Disney World is Reopening, but You Won’t Be Able to Hug Mickey


Walt Disney World, one of many largest vacationer websites on the planet, has a plan to reopen in mid-July. But the required security protocols — limiting the variety of guests, making face masks necessary, deploying roaming squads to implement social distancing, not permitting individuals to stand up shut and private with Mickey Mouse — exhibits how troublesome will probably be to function once-booming points of interest because the nation prepares for a broader reopening.

“We’re going slow because we want to make constant progress and not have to backtrack,” Bob Chapek, Disney’s chief govt, mentioned by cellphone from Florida on Wednesday. “The risk is going too far, too fast.”

The Orange County Recovery Task Force in Orlando approved reopening plans for Disney World and SeaWorld on Wednesday but pressed executives about how they would enforce mask wearing, something that has become a contentious issue as more people return to public places and may pose difficulties for vacationers in the Florida heat. Jim MacPhee, Disney’s World’s senior vice president for operations, said signs would have “strong language” and that “high-energy squads” of employees would remind guests about compliance. He said Disney might establish “relaxation zones” where guests can take off their masks.

Walt Disney World consists of six separately ticketed parks with combined annual attendance of 93 million. The two most popular ones, the Magic Kingdom and the Animal Kingdom, will reopen on July 11. Disney World’s other major parks, Epcot and Hollywood Studios, will reopen on July 15.

Visiting any theme park will be very different than in the past, at least until a vaccine is widely available. Universal’s reopening plan involves staggered parking to create distance between groups and increased mobile ordering at restaurants. Mr. Chapek said seats would be left empty on rides like Pirates of the Caribbean to separate guests and that half the tables in restaurants would be removed. Shops will have new signage: “Help us protect the Magic. Please limit handling of the product.”

And Disney will add a new reservation system for park entry; visitors can no longer walk up and buy a ticket. All visitors will have their temperatures checked.

Disney will start working with local unions to reopen at least some of its 18 Disney World hotels. “We will accordion hotel capacity up and down as needed,” Mr. Chapek said, noting that about 50 percent of Disney World guests typically stay at a Disney-owned hotel.

Disney did not give reopening dates for the smallest of its six Florida parks, Typhoon Lagoon and Blizzard Beach, which offer water slides. Disney Vacation Club, a time-share business with 3,200 units at the resort, will reopen on June 22. Disney Springs, an adjacent 120-acre shopping mall, began to reopen on May 20. “Guests have been extremely compliant,” Mr. Chapek said of mask requirements at Disney Springs.

Disney theme parks in California, France, Japan and Hong Kong remain closed. The company has given no indication when they could reopen.

“You can’t sugarcoat how hard this is going to be managerially,” Craig Moffett, a media analyst at MoffettNathanson, said on a recent conference call with clients. “Will there be a generational shift in the willingness of people to socially crowd? Will a generation of consumers find it uncomfortable to be strapped into a roller coaster next to a stranger? We just don’t know the answers.”

Theme parks have high costs. It takes a minimum number of people to operate the rides and a minimum amount of electricity to power them. Then add in upkeep, taxes and insurance. To cover those expenses — just to break even — Disney must sell a certain number of tickets. The company also makes money by selling food and merchandise and renting hotel rooms, all of which are driven by attendance.

So how can Disney make money if the resort opens to low capacity?

The media analyst Michael Nathanson said in an email that he had little clarity on the matter. (“None, zero!” was his precise answer.) Jessica Reif Ehrlich, a Bank of America analyst, said Disney could “cut down capacity for a period of time and still be profitable — well, well below 50 percent somewhere.” She added, “There are more things that Disney can do to contain costs than you might think. Fewer cashiers on duty. Fewer ride vehicles in operation. Some hotels still closed.” There will be no signature fireworks displays or parades, which involve hundreds of performers and pose crowd-control challenges.

Mr. Chapek positioned the reopening as providing “positive net contribution” to the company’s parks business. That means Disney World may not be profitable at first. However, revenue from reopening at a limited level is expected to exceed the costs associated with reopening and offset a good portion of the property’s fixed costs. In other words, Disney may ultimately lose money until capacity can be increased. But not as much as it would if the parks remained closed.

Mr. Chapek said prices would remain “status quo,” meaning Disney saw no need for discounts to draw back visitors. “There’s not going to be an issue with demand,” he said.

Sue Pisaturo, who founded Small World Vacations, a New Jersey agency that specializes in Disney trips, said interest had been “surprisingly strong” in recent weeks. “Some people are definitely raring to go,” she said.

But she predicted that mask requirements would keep some people away. Heather Abbott Vogel, an agent at Destinations in Florida Travel, agreed.

“I’ve had clients say, ‘If I have to wear a mask, I’m staying home,’” Ms. Abbott said.



Source link Nytimes.com

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