There is a strong possibility that Disney World, Disneyland and other theme parks owned by the company oversees won’t reopen its doors until early next year. This information was provided by John Hodulik, who is a managing director for USB in the area of investment research. The report is called “The Eye of the Storm” and it made all the major headlines.
According to John Hodulik’s report, concerns about health and economic might keep the theme parks closed throughout this year 2020. According to him, the lasting effects of the virus outbreak makes them assume a new date for the reopening in January 2021. That is the base of their analysis.
Different aspects that will make the parks remain closed.
There are several elements that might have a long and lasting impact than anticipated. The economic recession that will follow this health crisis; the need for social distancing and several health precautionary measures; also, aversion to travel and crowds are some of the elements that will put a strain on the business until scientists are able to develop a vaccine.
So far, Disney has not commented on the Hodulik’s issued report. So far, the company’s statement about the parks in Mach is the last information available. In the statement, the company said that both Walt Disney World and Disneyland in the USA would remain closed. There is no date for when they might reopen again.
Disney’s parks segment under revision
The mentioned Hodulik’s report that he provided to USA TODAY the publication was able to follow the third downgrade of the company’s stock price in April. The author of the report also reduced his target price and went from $162 to $114Pointing out also that the parks segment of Disney’s projected quarterly revenues had the largest amount of revisions.
In addition, the report has a hypothesis stating that the two American parks of the company might be fully operational again in eighteen months. This coincides with the timeframe given in early March by Dr. Anthony Fauci. He is the Director of the National Institute of Allergy and Infectious Diseases. In his statement, he predicted a year to a year and a half to test and mass-produce a coronavirus vaccine.
Reopening of the Economy
For Hodulik, the reopening of the economy will come in stages. Despite the fact that designated officers and state and federal level representatives work currently in this direction. Theme parks and other businesses that require a large concentration of people in one space will be at the bottom of the priority list. The priority is to restart strategic sectors for the country’s economy.
Other predictions related to the opening of Disney’s parks.
A J.P. Morgan analyst offered a more optimistic forecast. The analysis predicts a reopening of Disney World and Disneyland in June as the earliest date.
The assumption on which this new analysis is based in is the fact, among others, that by June lockdown and self-isolation measures might be less severe. At the same time, it is also the date on which Disney is allowing new reservations for the hotels inside the parks. June 1st is the first date on which you can book a room there.
Logically, not many people will attend at first. There will still be travel bans. The border between Canada and the US will remain close to all non-essential travel. International attendees will not be coming by this date. They represent nearly 20 percent of the Company’s annual visitors. At finally many of the consumers will find their financial conditions in bad shape to take on the expense.
Most of the summer plans of many families and individuals had to be put on hold. Which won’t help the situation.
It definitely won’t be working at its full capacity any time soon. It will be a gradual recovery. According to the JP Morgan report.
Current US administration recovery plans
The Coronavirus’s task force within the current Trump administration introduced a plan for the reopening of the American economy by mid-April. Guidelines form The National Governors Association would follow after this.
In this sense, Disney and Universal Orlando executives have been appointed to a ″Re-Open Florida” task force by the States’ Governor. Ron DeSantis. He is reportedly is eager to kick start Florida State’s economy. Obviously both amusement parks play a major role in the state’s economy as sources of employment and dynamizing the rest of the economic sectors in the area.
The States where both parks are located
Since March 19th, the state issued a stay at home order. Before lifting any restrictive measure, the state will go over six main criteria according to California Gov. Gavin Newsom. The factors to evaluate will comprise adequate testing and contact tracing. This will be a sign that the states’ health care system can take on re-infections or new ones and even place a new stay-at-home order in case it is necessary.
No borders stop the spread of the virus.
The novel coronavirus cannot be restricted by state or national boundaries. In this sense, it is important that every government level works together with a comprehensive approach. Thinking of the full picture and acting with both feet on the ground. Which means actively knowing the changing reality in each area.
How the Company has handled the spread of the virus?
Disneyland and Disney World closed in mid-March. Before the month ended the company issued a shutdown order for both parks. Closed until further notice.
Early in April, the parks stopped charging yearly pass-holders. And the employees at the park were furloughed since April 19th
Also, Disneyland Paris remains in the same situation. The fact is that France is one of the most affected countries by the virus. The park close on mid-March too and will remain so until further notice.
Disneyland in Tokyo closed earlier than the American and French parks. They shut down in late February. The same date when schools closed too. In an attempt from the government to slow down the spread of the infection.
They have had two reopening dates but had to be postponed. In mid-May, the government will review the facts and numbers to reassess the new dates.