The theme parks of Disney all over the world may not open their gates again until 2021 because of the strict social distancing measures to fight the coronavirus pandemic.
This is definitely going to impact profitability.
Some of the best-known and largest theme parks of Disney may have to wait until the vaccine for coronavirus comes out.
However, some sites are advertising bookings in June. Travel restrictions, recession, and social distancing brought on by the coronavirus pandemic are factors that add to the business turning less profitable until the time when vaccines are widely available.
This is the financial analysis of Disney by UBS, an investment banking group.
The Walt Disney Company had announced in April that it had stopped paying 100,000 staff in order to save $500 million per month after a 5-week shut down because of the virus, impacting above 50% of its workforce.
Disney had begun shutting down the theme park in the 3rd week of March with major websites like Disneyland California, Disney World Florida, and Disneyland Paris getting affected significantly.
Despite online booking for the Disney World being advertised from June 1, according to the experts, the theme park may not see any business until 2021.
This timeline may seem to be linked to a scientific community’s predictions that the vaccine for coronavirus will take around 18 months to develop.
After that as well, the social distancing measures would be deemed necessary until the vaccine is proven to be effective. The experts advising the U.K. government said the only exit from coronavirus would be a vaccine.
John Hodulik, UBS expert said that the economic recession, new health precautions, lack of travel, social distancing, and crowd aversion may make Disney’s business less lucrative until a vaccine of COVID-19 is widely available.
Other experts, however, believe that Disney may restart in June but the attendance would be down.
Alexia Quadrani, JP Morgan analyst, said that international visitors would not be the first ones to come back to the Disney World, who account for only 20% of the footfall.
Disney is considering doing effective temperature checks at the entrance gates to counter the situation.
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