Possible fallout from Brexit for Disney

[AquaDame]

My initial thought is simply, Disney Vacations will become much more expensive for our British cousins to take since already the pound is down 11% in off hours trading against the dollar with this vote.
Anyone have the gouge on how much of Disney's numbers are driven by UK residents? I know it's substantial, and Florida tourism in general has benefitted from a strong Pound. I wonder how this will trickle down through bookings, DVC ownership, etc?
I have more questions than answers, just curious what others might think. How say you?

The pound will bounce back, at least a little, this downturn was expected as markets don't like uncertainty. UK travel to the US won't change much, at least not in the short term. No one knows what the terms of the brexit will be, though the EU is hoping they can hurry it along and not wait for October to start it (when there should be a new Prime Minister in place to oversee the negotiations). Long term anything can happen, so we'll wait and see.

 

[SgtTibbs]

I suppose it would be in poor taste for Epcot to put up bag check lines for entering the UK section.

 

[Dean Marino]

Well? I'm pretty sure WDW prices things in US Dollars. World events MAY either move the exchange rate UP, or DOWN, for any particular currency. All just opinion.... but I suspect our neighbors to the North (Canada) have suffered FAR more.... Pretty sure the exchange rate is now $1.30 Canadian to $1.00 US . Those poor folks have seen an effective 30% or so price increase . Oh - no.... I don't live in Canada .

 

[Gari14]

We have to remember that this will take at least two years for us to officially leave the EU once article 50 has been triggered. Then its all about re-negotiatite for a "withdrawal agreement" If the pound recovers (which it will, but not near where it was before all this went down) then I don't think it will effect the Disney parks in Florida too much. Maybe in the short term, but once its pound has settled, I don't think it will personally. We'll probably end up getting better package deals than what we have now if UK tourists do decide to stop going to WDW for example as Florida relies massively on UK tourists and in turn, Disney will want to get us back over to Florida to support their economy.

 

[gEar up]

I don't think Disney is the issue when it comes to UK tourists, they would love to sell as many on-property vacations as they can, regardless of economic conditions back home. But make no mistake, Disney has no loyalty to any customer beyond getting their money out of your pocket, and into theirs. So as long as the margins are there, you'll be their favorite tourist...until you're not.

 

[Gari14]

I don't think Disney is the issue when it comes to UK tourists, they would love to sell as many on-property vacations as they can, regardless of economic conditions back home. But make no mistake, Disney has no loyalty to any customer beyond getting their money out of your pocket, and into theirs. So as long as the margins are there, you'll be their favorite tourist...until you're not.

You're right in what you're saying, but Disney have to try and keep the UK tourist market as they make too much money from them to avoid it. Can you imagine if people from the UK stopped going to WDW for example? Thats a huge loss to Disney whichever way you look at it. It won't come to that as the pound will settle at some point, but its still something that could happen in the future. Just in 2007, 1m British tourists went to Orlando and while there have been drops in the years that follow, you can't ignore the facts that UK tourism and WDW have a good healthy relationship and although Disney wouldn't admit it, they'd be very worried if UK holidaymakers decided to go elsewhere. If you have been to London, you'll see how important the UK market is to WDW and Orlando in general as there are advertisements EVERYWHERE. When I was in London just last month, I was shocked just how much there was that was advertising both WDW and Orlando. They aren't stupid as they know how much money it brings in and with it, its a huge loss to tourism in Orlando regardless of which way you look at it.

 

[gdrj]

My initial thought is simply, Disney Vacations will become much more expensive for our British cousins to take since already the pound is down 11% in off hours trading against the dollar with this vote.
Anyone have the gouge on how much of Disney's numbers are driven by UK residents? I know it's substantial, and Florida tourism in general has benefitted from a strong Pound. I wonder how this will trickle down through bookings, DVC ownership, etc?
I have more questions than answers, just curious what others might think. How say you?

I think that Disney vacations will be one of the less important issues that come from Brexit. The potential world economic, political impact, National Security, Scotland's potential departure from UK etc...could impact all of us.

 

[luisov]

It should be interesting for both Paris and Orlando.... And for the rest of the world, anyway.

 

[kandb]

When world economies get a cold...Florida gets the flu (adapted saying for the purpose at hand)

We are again in a trumped up bubble
World...US real estate is overvalued again, debt is climbing again at historic levels, and the "college" bubble is going to wreck the place like a hurricane.

People have just been living it up in this "good" time...the cycle will never be broken...

Not until we stop printing money...nuclear winter type scenario then.

How about our government concentrating on the sickening $21 TRILLION debt. Scary times!

 

[lockedoutlogic]

How about the government concentrating on the sickening $21 TRILLION debt. Scary times!

