DISNEY'S WILD RIDE: TROUBLED PARK CELEBRATES FIRST YEAR.

Byline: Greg Hernandez Staff Writer

ANAHEIM - The Walt Disney Co. knew there would be challenges in the first year of Disney's California Adventure - obvious comparison with its world-famous neighbor, Disneyland, and relatively few thrill ride attractions. But war and a recession were not in the cards.

As Southern California's newest theme park marks its first birthday today, Disney is optimistic that as America recovers, the company's effort to fine-tune the park with kid-friendly attractions and more of Disney's classic pixie dust sprinkled about will lead to improved attendance this year.

``There are challenges to overcome and we are in the process of managing those and overcoming them,'' said Tom Brocato, spokesman for California Adventure and Disneyland. ``We have a consistent record of success. Experience has told us that growth in our parks requires a ramp-up period.''

Disney has been in this position before. Its theme park in France, Disneyland Paris, was met with a lukewarm reception when it opened in 1992 but has since grown to become a popular and well-regarded destination.

California Adventure has had a similar rocky start.

``People didn't see Mickey Mouse running around so they didn't think it was Disney. That was the major complaint of people that went,'' said Tim O'Brien, senior editor of Amusement Business, an industry trade publication. ``It would have been easier to create another type of Disneyland that would have larger attendance and rave reviews. But they went out on a limb and created a new concept and it didn't work in the beginning.''

The park was originally touted as a theme park for older children and adults with gourmet restaurants and a working winery. But those concepts failed as the Mondavi vintners pulled out of the park as did celebrity chef Wolfgang Puck. Puck's upscale restaurant, Avalon, has been replaced with a kid-friendly eatery frequented by Mickey, Goofy and other Disney characters.

Jack Kyser, chief economist for the Los Angeles County Economic Development Corp., said the park's biggest problem has been that it ``has gotten as much negative publicity as positive publicity.''

``People have said it's not that exciting and light on rides and Disney has said they are going to do some adjusting of the formula,'' Kyser said.

Since the launch, Disney has made the changes by bringing Mickey Mouse and friends and newer characters from the hit Disney film ``Monster's, Inc.'' to mill about the park. In July, the Main Street Electrical Parade - for years a nightly staple at Disneyland until it was discontinued in 1996 - has returned nightly to Anaheim via California Adventure.

While Disney does not release attendance figures for any of its theme parks, O'Brien estimates that California Adventure drew approximately 5 million visitors during its first year of operation, considerably down from Disney's first-year attendance projections of 7 million. Disneyland had approximately 12 million visitors last year.

``I had originally estimated between 4 million and 4.5 million, but by offering joint tickets between the two parks, the turnstiles clicked and people started coming and giving it a chance,'' O'Brien said.

Attendance was boosted some during the winter months by unprecedented discounts offered by Disney. If the economy improves, O'Brien said he believes the park can avoid what is known as the ``sophomore slump'' in the theme park industry.

``Usually first year is big then the next few years suffer,'' O'Brien said. ``I don't think we will see that. I'd say they were underutilized this year.''

To mark the one-year anniversary of the 55-acre park, Disney officials today will announce details of two new attractions at the park. They include ``Flik's Fun Fair,'' which will be in a new area to open this fall called ``A Bug's Land'' based on the Disney film ``A Bug's Life,'' as well as ``The Twilight Zone of Terror,'' a new thrill ride slated to open in 2004. The elevator free-fall is currently featured at Disney-MGM Studios in Orlando.

The park had quietly opened its ``Who Wants to be a Millionaire'' attraction, based on the ABC television game show, in August with plans for a splashy press unveiling on Sept. 13. The terrorist attacks against the U.S. two days earlier scuttled those plans. So it wasn't until the last week of December that Regis Philbin, host of the television show, made an appearance at the park to promote the attraction.

``They fine-tuned, they listened to the people and now have more things for the family, offer joint tickets, and the nighttime parade helps keep people in the park,'' O'Brien said. ``But they are still being true to their original vision for the park.''

Brocato said internal research has shown that 90 percent of the park's visitors now say they would recommend it to their friends and would make a return visit.

Walt Disney Co. first-quarter earnings, announced last week, beat Wall Street estimates, but revenue at Disney's theme parks and resorts for the quarter decreased 17 percent and operating income was down by 51 percent. Hit especially hard has been Disney's Orlando theme parks, including Disney World, which is more heavily dependent on out-of-state airline travel.

Kyser said ``the hassle factor'' of increased security measures at airports will likely prolong the decline in airline travel. He said this means that California Adventure and other theme parks in Southern California will have to continue to rely heavily on the local market in 2002.

``The drive market is still very, very good,'' Kyser said. ``The challenge for Disney is to create an air of excitement about California Adventure and Disneyland.''

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4 photos

Photo:

(1 -- color) Walt Disney Co. CEO Michael Eisner and wife, Jane, pass a reproduction of the Golden Gate Bridge on California Adventure park's opening day.

(2 -- color) Eve Galen, 4, of West Hollywood, gets star treatment from Mickey House at California Adventure, the year-old Disney theme park.

Charlotte Schmid-Maybach/Staff Photographer

(3) A child runs across the grounds of Disney's California Adventure past a closed shop.

(4) Visitors enjoy the Sun Wheel at California Adventure park.

Rene Macura/Associated Press