Will Disneyland USA suffer? ALL Of Disney's Theme Parks Now Closed - Reopening Dates Unknown

[Ismael Flores]

China is a wonderful country.

Also I doubt this will have much effect on the US parks. Disney will take a net loss from this but nothing extreme.

I agree, China is an amazing country and also agree that effect will not be felt here as much.

We go thru a major outbreak every so many years and for the most part they seem to go away pretty rapidly.

 

[Ismael Flores]

Like many things, this Coronavirus seems to be blown a tad out of proportion. It's basically a bad flu, and like all flu viruses if you have poor health to start with you are going to be hit hard and perhaps die from it.

Exactly, like i mentioned before we go thru this every so many years then it all disappears just as fast as it appeared.

we have doctors all saying different things and now even Dr Oz for some odd reason is involved.

according to the CDC up to 56,000 people die a year from the regular flu. Even with those numbers we do not see the panic we see with this virus that pop up every decade

 

[TP2000]

According to the CDC up to 56,000 people die a year from the regular flu. Even with those numbers we do not see the panic we see with this virus that pop up every decade

No kidding!

Funny Story: This afternoon I was out running errands, and I went down to Target. As I pondered light bulbs in the back of the store there was this typical Villa Park/Orange Real Housewife; Late 30's and attractive but obviously Botoxed and coiffed, wearing yoga pants, simultaneously clutching an iPhone 11 and the hand of her tow-haired moppet who was staring at cartoons on his own Kiddy Screen to avoid the real world at such a young age, and she was becoming increasingly agitated at the 50-ish Target Lady she had flagged down in the small hardware section across from the light bulbs.

This Real Housewife began a tempered yet obnoxious rant about how they were out of face masks and she had already been to two Home Depot's and no one has any face masks left and how incompetent are the Target buyers who should be able to overnight in thousands of extra faces masks to protect the children?!?! (The only thing missing from this annoying woman's rant was the obligatory "I need to speak with your manager!" line.)

I was thisclose to stepping in, but the Target Lady calmly says "Well, we all die. But have you tried Amazon?"

The Real Housewife blinked twice and said "Oh, I didn't think of Amazon. Thanks." and she wanders away and doesn't even address the "We all die" comment. I had to stifle myself from laughing out loud.

I would have loved to have bought that Target Lady a drink and a face mask.

 

[Darkbeer1]

Flight leaving center of coronavirus outbreak in China bound for Ontario International Airport

Passengers on a chartered jet leaving Wuhan, the epicenter of the virus outbreak, are expected to arrive in Ontario Wednesday and may remain at the airport up to two weeks for observation, a county…

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Threat of a coronavirus outbreak in Southern California? Here’s what you need to know

Of the five confirmed cases in the U.S., two are in Southern California but public health officials here say there’s no need to panic.

www.dailybulletin.com

 

[el_super]

They aren't that stupid. Disneyland is on reclaimed land. If it wasn't for HKDL, the land wouldn't exist.

Doesn't really matter how the land got there, just that it is there. And sitting empty. That's a huge problem for the HK government to defend the big empty space not being used when there is essentially a housing shortage.

There is one possible arrangement. HK Gov't can decide on a leaseback arrangement. Disney can take on all responsibility and profits, while the gov't gets rent for Disneyland and the land. No more risk for the HK Gov't.

But while the park is underperforming, Disney would have absolutely no leverage in a negotiation. Any change to the current deal would basically result in a more favorable deal for the HK Government, and most likely one Disney couldnt support. Being contractually obligated to build second gates is how the studios in Paris got built. It's not pretty. Disney knows they can't justify building the second gate while the first is barely making any money.

I suppose the scenario above could play out where Disney takes complete control of HKDL, but it would cost them the expansion space for the second gate and having high rise housing built in front of the park (free firework shows!).

 

[Sirwalterraleigh]

They will totally use that closed time as an excuse to remove things from US parks and "save money". How often has US parks suffered because of problems with international parks? I'm looking at you DLP.

Key difference being they now own Paris...kicking and screaming

 

[Phroobar]

Key difference being they now own Paris...kicking and screaming

Only recently did they acquire it. Now they have to rebuild it due to decades of neglect. That takes money away from the US parks again.

 

[Ismael Flores]

No kidding!

Funny Story: This afternoon I was out running errands, and I went down to Target. As I pondered light bulbs in the back of the store there was this typical Villa Park/Orange Real Housewife; Late 30's and attractive but obviously Botoxed and coiffed, wearing yoga pants, simultaneously clutching an iPhone 11 and the hand of her tow-haired moppet who was staring at cartoons on his own Kiddy Screen to avoid the real world at such a young age, and she was becoming increasingly agitated at the 50-ish Target Lady she had flagged down in the small hardware section across from the light bulbs.

This Real Housewife began a tempered yet obnoxious rant about how they were out of face masks and she had already been to two Home Depot's and no one has any face masks left and how incompetent are the Target buyers who should be able to overnight in thousands of extra faces masks to protect the children?!?! (The only thing missing from this annoying woman's rant was the obligatory "I need to speak with your manager!" line.)

I was thisclose to stepping in, but the Target Lady calmly says "Well, we all die. But have you tried Amazon?"

The Real Housewife blinked twice and said "Oh, I didn't think of Amazon. Thanks." and she wanders away and doesn't even address the "We all die" comment. I had to stifle myself from laughing out loud.

I would have loved to have bought that Target Lady a drink and a face mask.

and i bet you that those face masks will not be the right ones that actually hold back whatever virus or flu is out there

 

[DanielBB8]

Doesn't really matter how the land got there, just that it is there. And sitting empty. That's a huge problem for the HK government to defend the big empty space not being used when there is essentially a housing shortage.

