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Disney theme parks take $3.5 billion hit due to coronavirus

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Disney said Tuesday afternoon that its theme parks division took a $3.5 billion hit due to the coronavirus pandemic.

Disney Parks reported an 85% decline in revenue this quarter compared to last year, and the company said it believes the total negative impact of COVID-19 on parks this quarter is $3.5 billion.

“Unfortunately, COVID struck again and all the numbers started going up. This gave some level of trepidation to travelers who are anxious about long distance travel, jumping on a plane and flying to Walt Disney World,” Disney’s CEO and CFO announced the Parks, Experiences and Products Bob Chapek said.

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About half of Walt Disney World visitors are coming from local markets. Disney is seeing a higher number of reservation cancellations than it expected.

Chapek is optimistic that once Florida’s COVID-19 numbers decline, tourists will come back.

“Our research indicates and our bookings indicate that we should be in good shape once consumer confidence sort of returns,” Chapek said.

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Disney leaders say based on reservations, there is enough demand to surpass the current capacity caps put in place to ensure social distancing.

Overall sales for the company fell 42% to $11.8 billion.

Disney did report positive returns on its new streaming service, Disney+, which had nearly 60 million subscribers at the end of June, according to the company.

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