Article: SARS and the parks

[Luv2Roam]

Disney warns SARS may worsen slump at theme parks
Reuters, 04.11.03, 1:11 PM ET

LOS ANGELES (Reuters) - Fear of SARS, the pneumonia-like illness sweeping Asia, could deliver another blow to already slumping visits to Walt Disney World, No. 1 theme park operator Walt Disney Co. told securities regulators.

Burbank, California-based Disney recently cut its profit target for 2003, citing the effects of the U.S. war on Iraq and terrorism fears on travel as well as the slow economy. It said Walt Disney World in Florida, was particularly vulnerable because it attracted more visitors from foreign countries.

Disney repeated those concerns in the filing with securities regulators late Thursday, which outlined terms and risk factors to a debt offering, and it also noted the potential for SARS, or Severe Acute Respiratory Syndrome, to disrupt business.

"Current concerns relating to severe acute respiratory syndrome, or 'SARS,' and uncertainty surrounding the transmission of this illness, may also contribute to a reluctance to travel," Disney said.

"This tends to adversely affect our resort locations, and in particular our largest resort location, Walt Disney World, where our guests tend to travel from farther away and stay longer."

Disney's main parks are Florida's Disney World and Disneyland in California, and it has interests in parks in Paris, Tokyo and a Hong Kong park that is being built.

Asian travel has declined sharply as SARS, which has no cure so far, has infected more than 3,000 worldwide, primarily in China and Hong Kong, and killing 114.

Disney's ABC television network also faces higher costs and lower advertising due to the war on Iraq, the company said.

Copyright 2003, Reuters News Service

 

[YoHo]

YES, YES, IT's not our Fault. Nothing is ever our Fault. Thank the good lord for delivering us a new excuse to close earlier and take away that third Chicken finger.



Dear Lord, I don't think I have any magic left in me at all, its all cynacism and Sarcasm. Stupid Eisner.

 

[grinningghost]

It's not stopping me.

 

[Bob O]

They will use any excuse possible to stop laying blame where it truely belongs, on their doorsteps!!

 

[RoqueC]

Well, it won't stop me from going.

 

[Buzz2001]

Public health experts think that SARS is spread by close contact between people. SARS is most likely spread when someone sick with the disease coughs droplets into the air and someone else breathes them in. It is possible that SARS also can spread more broadly through the air or from touching objects that have become contaminated.

Why is everything that happens in the world Disney's or Eisner's fault. Can't you just except it for what it is? People are scared of contracting this deadly disease. 100 people have died to date from it.

 

[Luv2Roam]

Yeah -- SAR -- that's the ticket. And -- uh -- the sun was in our eyes. Yeah! The SUN! And earthquakes. We might have some earthquakes. Oh yeah! And hurricane season is approaching!

 

[YoHo]

Can't you just except it for what it is?

Because no other Vacation Destination in the entire country has said anything about it. Vegas isn't worried, National parks, not worried.

Why is it Disney is the only one who is worried?
Becuase they are using it as an excuse to trim back even further.

 

[Dznefreek]

Because no other Vacation Destination in the entire country has said anything about it. Vegas isn't worried, National parks, not worried.

Nuff said.......................

Why is it Disney is the only one who is worried?

Ditto...........

 

[grinningghost]

Originally posted by YoHo
Because no other Vacation Destination in the entire country has said anything about it. Vegas isn't worried, National parks, not worried.

Why is it Disney is the only one who is worried?
Becuase they are using it as an excuse to trim back even further.

Don't be so sure...

Las Vegas Preparing for SARS

 

[YoHo]

That's a nice article and all, but it didn't say a single thing about any of the Casino's expecting fewer guests, or losing money. It was about screaning people inbound from Asia. So Yeah, some Airport people care, but none of the entertainment comapanies, So again I ask, why is Disney the ONLY company worried about it?

 

[Planogirl]

I think it's a combination of both problems; SARS fears AND Disney cutbacks. Yes, SARS might affect attendance a bit but attendance was dropping long before SARS reared its ugly head. And yes, the war may be affecting attendance but again, attendance was down prior to the war and prior to all of the other reasons.

Just my opinion. And I will also continue to go too, well maybe not as often as before but my attendance decline has nothing to do with the war, terrorists, SARS or whatever. Mine all rest with Disney.

 

[disney1990]

Yes, everybody should be concerned about SARS, but not paniced.

How many of you would get a SARS vacination if it were available tomorrow?

How many of you got a flu shot this past winter?

36,000 people in the United States alone dies from the flu last year.

Just something to think about.

 

[mcnuss]

Because no other Vacation Destination in the entire country has said anything about it. Vegas isn't worried, National parks, not worried.

National Parks do not file with the SEC.

Are you so sure that none of the publicly held corporations that own casinos did not include similar language in their filings?

Love it or hate it, Disney as a publicly held corporation is under a finduciary duty to its shareholders to report any event that may -not will, but may - affect profitability or shareholder value.

I am not saying that there are not other reasons within the company's control for attendance to be down

 

[YoHo]

Are you so sure that none of the publicly held corporations that own casinos did not include similar language in their filings?

SARS is big big news. In fact its just about the ONLY News story that they bother to shoe-horn in between war coverage. Those News agencies ALWAYS poor over ANY company missive or public filing. ALWAYS!

Thus, I feel safe in saying that if a news story on it doesn'texist, they aren't worried.


YET!

 

[off2disney]

It's not stopping me.

I have heard several newscasters say that if it wasn't for the War, the SARS story would be the biggest newsmaker of the year.
(They'd be jumping on it like a duck on a June bug!)

By the way, I get my flu shot every year!

 

[mcnuss]

...if it wasn't for the War, the SARS story would be the biggest newsmaker of the year...

Kind of reminds you of the Norwalk Virus from last year....

 

[KNWVIKING]

While I agree that WDW may be looking to justify low attendance figures at the expense of a SARS scare,9/11,war, economy, weather, terrorism,etc, it doesn't mean that these factors are NOT a cause for lower attendance. There is an article in the NY Daily News stating how recent events have decimated their economy. I'm sure Eisner is using these events as a way to divert blame away from himself, but there is no disputing the fact that the record attendance figures of the past coincided with a booming economy,no war,no 9/11,no SARS,no terrorism.

IMO, Disney is stuck in an ugly catch 22: Attendance is down,have to cut cost. Cut cost,drives attendance down lower. Cut more costs.............

One expense we all seem to be overlooking since 9/11 is all the security measures and manpower. Now they are building perminate security booths. I don't know what these dollar figures are, but I'm sure they are pretty high. Wether or not they are wasting money doing this is a whole different debate.

 

[mitros]

Could it be that people are staying away in droves because of the ever increasing prices for admission? But then again, I find it hard to beleive business is off there. I just attempted to make a reservation for OKW for a studio sometime in May. All I was able to get was a one bedroom {an upgrade} first week in May. The CM I spoke to said that there are few openings at OKW in May. Business off? Not in May, it seems

 

[KNWVIKING]

OKW, being a DVC resort, should not be used as a benchmark for how busy WDW is. As a sold-out DVC resort, it is virtually always booked,especially for last minute ressies.

As for price increases, the major theme parks all raise about $2.00 per park for a one day ticket. This year, US/IOA & SW did, WDW did not.