out onto the streets, and asked – in broken English – how to find the Ethiopian consulate. After walking for two days, she found it, but they told her she had to get her passport back from Madam. "Well, how could I?" she asks. She has been in this hostel for six months. She has spoken to her daughter twice. "I lost my country, I lost my daughter, I lost everything," she says.

As she says this, I remember a stray sentence I heard back at Double Decker. I asked a British woman called Hermione Frayling what the best thing about Dubai was. "Oh, the servant class!" she trilled. "You do nothing. They'll do anything!"

VIII. The End of The World


The World is empty. It has been abandoned, its continents unfinished. Through binoculars, I think I can glimpse Britain; this sceptred isle barren in the salt-breeze.

Here, off the coast of Dubai, developers have been rebuilding the world. They have constructed artificial islands in the shape of all planet Earth's land masses, and they plan to sell each continent off to be built on. There were rumours that the Beckhams would bid for Britain. But the people who work at the nearby coast say they haven't seen anybody there for months now. "The World is over," a South African suggests.

All over Dubai, crazy projects that were Under Construction are now Under Collapse. They were building an air-conditioned beach here, with cooling pipes running below the sand, so the super-rich didn't singe their toes on their way from towel to sea.

The projects completed just before the global economy crashed look empty and tattered. The Atlantis Hotel was launched last winter in a $20m fin-de-siecle party attended by Robert De Niro, Lindsay Lohan and Lily Allen. Sitting on its own fake island – shaped, of course, like a palm tree – it looks like an immense upturned tooth in a faintly decaying mouth. It is pink and turreted – the architecture of the pharaohs, as reimagined by Zsa-Zsa Gabor. Its Grand Lobby is a monumental dome covered in glitterballs, held up by eight monumental concrete palm trees. Standing in the middle, there is a giant shining glass structure that looks like the intestines of every guest who has ever stayed at the Atlantis. It is unexpectedly raining; water is leaking from the roof, and tiles are falling off.

A South African PR girl shows me around its most coveted rooms, explaining that this is "the greatest luxury offered in the world". We stroll past shops selling £24m diamond rings around a hotel themed on the lost and sunken continent of, yes, Atlantis. There are huge water tanks filled with sharks, which poke around mock-abandoned castles and dumped submarines. There are more than 1,500 rooms here, each with a sea view. The Neptune suite has three floors, and – I gasp as I see it – it looks out directly on to the vast shark tank. You lie on the bed, and the sharks stare in at you. In Dubai, you can sleep with the fishes, and survive.

But even the luxury – reminiscent of a Bond villain's lair – is also being abandoned. I check myself in for a few nights to the classiest hotel in town, the Park Hyatt. It is the fashionistas' favourite hotel, where Elle Macpherson and Tommy Hilfiger stay, a gorgeous, understated palace. It feels empty. Whenever I eat, I am one of the only people in the restaurant. A staff member tells me in a whisper: "It used to be full here. Now there's hardly anyone." Rattling around, I feel like Jack Nicholson in The Shining, the last man in an abandoned, haunted home.

The most famous hotel in Dubai – the proud icon of the city – is the Burj al Arab hotel, sitting on the shore, shaped like a giant glass sailing boat. In the lobby, I start chatting to a couple from London who work in the City. They have been coming to Dubai for 10 years now, and they say they love it. "You never know what you'll find here," he says. "On our last trip, at the beginning of the holiday, our window looked out on the sea. By the end, they'd built an entire island there."

My patience frayed by all this excess, I find myself snapping: doesn't the omnipresent slave class bother you? I hope they misunderstood me, because the woman replied: "That's what we come for! It's great, you can't do anything for yourself!" Her husband chimes in: "When you go to the toilet, they open the door, they turn on the tap – the only thing they don't do is take it out for you when you have a piss!" And they both fall about laughing.

IX. Taking on the Desert

Dubai is not just a city living beyond its financial means; it is living beyond its ecological means. You stand on a manicured Dubai lawn and watch the sprinklers spray water all around you. You see tourists flocking to swim with dolphins. You wander into a mountain-sized freezer where they have built a ski slope with real snow. And a voice at the back of your head squeaks: this is the desert. This is the most water-stressed place on the planet. How can this be happening? How is it possible?

