Disney eyes new markets as Japan ages

By Yoko Kubota

MAIHAMA, Japan (Reuters) - Disney characters who meet-and-greet in Japanese and a staff that speaks only Japanese mean that many of the attractions at Tokyo's Disney resort are lost, without translation, for non-Japanese speakers.

"The problem is the language," said Chanida Towithelertkul, a Thai tourist who said her Chinese, English and Thai-speaking tour group was frustrated by the language barrier at the resort.

As it marks its 25th anniversary on Tuesday and looks towards the next quarter century, attracting new markets such as foreign tourists, seniors and men may be crucial for the Disney resort in a country with the world's fastest ageing population. By 2055, 40 percent of Japan's population will be aged over 65.

"There is no way that the decrease of the population parameter is going to be a positive factor," said Naoshi Nema, an analyst at Morgan Stanley in Tokyo.

The first Walt Disney theme park to open outside of the United States, Tokyo Disney Resort includes Disneyland and DisneySea, a water theme park, two hotels and a shopping mall.

The parks, which generated $3.2 billion last year, have about 25.8 million annual visitors, over 96 percent of them from Japan. About 84 percent of visitors are aged 39 and under.

Unless the resort can persuade regulars to visit more often or win over a new customer base, the number of guests is bound to dwindle as Japan's population declines, Nema said.

Attracting tourists from abroad would be a sharp shift for a theme park that is so focused on the domestic market that it sometimes fails to address the needs of foreigners.