Disneyland Closure: $2 Billion Loss?
Disneyland closure costs CA and estimated $23-million a day in revenue…
I am really looking forward to reading reporting on a new ride or attraction at Disneyland. I am really looking forward to reading stories about the cast members who make magic for everyone, everyday.
The OCR’s Brady MacDonald and everyone who cover the Disney beat make my days better when they’re able to tell us how Imagineers push the envelope.
BUT… And, in 2020, there is always a but; today ain’t that day.
Disneyland: Lots of Revenue Lost
Today, MacDonald posted (another) story regarding the estimated revinue lost by Disneyland during the lengthy shut down of the resort.
- The Disneyland resort has lost an estimated $2.2 billion in revenue during the 216-day closure of Disney’s Anaheim theme parks, according to MoffettNathanson founding partner Michael Nathanson…
- The Disneyland resort generated an estimated $3.8 billion in revenue last year, according to Nathanson. That works out to approximately $10.4 million in daily revenue generated by the Disneyland resort.
- “One of our core beliefs that we’ve observed in all the previous recessions and crises is that the park recovery takes time,” Nathanson said in April on a conference call. “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.”
Meanwhile, a study by Cal State Fullerton says Disneyland added $8.5 billion to the SoCal economy, annually.
MacDonald added, “That means the closure of Disneyland could be costing the Southern California economy as much as $23 million a day — or $5 billion during the 216-day closure, based on estimates from the study.”
What if? Disneyland…
Makes you think, doesn’t it. It makes you feel really bad for the people who have been laid off. And it makes you wonder if EVERYONE, EVERYWHERE had taken the same approach as Walt Disney World (masks, hand-washing, social-distancing) whether the 216-day shutdown (and the other, more important national stats like layoffs, infections and deaths) would have been a fraction of that number.
Until then, be sure to keep reading.