New York (CNN Business) – Disney’s tourism business has stopped due to coronavirus.
Disney closed Walt Disney World, its flagship theme park complex in Orlando, Florida, due to the global pandemic. The company also announced the closure of Disneyland Paris and the suspension of all new departures on the Disney Cruise Line. Earlier Thursday, the company said it will close its iconic Disneyland resort in Anaheim, California. The virus, which has spread throughout the world, has now closed the doors of the eleven Disney theme parks in North America, Europe and Asia.
“With great caution and in the best interest of our guests and employees, we are proceeding to close our theme parks at Walt Disney World Resort in Florida and Disneyland Paris Resort, beginning business closure on Sunday March 15, through the end of the month. “A Disney spokesman said in a statement.
Shortly after Disney announced the closure of its Florida parks, Universal Orlando Resort announced that it would also temporarily close its theme parks beginning March 15.
Magic Kingdom at Walt Disney World is the most visited theme park in the world, with more than 20 million visitors in 2018, according to an AECOM report. The company has invested billions in its theme park division, opening two new Star Wars attractions in Florida and California last year. A new game, “Mickey & Minnie’s Runaway Railway,” debuted at Disney’s Hollywood Studios last week.
Parks are a major driver of the company’s expanding entertainment business: Disney generated more than $ 26 billion in sales in its Parks, Experiences and Products division in fiscal year 2019, accounting for 37% of total company revenue.
The closure comes at a time of great transition for Disney. Just 16 days ago, Bob Iger stepped down as CEO and Bob Chapek, whose previous role was president of Disney Parks, was named as his replacement. Disney shares have fallen more than 20% since the change, when the coronavirus has forced the closure of theme parks, delayed the launch of “Mulan” and affected sports broadcasting. Live on ESPN.
In the announcement, Disney added that its hotels at Disney World and Disneyland Paris will remain open until further notice and that it will pay the cast members during the closing period. The company also said it will suspend all new departures on Disney Cruise Line cruises starting Saturday and ending in the month.
The company urged its local employees at Walt Disney Studios, Walt Disney Television, ESPN and its direct-to-consumer divisions, parks and products to work from home.
The sudden closure of Disney parks in Florida and California is just the latest sign of a free-fall tourism industry. But it is also symbolic of how every element of American life is changing amid the pandemic.
“These parks are iconic brands engraved on the culture of U.S and in each one’s childhood, ”Disney shareholder and managing partner of Gullane Capital Partners told CNN Business Trip. “Closing assets on this scale around the world speaks to the severity of this rarely seen health threat.”
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