Walt Disney Co. will kick off its strategy next week to begin restoring its lucrative parks business that has suffered USD 1 billion in lost profits from the coronavirus-led shutdown. Disney said on Tuesday it will reopen its Shanghai Disneyland park on May 11 but severely limit the number of guests and enforce strict social distancing measures on rides and in restaurants.
“We will take a phased approach with limits on attendance using an advanced reservation and entry system, controlled guest density using social distancing and strict government required health and prevention procedures,” Disney Chief Executive Officer Robert Chapek said on a conference call with analysts after reporting second-quarter earnings. “These include the use of masks, temperature screenings and other contact tracing and early detection systems.”
Executives said they have “limited visibility” over the timing on when other parks, stores and the company’s cruise line would reopen. “We would not reopen any park unless we can make at least a positive contribution to that overhead and operating profit level,” he said.