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Like most businesses, Disney was hard hit by last year’s lockdown. This led to the loss of jobs for tens of thousands of employees and a loss of revenue.
Walt Disney Co (NYSE: DIS) CEO Bob Chapek revealed on Wednesday that Disney’s two California theme-parks are set open on the 30th of April. Meanwhile, DIS stock is 1% down today, trading at $193.05.
Florida’s Walt Disney World has been open since July last year and Chapek noted that it is evident the public is eager to return to Disney’s theme parks. This was during an interview with Julia Boorstin on CNBC’s “Squawk Alley”.
“I think as people become vaccinated, they become a little bit more confident in the fact that they can travel, and, you know, stay Covid-free. Consumers trust Disney to do the right thing, and we’ve certainly proven that we can [open] responsibly, whether it’s temperature checks, masks, social distancing, [or] improved hygiene around the parks”
Disney Grand Hotel and Spa in California will open a day before. The Grand Californian’s Vacation Club will reopen on May 2. All at limited capacity. Reopening dates for Disney’s Paradise Pier Hotel and the Disneyland Hotel are yet to be announced.
Covid restrictions vary from state to state. In some states theme parks have been operating at minimum capacity.
The California Department of Public Health has allowed theme parks, outdoor sports and live performances to continue subject to laid out guidelines. Theme parks will operate at 15 capacity. The department has assured that the guidelines will continue to be updated “based on science and vaccination progress”.
The number of new Covid-19 cases has been on the decline. A CNBC analysis of data compiled by Johns Hopkins University reveals that with an average of less than 2,900 new cases per day, there has been a 32% decline in the past week. This could be attributed to advancements in the vaccination exercise which has an average of 2.4 million people being inoculated per day.
Specific to Orange County, the home of Disneyland, daily new Covid-19 cases have dropped to 4 per 100,000 residents from 118 per 100,000 residents in January.
Like most businesses, Disney was hard hit by last year’s lockdown. This led to the loss of jobs for tens of thousands of employees and a loss of revenue. Total revenue has declined from $65.4 billion to $16.5 billion.
CFO Christine McCarthy, however, confirms that revenue generated from the parks that remained open exceeded variable costs.