Page 5 - The Edge Issue 8

DISNEY DEFUNCT Amid a world pandemic, Walt Disney World closes for the third time in history. Story by Phoenix Boggs
The Walt Disney World Orlando park has always been a staple of Florida’s tourism industry. The vibrant businesses within the park attract millions of tourists and Florida residents every year, brightening the spirits of children and adults alike. Then, however, a global pandemic knocked businesses, restaurants, and parks into the dust. In response to the dangers of coronavirus and its spread, and in a move precedented only twice in Disney parks history, Walt Disney World has been rendered completely defunct.
It is recommended that, in the midst of a pandemic, gatherings of more than 10 people are strictly avoided. This “less than 10” rule follows the guidelines of a concept called social distancing, a health practice that dictates
the least possible interaction among potentially-infected people. Under social distancing guidelines, it is obviously hazardous for Disney World Orlando (which hosts about 50,000 visitors a day) to continue to accomodate guests. So, on March 13, the park finally
shuttered its operations. During this
early March stage of the pandemic,
a more optimistic view of the
coronavirus prevailed- it was
believed that Disney World would
be open for business again by
early April. On March 27, however,
Disney became disillusioned. The
company announced that its doors would
remain closed indefinitely, or “until further
notice.” This means that there is no exact
timeline for when these parks will be open
again, so nobody knows for sure when visitors
will be able to return to the land of magic.
The Disney World park has tremendous influence
on Florida’s economy, responsible for drawing millions in tourism revenue and for providing jobs in Central Florida. But even though Disney World has such a great economic impact on Florida, the effect that the park closing will
have on the Florida economy is difficult to pinpoint. Amid all of the “shelter in place”
warnings and decreased tourism and
movement in general, it is doubtful whether the park closing will have any extreme effect on the Florida economy
that differs from the consequences of the broader consequences of the coronavirus.
Orange County, for example, has lost more than $280 million due to convention
cancellations alone, so the economic effects of Disney’s shutdown are hard to pin down in the flood of revenue losses. But while Disney’s economic
effect on the state of Florida can’t be easily quantified, the Disney corporation’s losses
can be: since late February, Disney’s stock has dropped by nearly 30%, and
the executive managers of the company are foregoing pay. Theme parks represent almost a third of Disney’s revenue, and according to a MoffettNathanson analyst report, Disney theme parks in the US face a potential $3.4 billion revenue loss from the coronavirus crisis. This revenue loss is not only due to park closures, but also to the economic recession that is predicted to emerge soon as a result
of the economic stagnation of the general precautionary coronavirus atmosphere.
Disney, meanwhile, has been forced to lay off workers and interns during the park closure. While the choice to lay off or furlough “cast members” was unavoidable, many have criticized the abruptness and lack of preparation that has characterized the Disney layoffs. More than 2,000 interns working, many for minimum wage, at the Disney World Orlando park were told on March 14 that their
internship program was cancelled and that they had less than a week to
move out of Disney housing. This decision sparked controversy
as angry interns argued against what they perceived as a lack
of warning and forethought on Disney’s part. Many of the interns
were international students, some having originated from countries such as Chile and Australia, and were suddenly
forced to scramble to find plane tickets home. Disney park representatives stated that the
short notice was a necessary precaution, and that the same necessary measures were reflected
in college campuses all across the country as students were left with no option other than to head home. While students and interns have accused Disney of leaving them with no warning of the impending closures and no resources to fund their trips home, Disney has pledged to work with each individual intern and address the unique challenges that many will have.
It’s easy to make worst-case predictions for Disney
and for the Disney World Orlando park. The economic consequences of the coronavirus pandemic have been disastrous for the entire country and especially for
the company of Disney, with the media giant’s stock plummeting from $150 a share four months ago to $91.81
a share on March 12. However, the future doesn’t look entirely dark for Disney magic. Economic analysts working
to assess Disney’s future prospects estimate that much
of the company’s current financial downturn is short-term. Once Disney parks and experiences are reopened, they
are expected to fill to capacity, and the intellectual property powerhouses of Pixar, Lucasfilm and Marvel will help
Disney to withstand the revenue loss onslaught. While the current state of Walt Disney World park may look bleak, every economic projection forecasts that Disney has the power to weather the storm. 4