Analysts are predicting that the Disneyland Resort has lost $2 billion since closing in March. The loss comes from the closure of Disneyland Resort parks and hotels. The news came from MoffettNathanson founding partner Michael Nathanson.
According to Nathanson, the Disneyland Resort generated $3.8 billion dollars in 2019. This means that the Disneyland Resort generated approximately $10.4 million in daily revenue. Cal State Fullerton’s Woods Center for Economic Analysis did a study that found that the Disneyland Resort generated $8.5 billion annually to the Southern California economy. This adds up to approximately $23 million in revenue lost daily for the Southern California economy. This adds up to $5 billion over the course of the entire closure to date.
Disney theme parks could face $21 billion in losses through 2022 due to the pandemic if projections by MoffettNathanson turn out to be true. These projections include a post-pandemic recession.
“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.”
Disneyland, Disney California Adventure, Disneyland Hotel, Disney’s Grand Californian Hotel, Paradise Pier Hotel and Downtown Disney all closed down in March. Downtown Disney District reopened in July but the rest of the Resort remains close while awaiting reopening guidelines from the state of California.
In September Disney Parks, Experiences and Products announced that it would be laying of 28,000 cast members. Many of these cast members have already been laid off. Currently reopening seems to be a standstill as Governor Newsom sends teams to various theme parks in Florida and California to come up with reopening guidelines. Disney maintains that it is ready to responsibly open the Disneyland Resort at any time.
DAPS MAGIC will continue to pursue this story and provide updates as they become available. What do you think of these projections? Share your thoughts in the comments below!