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How will Disney's losses in China effect park operations at Disneyland.

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  • #61
    Originally posted by WaltDisney'sAlec View Post
    Why are the parks closing? It seems like a stupid question, because of course it's due to Coronavirus. But probing a little deeper, I'm not confident I know of the answer.

    Are the parks closing as a preventative measure to hinder the spread of the disease? Or are the parks closing because it just isn't worth keeping it open when everyone is fearful or travel restricted?

    I'm sure cast members as well as guests in Asian countries (not just China) have had it impact their lives. The last thing Disney wants is the PR of being a breeding ground for the disease, or to be informed that one of their cast members unknowingly pass it on to guests.

    I am curious how much of a role the sheer profitability of operating the parks has played a role. Disneyland famously was closed a couple days of the week, and I seem to remember some saying that the park operated at a loss on some of its less busy days.

    I certainly don't think profitability is the only consideration they had when closing the parks, but they must have recognized some convergence of PR issues and profitability as motivating factors. I'm not convinced they are taking massive hits to their parks division just out of the goodness of their hearts.

    If we understand the exact relation between these two issues, then we might understand just what it will take to reopen the parks, whenever that day comes.
    Disney official reasons for shutting and Shanghai and Hong Kong[Note: both resorts have identical responses]
    :
    As a precautionary measure in line with preventive efforts taking place across China/Hong Kong, we are temporarily closing Shanghai Disneyland/Hong Disneyland park out of consideration for the health and safety of our guests and Cast Members.
    It doesn't make sense to have parks operating, when quarantines are in effect and travel plans are being canceled. So while financially speaking, it makes sense to close the resorts, I think it would be rash to assume that $ was the only factor in closing.

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    • #62
      Raising prices and cutting costs, most likely. At this point Disneyland isn't gonna manage to cram more people into it, so sadly that would be the the logical way to try and make up for lost revenue in closed parks.
      "Have I gone mad?"
      "I'm afraid so. You're entirely bonkers. But I'll tell you a secret. All the best people are. "

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