Disney set to reopen parks in Florida, hoping for a small measure of rebound

The Florida reopenings, however, represent a more high-stakes move — an opportunity for Disney to start recapturing much-needed revenue at home as well as a broader test of consumers’ willingness to leave their own homes during the pandemic.

The effort comes with challenges, including a surge in cases and objections from several constituencies.

More than 19,000 people have signed a petition calling on Florida Gov. Ron DeSantis (R) and the Walt Disney Co. to delay the opening. “While theme parks are a great way to relax and enjoy free time, it is a non-essential business; it is not fair to the people who work there to risk their lives, especially if they are at risk or have family members who are at risk,” the petition stated.

And Actors’ Equity, the guild that represents some 750 performers who act in Disney shows, has also objected to the reopening. The group has called for testing for cast members, who they said would frequently be compelled to act without masks at closer than six feet in park shows such as “Beauty and The Beast Live On Stage.” The company said it would move forward without the actors, citing agreements other unions have made agreements to return to work.

Florida on Thursday saw 411 hospitalizations due to the coronavirus, the most in more than three months, and 120 deaths, the most since the pandemic began, according to the Covid Mapping Project. More than 4,000 people have died of covid-19, the disease the virus causes, in the state and more than 17,000 people have been hospitalized.

While the surge in Florida cases has been most heavily concentrated in Miami-Dade County in South Florida, Orange County, where the parks are located, hit a record of more than 1,100 new cases last weekend and as of Friday had the fourth-highest number of hospitalizations of Florida’s 67 counties.

A Disney spokesperson would not comment. The chief medical officer for Disney Parks, Pamela Hymel, wrote in a blog post this week that “As we continue the phased reopenings of our parks and resorts across the world, promoting health and safety for our guests, cast members, and the larger community is a responsibility we take very seriously.”

She outlined a host of safety measures, including requiring advance reservations, physical distancing in ride lines and temperature checks upon entry that the company hopes reassures visitors.

Disney will require guests to wear masks except in a handful of designated areas such as restaurants.

While fireworks and parades will be halted, many of its most popular attractions, including Space Mountain and Pirates of the Caribbean, will be open.

In normal times, the Magic Kingdom alone attracts an average of 57,000 visitors each day, according to the Themed Entertainment Association trade group. But the capacity reduction and the possibility of many consumers staying home will cut significantly into Disney’s revenue, according to experts, who say operating the theme parks under these conditions is a probable money-loser.

“You have fewer people coming and then you have to hire many additional cast members for safety and cleaning — it’s probably double the payroll with far less revenue,” said Scott Smith, a professor at the University of South Carolina’s College of Hospitality, Retail and Sport Management who closely studies theme parks. “They’re going to be losing lots of money, but at some point you have to flip the switch. Not to be profitable for this year but to be profitable for the year after, and the year after that.”

Meanwhile, the reopening of Disneyland and Disney California Adventure, its two parks in Southern California, are delayed indefinitely as Gov. Gavin Newsom (D) has not provided guidelines in the wake of coronavirus surges in that state. Unions representing 17,000 employees at those parks had previously sent a letter to Newsom saying they objected to a planned July reopening.

Florida parks pose a unique challenge relative to California because many visitors do not live in the Orlando area and drive or fly from elsewhere. This could pose an additional hurdle to luring customers and create potential health challenges as visitors return to their home cities.

Local officials, including Orlando Mayor Buddy Dyer, Orange County Mayor Jerry Demings and DeSantis have said they fully support Disney’s reopening plans. With tens of thousands of employees, Disney is the biggest employer in Central Florida.

Disney chief executive Bob Chapek has said the company will limit capacity at the parks but has not provided a number, saying it calculates the figure based on social distancing requirements. In Shanghai, the park has been operating below 30 percent, or 24,000 visitors, per local regulations.

Attendance totals in Florida could be high in the first few days and then diminish, as Smith said was the case judging by social media images at Universal Orlando Resort, the smaller theme-park complex operated by Disney rival NBC Universal, after its opening last month.

During the July-September period last year Disney brought in $6.7 billion in theme-park revenue, according to financial disclosures, the most money of any of the company’s divisions. The unit also saw $1.4 billion in profit for the period, a number that is expected to be drastically down this year, as is the company’s annual total of $26 billion in theme-park revenue.