The Disney Cruise Line is building new ships and creating a second island destination in the Bahamas to accommodate the bigger fleet.
Disney has bought a 700-acre property on the eastern Bahamian island of Eleuthera and the company will develop the area into a resort-style destination as a stop for its cruise ships.
The Orlando Sentinel reports that Bahamas Prime Minister Hubert Minnis announced the deal in a statement.
"The implementation of this project supports the government's plan of expanding the economy of our country and economic opportunities for our people by promoting development," said Minnis.
Disney is the parent company of ABC11.
Minnis said Disney will invest between $250 million and $400 million in the new destination.
The statement also says Disney will donate 190 acres of the land including the southernmost tip of the island for the creation of a national park.
Disney has operated a private island in the Bahamas, called Castaway Cay, for its passengers since 1998. The cruise line is growing from a four-ship fleet to seven by 2023, according to the Sentinel.
"We are pleased to have finalized an agreement with the government of the Bahamas that will enable us to create new and sustainable economic opportunities for the people of Eleuthera while celebrating the natural beauty and culture of this special place with our guests," Disney Cruise Line president Jeff Vahle told the Sentinel.
Disney Cruise Line creating second island destination in Bahamas