Disney Parks Are Unlikely To Reopen Until 2021, According To Experts. 50% Of Employees Out Of Work
Disney World parks are unlikely to reopen until next year due to current coronavirus social distancing rules, which causes a big economic blow to the company.
Disney’s most successful theme parks may have to wait a long time before a COVID-19 vaccine is put on the market and they can resume business.
The guidance rules, travel restrictions, and economic damage caused by the pandemic all contribute to Disney’s low profits until a vaccine becomes “widely available”.
Recently, Disney announced it had stopped paying 100,000 workers in order to save $500 million per month after a five-week-long struggle due to the pandemic. This affects more than 50% of its employees.
The company started shutting down its theme parks in the middle of last month, with bigger sites such as Disneyland Paris, Disney World Florida, and Disneyland California all taking damage, as per The Sun.
Even though Disney World bookings have been advertised on June 1, experts have warned the company and others that they may not be able to resume business until 2021.
The suggested timeframe goes in accordance with the wider scientific community’s forecasts that the creation of a coronavirus vaccine will take about 18 months, and even when that time comes the social distancing guidelines will be kept in place until it is proven effective.
The global economic damage in addition to social distancing, more health precautions, and restricted movement is all likely to contribute to Disney’s negative profits, according to UBS analyst John Hodulik.
He added that Disney’s parks
“ were able to regain their recent operational cadence in less than 18 months, coinciding with initial expectations for a commonly available vaccine for Covid-19. ”
Nevertheless, some experts are of the mind that Disney’s resurrection could possibly happen in June, but with fewer visitors.
“I think you should assume that international visitors aren’t the first to return to Disney World,” JP Morgan analyst Alexia Quadrani told Barrons.
She went on saying that even though international visitors make up just 20% of all customers, other people have likely been financially hit, which further contributes to the problem.
In order to reassure its customers, Disney is thinking of introducing temperature controls at the entrances that are like those used at airports everywhere.
“Just as we are now carrying out bag checks on everyone entering our parks, at some point we may be adding a part that takes people’s temperature,” said Disney Executive Chairman Bob Iger.
But because of a high number of people going through the gates, this can prove to be difficult to achieve.
The company is in addition considering using virtual queue systems, which are already part of some areas of the parks.
A large number of Disney’s financially struck workers have joined millions of Americans who have lost their incomes in the past month.
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