Keeping several of the world's most popular vacation resorts closed is no cheap business.
Like most of us, The Walt Disney Company has also been going through a strange time. For the first time in Disney history, all six Disney theme park resorts are closed simultaneously. Of course, the company's decision to shut its doors did not come as a surprise considering more than 400,000 people attend their parks worldwide every day, making them major hotspots for crowds. And yet, it is also certain that this decision is bound to cost Disney a lot of money. If you've also been wondering how costly keeping these major attractions shuttered can be, we found out how many millions Disney is losing from their park closures. Here are some nostalgic Disney World facts if you want to reminisce.
For every day the parks are closed, Disney is losing millions
Disney theme parks and resorts on both coasts, as well as in other parts of the world, have been closed indefinitely since March 27. This means that Disney has been losing $20 million to $30 million for every day that the parks remain closed, according to a report by Variety. This is certainly a lot of money, but when you consider that theme parks, experiences, and consumer products made up nearly half of the company's operating income last year, it is certainly not surprising. While we cannot know how long the park closures will last, Disney may take a nearly $2 billion revenue hit in 2020, according to UBS.
The loss of revenue seems to have already started to take its toll on the company. Recently, The Walt Disney Company announced that it would furlough employees "whose jobs aren't necessary at this time" beginning on April 19, according to Business Insider. Disney did not respond when Reader's Digest reached out for comment.
However, the company cited the economic impact of the coronavirus pandemic on the parks as the reason behind furloughing some employees in a statement. "The COVID-19 pandemic is having a devastating impact on our world with untold suffering and loss, and has required all of us to make sacrifices. Over the last few weeks, mandatory decrees from government officials have shut down a majority of our businesses. Disney employees have received full pay and benefits during this time, and we've committed to paying them through April 18, for a total of five additional weeks of compensation. However, with no clear indication of when we can restart our businesses, we're forced to make the difficult decision to take the next step and furlough employees whose jobs aren't necessary at this time," the company said. Here are some secrets Disney park workers won't tell you.
What's next for Disney?
While Disney's situation might seem grim, there is some glimmer of hope. Walt Disney World in Orlando, Florida, and Disneyland Resort in Anaheim are both accepting new reservations for dates starting June 1, 2020. Universal Orlando Resort and Universal Studios Hollywood also announced May 31 as the tentative end of their park closure in a statement on the Universal Parks website.
Even if the parks end up opening on June 1, it's safe to assume that there will be several noticeable changes. For example, Bob Iger, executive chairman of The Walt Disney Company, mentioned the possibility of adding a temperature check as part of security checks to Barrons. Guests at the reopened Disney shopping, dining, and hotel areas in Shanghai are required to wear face masks and follow social distancing measures. It's possible that the U.S. parks could adopt these measures for a period of time before fully reopening. Disney's college program is also currently suspended for this year. But you might be surprised to learn that there are still things happening in Disney World even though it's closed.
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Here's How Many Millions Disney Is Losing from Their Park Closures, Source:https://www.rd.com/culture/how-much-money-is-disney-losing/