The very earth is trying to repel Dubai, to dry it up and blow it away. The new Tiger Woods Gold Course needs four million gallons of water to be pumped on to its grounds every day, or it would simply shrivel and disappear on the winds. The city is regularly washed over with dust-storms that fog up the skies and turn the skyline into a blur. When the dust parts, heat burns through. It cooks anything that is not kept constantly, artificially wet.

Dr Mohammed Raouf, the environmental director of the Gulf Research Centre, sounds sombre as he sits in his Dubai office and warns: "This is a desert area, and we are trying to defy its environment. It is very unwise. If you take on the desert, you will lose."

Sheikh Maktoum built his showcase city in a place with no useable water. None. There is no surface water, very little acquifer, and among the lowest rainfall in the world. So Dubai drinks the sea. The Emirates' water is stripped of salt in vast desalination plants around the Gulf – making it the most expensive water on earth. It costs more than petrol to produce, and belches vast amounts of carbon dioxide into the atmosphere as it goes. It's the main reason why a resident of Dubai has the biggest average carbon footprint of any human being – more than double that of an American.

If a recession turns into depression, Dr Raouf believes Dubai could run out of water. "At the moment, we have financial reserves that cover bringing so much water to the middle of the desert. But if we had lower revenues – if, say, the world shifts to a source of energy other than oil..." he shakes his head. "We will have a very big problem. Water is the main source of life. It would be a catastrophe. Dubai only has enough water to last us a week. There's almost no storage. We don't know what will happen if our supplies falter. It would be hard to survive."

Global warming, he adds, makes the problem even worse. "We are building all these artificial islands, but if the sea level rises, they will be gone, and we will lose a lot. Developers keep saying it's all fine, they've taken it into consideration, but I'm not so sure."

Is the Dubai government concerned about any of this? "There isn't much interest in these problems," he says sadly. But just to stand still, the average resident of Dubai needs three times more water than the average human. In the looming century of water stresses and a transition away from fossil fuels, Dubai is uniquely vulnerable.

I wanted to understand how the government of Dubai will react, so I decided to look at how it has dealt with an environmental problem that already exists – the pollution of its beaches. One woman – an American, working at one of the big hotels – had written in a lot of online forums arguing that it was bad and getting worse, so I called her to arrange a meeting. "I can't talk to you," she said sternly. Not even if it's off the record? "I can't talk to you." But I don't have to disclose your name... "You're not listening. This phone is bugged. I can't talk to you," she snapped, and hung up.

The next day I turned up at her office. "If you reveal my identity, I'll be sent on the first plane out of this city," she said, before beginning to nervously pace the shore with me. "It started like this. We began to get complaints from people using the beach. The water looked and smelled odd, and they were starting to get sick after going into it. So I wrote to the ministers of health and tourism and expected to hear back immediately – but there was nothing. Silence. I hand-delivered the letters. Still nothing."

The water quality got worse and worse. The guests started to spot raw sewage, condoms, and used sanitary towels floating in the sea. So the hotel ordered its own water analyses from a professional company. "They told us it was full of fecal matter and bacteria 'too numerous to count'. I had to start telling guests not to go in the water, and since they'd come on a beach holiday, as you can imagine, they were pretty pissed off." She began to make angry posts on the expat discussion forums – and people began to figure out what was happening. Dubai had expanded so fast its sewage treatment facilities couldn't keep up. The sewage disposal trucks had to queue for three or four days at the treatment plants – so instead, they were simply drilling open the manholes and dumping the untreated sewage down them, so it flowed straight to the sea.

Suddenly, it was an open secret – and the municipal authorities finally acknowledged the problem. They said they would fine the truckers. But the water quality didn't improve: it became black and stank. "It's got chemicals in it. I don't know what they are. But this stuff is toxic."

She continued to complain – and started to receive anonymous phone calls. "Stop embarassing Dubai, or your visa will be cancelled and you're out," they said. She says: "The expats are terrified to talk about anything. One critical comment in the newspapers and they deport you. So what am I supposed to do? Now the water is worse than ever. People are getting really sick. Eye infections, ear infections, stomach infections, rashes. Look at it!" There is faeces floating on the beach, in the shadow of one of Dubai's most famous hotels.

"What I learnt about Dubai is that the authorities don't give a toss about the environment," she says, standing in the stench. "They're pumping toxins into the sea, their main tourist attraction, for God's sake. If there are environmental problems in the future, I can tell you now how they will deal with them – deny it's happening, cover it up, and carry on until it's a total disaster." As she speaks, a dust-storm blows around us, as the desert tries, slowly, insistently, to take back its land.

