On March 16, 2020, The Walt Disney Company took the unprecedented step of closing all eleven of its theme parks across Asia, Europe, and North America as a precautionary measure against the coronavirus. The move followed earlier closures of its Asian parks in January as confirmed cases increased, while the company had initially attempted to keep its U.S. and French parks operational.
According to a company statement, the shutdown of flagship destinations—including Walt Disney World in Florida, Disneyland in California, and Disneyland Paris Resort—was deemed necessary to protect both guests and employees. Additionally, Disney Cruise Line announced it would suspend all new departures starting March 14 through the end of the month.
Financial Fallout for Disney’s Tourism Operations
The worldwide closure represents a major setback for Disney’s tourism business, which generated approximately $26 billion in sales at its Parks, Experiences and Products division in 2019. Since the coronavirus outbreak escalated into a pandemic, the company’s shares have dropped more than 20%. Disney’s Chief Financial Officer, Christine McCarthy, acknowledged that the outbreak has significantly affected the business, noting the company is taking steps to mitigate the impact and ensure its long-term health.
Disney has assured its cast members they will receive pay throughout the shutdown period. Domestic employees at Walt Disney Studios, Walt Disney Television, ESPN, and direct-to-consumer, parks, and products divisions have been urged to work from home.
Government Endorsement and Federal Response
Government officials have commended Disney’s decision. Dr. Anthony Fauci, Director of the National Institute of Allergy and Infectious Diseases, described the closure as a prudent move that reflects the company’s commitment to health and safety. The U.S. government has implemented travel restrictions and financial support for affected businesses. President Trump stated that the administration is collaborating with companies like Disney to provide necessary resources during the crisis.
Impact on Film Releases
The pandemic has also disrupted Disney’s movie schedule. The company delayed the release of “Mulan,” one of its major films for the year, originally set for March 27. Alan Bergman, Chairman of Walt Disney Studios Motion Picture Group, stated that while the company is committed to bringing the film to global audiences, it must do so safely and responsibly. The delay compounds challenges from theater closures in China and other countries.
Preparing for Recovery
As the situation evolves, Disney is planning for recovery. Hotels at both Walt Disney World and Disneyland Paris will remain open until further notice. The company is developing new safety protocols to protect guests and employees. Bob Chapek, Chairman of Disney Parks, Experiences and Products, emphasized the commitment to providing a safe and magical experience in a responsible manner. Disney is also exploring digital channels and social media to engage with fans during the pandemic.
