Disneyland Resort has been closed for several months now, and without finalized theme park reopening guidelines from the state of California, no reopening date for the parks has been set yet.
In fact, just earlier today we shared that Disneyland was canceling all hotel reservations through the end of October.
Much like other businesses, for every day that theme parks in California remain closed, they stand to lose a great amount of revenue. What do those numbers look like for Disney’s original theme park in Anaheim? According to The Orange County Register, analyst Michael Nathanson, a founding partner of MoffettNathanson, estimates that the resort faces a “multi-billion dollar revenue loss” as a result of the closures. Nathan estimates that Disneyland Resort has lost approximately $2.2 billion in revenue during the 216-day closure.
Although Downtown Disney reopened in July, Disneyland Park, Disney California Adventure Park, and the three Disneyland Resort hotels all remain closed as they await reopening guidelines from the state.
Nathanson notes that Disneyland Resort “generated an estimated $3.8 billion in revenue last year,” which works out to about $10.4 million in daily revenue.
Aside from generating revenue for itself, a “study by Cal State Fullerton’s Woods Center for Economic Analysis and Forecasting found that the Disneyland resort added $8.5 billion annually to the Southern California economy.” So, Disneyland’s closure could result in an estimated loss to the Southern California economy of $23 million a day, or $5 billion during this closure period. Many are eager for Disneyland to reopen. One ad, which was set to be seen by web users in Southern California, urged Governor Newsom to “help Anaheim get back to work” and “reopen theme parks and reawaken [the] region.”
The OCR also notes that analysts have warned that Disney theme parks face a potential $21 billion revenue loss through 2022 because of the impact of Coronavirus across Disney’s theme parks and resorts around the world. A post-coronavirus recession could further “complicate any theme park recovery plans” according to the OCR.
In a conference call held in April, Nathanson said that “park recovery takes time…People don’t instantly, when the economy goes back to growing, go to the parks. They basically look at their family balance sheets, they look at what damage has been incurred and hold on to their cash.”
So far, we’ve seen early details of the reopening guidelines for theme parks in California, and have learned that Governor Newsom has sent a team to Disney World and is sending a team to Disneyland and other theme parks as well, to help inform the guidelines. We’re keeping an eye out for more information on this situation and we’ll let you know as we see any updates related to Disneyland’s future reopening.