X. Fake Plastic Trees

On my final night in the Dubai Disneyland, I stop off on my way to the airport, at a Pizza Hut that sits at the side of one of the city's endless, wide, gaping roads. It is identical to the one near my apartment in London in every respect, even the vomit-coloured decor. My mind is whirring and distracted. Perhaps Dubai disturbed me so much, I am thinking, because here, the entire global supply chain is condensed. Many of my goods are made by semi-enslaved populations desperate for a chance 2,000 miles away; is the only difference that here, they are merely two miles away, and you sometimes get to glimpse their faces? Dubai is Market Fundamentalist Globalisation in One City.

I ask the Filipino girl behind the counter if she likes it here. "It's OK," she says cautiously. Really? I say. I can't stand it. She sighs with relief and says: "This is the most terrible place! I hate it! I was here for months before I realised – everything in Dubai is fake. Everything you see. The trees are fake, the workers' contracts are fake, the islands are fake, the smiles are fake – even the water is fake!" But she is trapped, she says. She got into debt to come here, and she is stuck for three years: an old story now. "I think Dubai is like an oasis. It is an illusion, not real. You think you have seen water in the distance, but you get close and you only get a mouthful of sand."

As she says this, another customer enters. She forces her face into the broad, empty Dubai smile and says: "And how may I help you tonight, sir?"

Some names in this article have been changed. End of Johann Hari's article.

Okay. You're still there? Did you survive to the description of the tragic reality of Dubai? If you did, you probably understood where the problem is - and why Disney will never build a theme park over there, as the simple truth is that Dubai is cursed. It's a land which have been built on the suffering of thousand of slaves - not to mention the death or suicide of some of them. Real slaves who can't escape, and all this in the 21st century. Outside it looks bright and shiny, but in fact everything is cursed.



And God knows that there was a lot of Theme park projects for Dubai...First, there was this Dubai Land project (picture above). It has been years now since it was announced. Dozens of companies created concepts for it. And did anything rise from the sands? Almost nothing. The indoor ski resort did it, but we're still waiting for any of the theme park projects, most of them on hold or canceled. The Formula 1 race track is on hold and only a Dinosaurs attraction called "Restless Planet" created by Jack Rouse Associates Co with the participation of London's Natural History Museum and Japanese Audio-animatronic company Kokoro will exist but delayed until 2011. Here are some renderings of this project - probably the only one of the Dubai Land project that will ever exist...




Universal Studios announced two years ago that they will build a theme park in Dubai. It seems that this one is still going on, or may be on hold...



Busch Gardens "Worlds Of Discovery" should have been build on one of the "Palms" artificial islands. It is now also canceled.



A Marvel Super Hero theme park was also announced: same: it's on hold.



And i could go on and on about canceled projects. You have no idea how many creative people have worked in the last 6 years for Dubai theme park projects that will never be build. Even some Disney imagineers quit WDI to go working on Dubai projects...and came back years later because nothing worked. There was no money. Nothing.

The truth is that Dubai is simply and mostly a giant real estate operation, that's all. Skycrapers and malls. I don't deny that they're trying to build a tourism destination - hoping visitors will spend a lot money in these luxury malls. In 2007 6.5 millions tourists went in Dubai - it's not bad for a place which was a desert some years ago, but it's definitely not enough for a Disney resort.

As for the other theme parks projects, it seems that everybody who was involved in them finally understood that everything was a mirage. After all, it's a desert all around, and everybody knows that mirage happens in desert, right?

But "desert" means "heat", and it is bloody hot in Dubai. Frankly, can you imagine anybody walking in a theme park a full day with outside temperatures over 130 degrees (Fahrenheit - 55 degrees celsius)? Also, as we know, islamic laws are pretty strict in the region and could even forbid men and women to ride together on a roller coaster...No kidding.
I have a full respect for islamic religion, but in some cases we have to admit that islamic rules can really be problematic...

Now, imagine a Disney project in the middle of all that: a country built by slaves, a heat like hell at least six months a year, inextricable islamic laws, etc... No way. As long as human rights and workers conditions stay like this in Dubai, Disney will never build a theme park out there. And they will be absolutely right. Not only because a MK that would have been built by slaves would be a disaster in terms of image for the company, but because slavery must not exist in 21st Century and everybody, including Disney, must stand against this. It's just as simple as that.

Johann Hari's article: copyright 2009 Independent News and Media Limited
 
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