Heat waves and heavy rain wreck the pleasure of outdoor amusement parks.
That simple fact has hammered the shares of Oriental Land, which operates Tokyo Disney Resort. Sweltering temperatures this summer coupled with increasing bouts of torrential rains have kept visitors away from the parks and as a result the company’s stock has plunged 25% this year, the seventh-worst performer on the 225-issue Nikkei stock index.
Japan had a record number of overseas tourists in July and their preferences are shifting in accordance with the weather. Companies that offer indoor entertainment have seen visitor numbers swell along with profits and their share prices. Sanrio, the owner of the Hello Kitty brand, operates two indoor theme parks and has enjoyed a 93% gain in its stock this year. Round One, which operates a chain of air-conditioned arcades with bowling alleys and video games, has seen shares rise 56%.
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