While Disney Parks around the globe remain temporarily closed due to the ongoing global health situation, analysts are weighing in on the potential depth of the financial loss for the Walt Disney Company.
An article by The Press-Enterprise explores the projections according to an analyst report by research firm MoffettNathanson, specifically regarding the losses faced by the theme parks.
“Disney theme parks face a potential $21 billion revenue loss through 2022” due to the park closures (which — at press time — will continue until further notice) according to the report.
While we are all eagerly anticipating the reopening of the parks (and, in fact, there is already chatter about a possible May 2020 reopening for Disneyland Shanghai), the report by MoffetNathanson states that “We believe that investors are underestimating the lagging recovery nature of Disney’s theme parks.” The report ultimately forecasts that theme park revenues could be as much as $21.7 billion below 2019 fiscal year levels.
The Press-Enterprise article provides some perspective: “That’s enough to pay for Shanghai Disneyland four times over. Disney’s $5.5 billion Chinese theme park resort opened in 2016.”
Bearing in mind that an economic downturn is anticipated even after the health situation begins to resolve, this could mean that theme parks may encounter a “slower ramp back to a new normal,” with the travel and hospitality industries facing an impact more severe than those following 9/11 and the 2008-09 economic downturn. (It’s also noted in the report that “Disney’s U.S. hotel revenue didn’t return to pre-recession levels for three years.”)
The assumption in the report is that Disney park attendance will drop by 50% through the end of the 2020 fiscal year. For 2021, the assumption is projected to 75% of previous attendance levels and 90% for 2022.
Another potential factor affecting revenue may be the possibility of discounted theme park tickets (to help ramp up attendance following the closures). The report also states that “Disney is expected to delay capital expenditures on non-critical theme park projects to help curtail the losses.”
All that said, the analysts also anticipate the potential for a big rebound in Disney parks attendance levels in 2022, assuming that the threat from the health crisis diminishes when a vaccine becomes widely available.
Tonight, Disney will present how the company fared during the first three months of the year, its fiscal second quarter. So, we should have more info to share on the companies earnings for the year so far.
We, of course, are continuing to monitor Disney Parks and destinations around the world as they are impacted in this moment, and you can explore that topic further by visiting any of the links below.
More Disney Park Closure Details and Info
Click HERE for the All Latest Updates
Disney Parks Closure Extended “Until Further Notice.”
Should I Cancel My Disney World Vacation?
Disney’s Closure Timeline and What It Could Mean For Disney’s Reopening
Your Disney Trip Was Canceled -- Now What? DO'S and DON'TS to Cancel, Get Refunds, and Reschedule
Disney World and Disneyland Closure Questions Answered!
Are Disney World Restaurants Really Just Firing Everybody?! It’s Much More Complicated Than You Think
Join the DFB Newsletter To get all the latest Disney Park Closure News Delivered Right to Your Inbox Click here to Subscribe
Are you following the latest on the Disney Parks around the world? Please let us know with a comment.Â
TRENDING NOW

A new and incredibly luxurious resort is being built next door to Walt Disney World...

We're answering your questions about the new Guardians of the Galaxy ride in EPCOT! See...

We have the BEST happy photos from Disney World that are guaranteed to make you...

Let's take a look at EVERY character meal that has returned to traditional service in...

From new restaurant hot spots to tried-and-true classics that only get better with age, consider...

Brace yourself -- here are all the Disney World menu changes that happened this week!

Mickey shaped foods are fun to eat -- whether they're Mickey Pretzels, Mickey Cupcakes, or...

Make Chef Art Smith's famous Hummingbird Cake at home with this DIY Disney Recipe!

Former Disney Imagineer Joe Rohde comments on the odd tradition that takes place at Expedition...

This new Disney collection has us wanting to drop all our cash IMMEDIATELY!

The nightmare situation: You can't wait to ride 'Star Wars': Rise of the Resistance in...

Come with us as we walk you through the steps of renting a stroller in...

The route for the proposed train from the Orlando Airport will now go past the...

Check out our full review of the newly reopened 'Ohana's breakfast!

We've rounded up a TON of free Disney coloring sheets so you can take a...

The copyright on Mickey Mouse expires in a few years. What does that mean for...

Disney says that most guests can get on 2 to 3 rides per day with...

In tday's brand new DFB Video, we're looking at how to handle those Disney vacation...

We have a look at the FULL MENU for the returning Hoop-Dee-Doo Musical Revue at...

Disney World just announced that MORE character meet and greets are coming back to the...
Leave a Reply