But while the park is underperforming, Disney would have absolutely no leverage in a negotiation. Any change to the current deal would basically result in a more favorable deal for the HK Government, and most likely one Disney couldnt support. Being contractually obligated to build second gates is how the studios in Paris got built. It's not pretty. Disney knows they can't justify building the second gate while the first is barely making any money.

I suppose the scenario above could play out where Disney takes complete control of HKDL, but it would cost them the expansion space for the second gate and having high rise housing built in front of the park (free firework shows!).

The HK Government will defend the contract. They will absolutely not renege on the land use policy.


Disney has quite a lot of leverage. They aren’t newbies. Such agreements benefit Disney. I already mentioned the appearance of double dipping. HK government already complained about it. The worst thing that could happen is Disney leaving the deal. Every IP would be snatched up leaving HKDL barren. The investment becomes worthless.

The second gate will happen despite the pressure on building housing. It’s the matter of how much more the HK government will want to invest. These deals benefit Disney. The cost to build is spread out and Disney benefits from royalties and management fees, and Imagineering costs. Then when it loses money on the weight of Disney’s cut, Disney takes over and makes more money.

 

[DanielBB8]

Only recently did they acquire it. Now they have to rebuild it due to decades of neglect. That takes money away from the US parks again.

Suddenly, Disney finds the money not only for neglected maintenance, but also for expanding the Studios park. It was always profitable. Disney’s cut artificially made the park report a loss. Creative accounting. US parks are not getting cuts. They are getting expensive upgrades.

 

[Monorail_Orange]

@wdwmagic is reporting he's alreading starting to hear rumors of belt tightening in the swamps in response to the Chinese park closures. He's got a new thread about it in the WDW News and Rumors section. Sounds like @TP2000 still has his finger on the pulse.

 

[Sirwalterraleigh]

Only recently did they acquire it. Now they have to rebuild it due to decades of neglect. That takes money away from the US parks again.

But they don’t own the Chinese parks...that’s the difference.

Nobody claimed Fukushima damage cost Disneyland rides - after all.

 

[Phroobar]

But they don’t own the Chinese parks...that’s the difference.

Nobody claimed Fukushima damage cost Disneyland rides - after all.

Many Disneyland budget cuts have been directly contributed to Shanghai's opening and Hong Kong's poor performance.

Domestic Disney Parks Reportedly Suffering Financial Issues Due To Shanghai Disneyland

Shanghai Disneyland is currently scheduled to open in June of this year, and it will be the first mainland China Disney resort. Right now, the gigantic park is hoping for that opening, but some financial issues and delays may cause that to be pushed back a bit. Well, reports are now coming out...

www.inquisitr.com

 

[el_super]

Many Disneyland budget cuts have been directly contributed to Shanghai's opening and Hong Kong's poor performance.

Domestic Disney Parks Reportedly Suffering Financial Issues Due To Shanghai Disneyland

Shanghai Disneyland is currently scheduled to open in June of this year, and it will be the first mainland China Disney resort. Right now, the gigantic park is hoping for that opening, but some financial issues and delays may cause that to be pushed back a bit. Well, reports are now coming out...

www.inquisitr.com

Unconfirmed reports. Disney never stated anything officially and everything else is just rumor and hearsay. There's no way at all to know if spending cuts at DLR are due to China, softness after RotR opening or AP prices being too high.

 

[John park hopper]

But they don’t own the Chinese parks...that’s the difference.

Nobody claimed Fukushima damage cost Disneyland rides - after all.

Disney was involve in a joint venture suppling money and has a 43% interest. What does that mean? i'm not a business person

 

[brettf22]

It's more than that. Overuse of hand sanitizer kills the good bacteria on your skin and can actually make your body immune to antibiotics which is really bad when you really need to take them.

And in context of preventing the spread of coronavirus and other viruses, the FDA just told Purell to stop claiming their products can eliminate the flu, since there have been no FDA approved clinical trials proving efficacy against viruses such as the flu, coronavirus, etc.

https://www.cnn.com/2020/01/27/business/fda-purell/index.html

It seems a 90% alcohol formula is needed to kill most viruses, but most hand sanitizers are 70%.

 

[DanielBB8]

Warm water and soap works best, but wash for at least 5 minutes.

 

[Darkbeer1]

Disney was involve in a joint venture suppling money and has a 43% interest. What does that mean? i'm not a business person

It means the HK and Shanghai parks are partnerships. The Chinese/HK government provided land and money, Disney provided expertise and other items, and maybe some cash to build things.

So the revenues collected from the parks are allocated to things, such as labor costs, Food and Merchandise purchases, and royalty fees that are paid to Disney. Any remaining money (gross profit) is allocated based on a formula in the partnership agreement, some goes to a fund for future products, other funds are then split between the partners, the Chinese Government and Disney.

If you compare it to a Corporation (aka Disney), it would be like the Chinese Government having 57% of the stock, and Disney 43%. So the Chinese Government is the majority shareholder, and gets to make the decisions. Disney has the partnership agreement that allocates certain decisions to them.

 

[Sirwalterraleigh]

Disney was involve in a joint venture suppling money and has a 43% interest. What does that mean? i'm not a business person

It means the Chinese government owns everything...Disney agreed to pay the ransom to access that “huge” market that had little use for western fables

 

[Genie_naughty_whispers]

France is flying its residents in Wuhan, China with a non stop flight back to France then isolating them 14 days in France in a location before they can go back to their families. Good move.

who would have thought the French would do something that intelligent