Chapek: Vaccination rates are key to future of Disney Parks, social distancing
The future of the Disney Parks for the remainder of the year will be determined by the rate of COVIC-19 vaccinations of the public, Disney CEO Bob Chapek said during the Disney’s quarterly earnings call.
The coronavirus outbreak has cost the Disney Parks, Experiences and Products division around $2.6 billion in lost operating income during the First Quarter of Fiscal 2021, which ended on jan. 2.
Operating income at Parks, Experience and Products declined by $119 million from the prior years. During the first quarter only Walt Disney World and Shanghai Disney were open for the entire time. Disneyland and the Disney Cruise Line were closed for the entire quarter. Disney Paris was open for one-third of the quarter and Hong Kong Disneyland was open for two-thirds of the quarter.
In addition, Disney said the entire company anticipates spending $1 billion this fiscal year in additional costs to address government regulations and implement safety measures for employees, talent and guests.
For the Parks division, vaccinations and reaching herd immunity is going to be a key factor when making future decisions on capacity and reopening parks. Chapek said there is no indication when Disneyland will reopen.
“We have ample demand for our parks despite everything that is happening with the pandemic,” Chapek said. He added how the engineering staffs at the parks have worked tirelessly and found various ways to help increase capacity of rides and help give guests a good time.
This has been done with the use of plexiglass in lines and on attractions to increase capacity and help cut down on wait times.
Capacity at Disney World remains at 35% of full capacity, Disney CFO Christine McCarthy said. “We are currently operating at 35 percent of full capacity,” the team have found ways to do this and still maintain all the protocols for social distancing.
The social distancing will most likely be with use at least until the end of the year, Chapek said. “We have no doubt that when we reopen up the parks that were closed, or increase the capacity, that we will have some level of social distancing and mask wearing for the remainder of this year, that is our expectation,” Chapek said,
Chapek cited, Dr. Anthony S. Fauci, President Joseph Biden’s chief medical adviser for COVID-19, saying that most members of the general public could become eligible to get the coronavirus vaccine as soon as April. ” If that happens that is a game changer and that could accelerate our expectations and give people the confidence they need to come back to the parks,” he said.
However, there will be some overlap with continued mask wearing and social distancing “until we know we’ve hit herd immunity,” Chapek said.
What that number is for herd immunity at this point is not defined at this point by the Centers for Disease Control and Prevention.
“Experts do not yet know what percentage of people would need to get vaccinated to achieve herd immunity to COVID-19,” the CDC writes on its website. “Herd immunity means that enough people in a community are protected from getting a disease because they’ve already had the disease or they’ve been vaccinated. Herd immunity makes it hard for the disease to spread from person to person, and it even protects those who cannot be vaccinated, like newborns. The percentage of people who need to have protection in order to achieve herd immunity varies by disease. CDC and other experts are studying herd immunity and will provide more information as it is available.”
Once that number is reached, Disney will cut back on the social distancing. “Do we believe we will be in the same state of six-foot social distancing in 2022, absolutely not,” Chapek said.
