Disneyland Is Set To Reopen Parts Of California Adventure, Here’s How It Could Impact Disney’s Bottom Line
The Disneyland Resort in Anaheim, California has announced that a small part of Disney California Adventure theme park will be reopening in November for shopping and dining. The Disneyland Resort has not been allowed to fully reopen since the start of the coronavirus pandemic. The Downtown Disney District opened in July, with modified operations, but the two theme parks and three on-site hotels have not been allowed to reopen due to the strict theme park reopening guidelines from the California Governor, Gavin Newsom.
In July, Disneyland proposed reopening the resort in a similar manner to Walt Disney World DIS +2.6%, where guest capacity would be limited, a theme park pass system would be put in place, and everyone at the resort would be required to wear a mask at all times. That proposal was denied and Disney has not proposed a second reopening date as of publication. Because of the extended closure of the Disneyland Resort, thousands of Disney Cast Members have been furloughed or laid off.
The reopening of Buena Vista Street at Disney California Adventure is a bright spot in the ongoing Cast Member furlough. Over 200 people will be recalled to work at various spots around Buena Vista Street according to a Facebook post from a Disneyland Union, Workers United Local 50.
Buena Vista Street resuming some operations also helps Disneyland to alleviate some of the revenue loss the resort would have faced over the normally busy holiday season. According to an update from the Orange County Register, Michael Nathanson, founding partner of MoffettNathanson, mentioned Disneyland resort “has lost an estimated $2.2 billion in revenue during the 216-day closure.” Nathanson also estimated that the Disneyland Resort generated around $3.8 billion in revenue last year, which works out to about $10.4 million in daily revenue.
The Disneyland Resort plays a vital part in Southern California. According to a study by Cal State Fullerton’s Woods Center for Economic Analysis and Forecasting, the Disneyland Resort added $8.5 billion annually to the Southern California economy. Based on the study, the closure of the resort destination could be costing the economy in Southern California up to $23 million a day. The reopening of Buena Vista Street is likely to curb a small portion of the economic revenue, but until the entirety of the Disneyland Resort opens, Southern California will continue to be hit hard.