The closure of the parks of the Disneyland Resort have been closed for seven months, could be responsible for a massive revenue loss for 2020, according to one analyst.
According to The Orange County Register‘s Brady MacDonald, MoffettNathanson founding partner Michael Nathanson has claimed that the resort has lost $2.2 billion in revenue during the closure. While the Downtown Disney District has reopened to guests, parks and resort hotels have remained shuttered since March.
Nathanson added that the resort generated $3.8 billion in revenue last year, which is roughly $10.4 million per day. Cal State Fullerton’s Woods Center for Economic Analysis and Forecasting noted that the Disneyland Resort brings $8.5 billion annually to Southern California’s economy. That means the ongoing closure could cost the local economy as much as $23 million per day, or $5 billion during the past seven months.
Disney Parks worldwide may be facing a potential $21 billion revenue loss through 2022 due to the COVID-19 pandemic and the subsequent economic fallout, according to a research paper published by MoffettNathanson analysts back in May.
In April, Nathanson said:
“One of our core beliefs that we’ve observed in all the previous recessions and crises is that the park recovery takes time. People don’t instantly, when the economy goes back to growing, go to the parks. They basically look at their family balance sheets, they look at what damage has been incurred and hold on to their cash.”
Last month, Disney Parks, Resorts and Products announced that they would be laying off approximately 28,000 Cast Members, with thousands from the Disneyland Resort being affected. A group looking to pressure California Governor Gavin Newsom into releasing reopening guidelines for theme parks is holding a rally at the resort entrance this weekend, though state officials have previously stated that there is no set timeline for announcing them.
Keep reading WDNWT and Disneyland News Today for updates on the ongoing reopening saga.