MCA to Build Theme Park in Japan

Entertainment giant MCA Inc., which operates Universal Studios theme parks in Los Angeles and Orlando, Fla., on Wednesday announced plans to build a $1.5-billion park in Osaka, Japan.

When completed in 1999, the 140-acre Universal Studios Japan is expected to rival Tokyo Disneyland in size, with a target of 8 million visitors in its first year of operation, Osaka city officials said. While Walt Disney Co.’s Euro Disney theme park in France is facing severe difficulties, the Tokyo park has been immensely successful since opening in 1983.

Construction of the MCA park will be the most dramatic venture to result from the 1990 purchase of Los Angeles-based MCA by Matsushita Electric Industrial Co. for $6.6 billion, the largest purchase ever of an American company by a foreign firm. Matsushita, the world’s largest consumer electronics maker, is based in Osaka.

One question emerging is why MCA would build the park now, given Japan’s weakened economy. Frank Stanek, president of MCA Enterprises International, said the company believes that Japan’s economy will recover before the park opens in five years.

“These are long-term projects. Recessions don’t last forever no matter where we are,” said Stanek, who is overseeing the project. He added that recessions often are a good time to build a major project because construction costs are usually lower.

Universal Studios Japan will be the first Universal Studios theme park built outside the United States. Like its U.S. counterparts, the theme park will feature replications of sets from famous Universal Pictures films such as “Jaws,” “E.T.” and “Jurassic Park”--movies that have been very popular with Japanese audiences.

In addition to the theme park, the development is expected to include film and television production facilities. MCA and its partners are also considering building shopping, dining and entertainment areas and hotels on nearby land.

Key issues, including the percentage of ownership between the city of Osaka and MCA, remain to be resolved. Rank Organisation, a partner in Universal Studios Florida, may also participate in the project, according to MCA.

But Osaka Mayor Masaya Nishio and other officials expressed confidence that the park--essentially a replica of the Universal Studios park in Florida--will be built.

In a statement, MCA President Sidney J. Sheinberg suggested that finding the right location had not been easy. He added that MCA believes the project will be aided by its waterfront location, access to transportation and nearby redevelopment.

The park is to be built on Osaka Bay, with construction set to begin in 1996. Vacationers from South Korea, Taiwan and Hong Kong, in addition to Japanese visitors, will have relatively easy access to the park site. Osaka is located 245 miles west of Tokyo, about a three-hour ride by bullet train.

Prospects for the success of the project should be boosted by the impending completion of the new Kansai International Airport in Osaka, due to open in September. Kansai International, Japan’s first 24-hour airport, is expected to become a major new transportation hub for East Asia.

Osaka Mayor Nishio said that within this year, the city government, local industrial firms and MCA will form a new joint corporation called Universal Studios Japan to carry out the park project.

In an interview, MCA’s Stanek downplayed Matsushita’s influence on the decision to launch the park.

He said that MCA has been exploring the development of a theme park in Japan since 1980--well before Matsushita acquired the company.

Holley reported from Tokyo and Bates from Los Angeles.