Disney sacks Mickey Mouse execs

Staff form Mickey Mouse's head at Aulani after the resort's completion. Photo / Disney Parks

Disney has run into trouble in paradise. The company's latest mini-theme park is to open in less than two weeks, but while Goofy, Donald and the rest of the gang are packing their hula skirts and leis, the company bosses have fired the executives in charge of the new venture in Hawaii.

Disney is spending about US$850 million (just over $1 billion) building the Aulani resort and spa on the island of Oahu. But it seems this has been something of a Mickey Mouse operation.

The company suspended sales of timeshares at the resort after a review of the costs concluded that the business could lose money unless it raised fees.

The costs of running and maintaining the 8.5ha resort had been underestimated and will outstrip fees from Disney Vacation Club members.

Jim Lewis, president of Disney Vacation Club, the company's timeshare division, was fired last Friday. Two other executives are also out.

The problems in Hawaii have enraged the bosses at Disney headquarters because Aulani is a departure from its traditional mega-theme parks business and a test for what they hope will be a lucrative new chain of mid-size resorts and spas.

Instead of imposing the company's brand of Americana in carbon-copies of Disney World, the new ventures are meant to reflect the local culture.

At Aulani, guests get all the usual Disney trappings, but as well, there are hula dancing classes and, for children, storytelling around the fire pit, featuring traditional Hawaiian tales.

Disney acquired the land in 2007 and built more than 800 residential and hotel units. It had been marketing timeshares at Aulani for more than a year when it called the temporary halt last month.

It has told Disney Vacation Club members they will have to pay more than they were expecting if they sign up from now.

The parks and resorts division is the second most important to Disney, after its television channels.

- Independent