'Mummy' Bound for New Ride

It's strapped for cash, and it wants to unload its theme parks, but Vivendi Universal isn't about to let Walt Disney Co. off easy.

The two entertainment giants have been in a ride rivalry for 13 years.

Vivendi says it's getting ready to fire its next volley with Revenge of the Mummy, an $80-million ride scheduled to open at its Universal Studios Florida in Orlando and Universal Studios Hollywood in spring 2004.

The company says the new attraction -- an unusual fusion of high-speed technology, pyrotechnic effects and space-age robotics-- will be one of its most ambitious and technologically advanced to date. Just the fact that Vivendi's Universal Parks & Resorts unit is proceeding with the project when the future of its parks is uncertain makes Revenge of the Mummy unusual, especially since the industry has been so recently clobbered by the economy.

"The timing is curious," said Orlando-based theme park consultant Steve Baker. "It's extremely significant and shows great confidence in the business."

The war with Iraq, weak consumer confidence and the falloff in travel since the Sept. 11 terrorist attacks have brought a steep decline in tourism. That was underscored Thursday when Vivendi reported a 25% drop in theme park revenue in the first quarter. To slash debt, the French company has put its Universal theme parks, movie studio and television assets up for sale.

Universal executives began planning for the attraction 10 years ago, long before this downturn. They say they have to invest in new rides and shows to stay competitive and keep customers coming back.

"We have huge confidence in the business and we're long-term players," said Tom Williams, chairman of Universal Parks & Resorts. "We believe the timing of this is going to work out perfectly. We've seen an uptick in consumer confidence, which closely correlates with theme park attendance. The economy is improving."

For its part, Disney is opening an ambitious space attraction at Walt Disney World's Epcot theme park later this year. It plans to open a Himalayan-themed roller coaster at Walt Disney World's Animal Kingdom in 2006. And in Anaheim, Disney is building the Twilight Zone Tower of Terror, a $75-million ride set to open at California Adventure next year.

Now Universal Studios hopes to up the ante with the Mummy ride.

"It's Coke-Pepsi," Baker said of the competition between the two companies, "an arms race for sure."