Although Disney is hoping to reopen the Disney World and Disneyland theme parks as soon as possible, one analyst thinks that won't be earlier than January of next year. With health precautions and concerns over the current pandemic, the belief is that Disney will be better off waiting until 2021 to reopen Disney World and Disneyland. The Disney parks have been shut down in late March.
In a message to clients, UBS director of investment research John Hodulik, said he believes that both health and economic considerations will force companies like Disney to keep their theme parks closed until 2021 at the earliest. From an economic perspective, the theme parks would have to spend more to meet new regulations and would have to limit attendance.
As a result, the odds of making a profit are lower and potentially not worth even being open. One has to consider a few things like:
- Not all rides can open because of social distancing guidelines.
- Any ride that requires 3D glasses cannot operate for the time being.
- Parks might have to limit attendance.
- Social distancing will make lines appear longer and could make wait times longer.
- The expenses associated with Disney might not be worth a “lesser” experience.
There are also health concerns that will likely keep a lot of tourists and visitors away until it is safe to be in a theme park setting. At the very least, some are going to wait until there is a vaccine available, but that might be at least a year away.
In all likelihood, the stay at home orders in California and Florida will lift before 2020 is over and then Disney will be left to make the decision for itself. Hodulik believes it and other companies, like Universal Studios, will decide it makes more financial sense to wait, but that does not mean that's what they will do. Either way, the theme park experience will not be the same when these parks do reopen and visitors will be taking a risk.
Source: USA Today