Just saw this in the Orlando Sentinal...
War on terror shrinks Disney crowds
The recent orange alert put a dent into the travel plans of many people.
By Robert Johnson
Sentinel Staff Writer
March 5, 2003, 12:00 AM EST
Federal authorities' recent orange alert derailed the tentative comeback of Walt Disney Co.'s Orlando theme parks, company Chairman Michael Eisner said Tuesday.
And that doesn't bode well for the upcoming spring break season, industry experts said.
Walt Disney World imposed a hiring freeze and began cutting back workers' hours about two weeks after the nationwide orange alert was announced in early February. The alert was reduced to yellow last Thursday.
"We were doing very, very well and, worldwide, when the orange alert hit we saw an immediate reaction," Eisner said in an interview on CNBC television.
Disneyland in Southern California was not as affected because more of its visitors live nearby and arrive by car. But "at Walt Disney World, where people have to make advance reservations or fly," Eisner said, "or Disneyland in Paris, where you have to fly, they're more tentative."
Still, he added, "It's not a debacle."
The orange terrorism alert's effect on Disney World underscores the fragility of the current travel market, said John Robinett, senior vice president of Economics Research Associates, a Los Angeles entertainment consulting firm.
"I believe that consumers' perception of safety was shaken when we went to level orange," Robinett said. "People don't think about going to Disney World when the government is telling them to buy duct tape and seal off their windows."
And the federal government's return to the less-urgent yellow alert may not quickly alleviate travelers' concerns, said Jordan Rohan, a securities analyst at SoundView Technology Group.
Rohan predicted that continuing concerns over an outbreak of war with Iraq will likely cause Disney World attendance to continue its fade in March.
Disney shares fell 75 cents, or 4.5 percent, to $16.05 on the New York Stock Exchange -- their biggest single-day decline since October.
Many of Disney World's 40,000 hourly workers are concerned about their jobs. Cutbacks in schedules have varied from department to department at the attraction's four theme parks, its hotels and shopping areas. Employees have accepted that calmly -- for now, and for the most part.
"I give my workers and the members credit that they understand there are going to be cutbacks when attendance is impacted by economic and security issues," said Margie Engels, president of the Hotel Employees and Restaurant Employees Union Local 737 at Disney World.
Jacquee Polak, a Disney World spokeswoman, said the orange alert's effect on Orlando travel was predictable.
"As we have said over and over again, any time there is a terror alert, it has an impact on our business," she said. ". . . It should not be a surprise to those who follow our business that there will be different impacts on different parks given the difference in their attendance mix -- with DLR [Disneyland Resort] attracting more local attendance in 'drive' markets and WDW [Walt Disney World] more international [attendance] from 'fly' markets."
Still, Engels said that many of her 4,000 union members are disappointed with one employment practice.
"What's upsetting to them is that Disney is currently bringing in 1,200 college students right now as temporary employees, and at the same time cutting back the regular workers' hours," she said.
Disney World officials have previously said that the hiring of college temps is unrelated to the amount of work available to permanent hourly workers. They say the hiring of college students is important because it provides them with income for their educations and with valuable work experience.
Robert Johnson can be reached at 407-420-5664 or rwjohnson@orlandosentinel.com.
Copyright © 2003, Orlando Sentinel
Are you still planning on making your trip?
War on terror shrinks Disney crowds
The recent orange alert put a dent into the travel plans of many people.
By Robert Johnson
Sentinel Staff Writer
March 5, 2003, 12:00 AM EST
Federal authorities' recent orange alert derailed the tentative comeback of Walt Disney Co.'s Orlando theme parks, company Chairman Michael Eisner said Tuesday.
And that doesn't bode well for the upcoming spring break season, industry experts said.
Walt Disney World imposed a hiring freeze and began cutting back workers' hours about two weeks after the nationwide orange alert was announced in early February. The alert was reduced to yellow last Thursday.
"We were doing very, very well and, worldwide, when the orange alert hit we saw an immediate reaction," Eisner said in an interview on CNBC television.
Disneyland in Southern California was not as affected because more of its visitors live nearby and arrive by car. But "at Walt Disney World, where people have to make advance reservations or fly," Eisner said, "or Disneyland in Paris, where you have to fly, they're more tentative."
Still, he added, "It's not a debacle."
The orange terrorism alert's effect on Disney World underscores the fragility of the current travel market, said John Robinett, senior vice president of Economics Research Associates, a Los Angeles entertainment consulting firm.
"I believe that consumers' perception of safety was shaken when we went to level orange," Robinett said. "People don't think about going to Disney World when the government is telling them to buy duct tape and seal off their windows."
And the federal government's return to the less-urgent yellow alert may not quickly alleviate travelers' concerns, said Jordan Rohan, a securities analyst at SoundView Technology Group.
Rohan predicted that continuing concerns over an outbreak of war with Iraq will likely cause Disney World attendance to continue its fade in March.
Disney shares fell 75 cents, or 4.5 percent, to $16.05 on the New York Stock Exchange -- their biggest single-day decline since October.
Many of Disney World's 40,000 hourly workers are concerned about their jobs. Cutbacks in schedules have varied from department to department at the attraction's four theme parks, its hotels and shopping areas. Employees have accepted that calmly -- for now, and for the most part.
"I give my workers and the members credit that they understand there are going to be cutbacks when attendance is impacted by economic and security issues," said Margie Engels, president of the Hotel Employees and Restaurant Employees Union Local 737 at Disney World.
Jacquee Polak, a Disney World spokeswoman, said the orange alert's effect on Orlando travel was predictable.
"As we have said over and over again, any time there is a terror alert, it has an impact on our business," she said. ". . . It should not be a surprise to those who follow our business that there will be different impacts on different parks given the difference in their attendance mix -- with DLR [Disneyland Resort] attracting more local attendance in 'drive' markets and WDW [Walt Disney World] more international [attendance] from 'fly' markets."
Still, Engels said that many of her 4,000 union members are disappointed with one employment practice.
"What's upsetting to them is that Disney is currently bringing in 1,200 college students right now as temporary employees, and at the same time cutting back the regular workers' hours," she said.
Disney World officials have previously said that the hiring of college temps is unrelated to the amount of work available to permanent hourly workers. They say the hiring of college students is important because it provides them with income for their educations and with valuable work experience.
Robert Johnson can be reached at 407-420-5664 or rwjohnson@orlandosentinel.com.
Copyright © 2003, Orlando Sentinel
Are you still planning on making your trip?
