Attractions Management Issue 1 2020

Page 22

THEME PARKS NEWS ChInA

Disney predicts US$280m coronavirus hit Disney has predicted that

Kong has also struggled with

the coronavirus outbreak will

ongoing issues, as civil unrest

cost its parks division an

in the region affects visitation.

estimated US$280m after

"At Shanghai Disney Resort,

the operator shut down both

we estimate the closure of the

its Shanghai and Hong Kong

park could have an adverse

resorts as a result of the

impact on Q2 operating income

quickly-spreading virus.

of approximately US$135m,"

Coronavirus, which originated in Wuhan, has forced the closure of a large number

said Christine McCarthy, Disney's chief financial officer. "We were already seeing

of attractions in China, as

a significant decrease in

authorities try to halt the

visitation to Hong Kong, so

spread of the outbreak. The

in aggregate, we estimate

country has more than 75,000

these two factors could result

confirmed cases in China alone,

in a decline in Hong Kong

with 25 other countries also

Disneyland's operating income

reporting infected patients.

of about US$145m for Q2."

The closures are directly

The magnitude of the impact

affecting a quarter in which

is highly variable, depending on

Disney would typically see

how long the outbreak lasts,

strong attendance in its Asian

with Disney's loss estimate

parks, due to the timing of

based on a two-month period.

the Chinese New Year. Hong

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■■ The closures will have a heavy affect on Disney numbers

The recent closure of our parks will negatively impact second quarter and full-year result Christine McCarthy

DUBAI

DXB implements cost-cutting measures at theme parks DXB Entertainments, which runs the Legoland, Bollywood and Motiongate theme parks in Dubai, says it sees encouraging signs in its latest financial results, despite reduced attendances in 2019 compared to 2018. The fourth quarter of 2019 saw the company make its first-ever quarterly profit

■■ Legoland Dubai is part of the DXB portfolio

before earnings of AED2m (US$540,000),

Our focus is now on delivering profitability on a full-year basis Mohamed Almulla

22

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while earnings for the full year were

2020," said Mohamed Almulla, CEO and

a loss of AED149m (US$40.6m) – a

managing director of DXB Entertainments.

38 per cent improvement on 2018. "Our efficiency programme is delivering

"Our focus is now on delivering profitability on a full-year basis by achieving

good results, with year-on-year savings in

growth, specifically through initiatives to

operating costs of AED172m (US$46.8m,

drive visitation from our core international

€42.9m, £36.2m) in financial year 2019,

markets and through hotel strategy."

with further savings to be realised in

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