Yep...throw that shrimp on the Barbie too

 

[Gari14]

It now sounds like other European countries want to leave the EU as well. France, Czech Republic, Denmark and Hungary being the "high risk" ones with the likes of Poland, Netherlands, Austria and Finland currently classed as "medium risk".

 

[Planogirl]

It now sounds like other European countries want to leave the EU as well. France, Czech Republic, Denmark and Hungary being the "high risk" ones with the likes of Poland, Netherlands, Austria and Finland currently classed as "medium risk".

Yes, these countries jumping ship could add even more stress to a jittery world economy. For a while many of us might not be able to afford Orlando vacations no matter where we live.

Hopefully everything will quiet down instead.

 

[lockedoutlogic]

Yes, these countries jumping ship could add even more stress to a jittery world economy. For a while many of us might not be able to afford Orlando vacations no matter where we live.

Hopefully everything will quiet down instead.

Those that control the economy are 100% insulated and frankly...don't care one bit.

The world is gonna change...the problem is it won't want to when it happens. Kicking and screaming.

 

[Gari14]

Yes, these countries jumping ship could add even more stress to a jittery world economy. For a while many of us might not be able to afford Orlando vacations no matter where we live.

Hopefully everything will quiet down instead.

Its an interesting scenario we all find ourselves in. Nobody knows what the future holds at the moment and to be honest, its pretty worrying.

 

[I M Fearless]

As someone who lives in the UK and voted to regain our political independence, we are all more than aware of what we have done and why. Britain is sick and tired of having our government's laws overruled by people abroad. It has been happening increasingly over the past ten years. The EU is a failing project and the quicker it falls apart the better for all of us. Now we have voted to go others will have the courage to follow. It is a question of when not if.

Brexit is unlikely to make a significant difference to guests from the UK travelling to the US for several reasons.

1. The British Economy is doing very well indeed. Unemployment here is at a record low, things are fine. The economy is not going to crash.

2. The main losers from Brexit will be the large multinational corporations not the man on the street.

3. We are all booked up to come to Disney in 2017 and our prices are paid in GBP Sterling through the Walt Disney Travel Company which is a UK based branch of Disney. We do not book or pay in dollars. Disney is a multinational company that operates in many markets and currency variations is a normal aspect of doing business.

4. The GBP against the dollar has fallen significantly since pre 2008 when we could get roughly 2 dollars to a pound. It varies by a great deal from one week to the next, but the overall trend has been a weakening GBP against the USD in the past 8 years, yet more people are going to Disney from the UK than ever before.

5. The comparative cost of a Disney vacation has not increased dramatically over the same timeframe at least in Britain.

6. To be honest, I am more concerned about the number of bus stops at CBR than I am about Brexit. That is how much on the "worry scale" it is for the average citizen. Of course the media love the scare stories but frankly they print what sells papers.

France cannot even run Disneyland Paris successfully. Would you let them have a say in running your country?

Make no mistake, the people of Britain are waking up to Christmas morning on a daily basis so far. The sense of optimism we have seen in the past 48 hours has been unlike anything I have experienced in my lifetime.

 

[anthony2k7]

The biggest concern for me right now and possibly Disney as well is the hope that the French play nicely during the negotiations. They've already started threatening to abolish the treaty where they control the border to hold back the migrants. If they open that border and start letting anyone through then we will have to react which may mean closing the tunnel at least temporarily. That would decimate visitor numbers to DLP. Likewise any other silly games by the French may also affect Brits going to DLP. Any significant drop in visitors there may be the final nail in the coffin for DLP considering its other never ending financial issues.

If any of that happens, then Shanghais impact on WDW will soon be forgotten...

 

[Gari14]

1. The British Economy is doing very well indeed. Unemployment here is at a record low, things are fine. The economy is not going to crash.

I do agree with what you've said, but my only issue with it all is what you said in point no 1. Yes, our economy is doing very well, but that was when we were part of the EU. If trade negotiations fall dramatically with countries within the EU and the US, then the British economy and unemployment at a record low could change and change in a big way. Im not any kind of financial expert and nor do I claim to be, but that is one worry I have about how this has all gone down. Its not so much the 'now' I'm worried about, but more the future for us and for the next generation.

 

[lockedoutlogic]

If what's been spun in the US is correct (not that I'm saying it is)...brexit was fed by a kind of new Xenophobia that is most likely linked to the US created crisis in the Middle East.

Economically is it a good idea? Time will tell.

But from the surface...there's a real ugly "Britain for Britain" and "nobody's gonna tell us what to do" type feel that mirrors some of what is coming out of the ugly US politics now too.

That's just how it seems from across the pond.

Europe and the U.K. just seems to be farther along the evolutionary chart (as usual) than Los estados unidos: trying to "take control back" in a post industrial world that is designed not to allow it.

Call it "globalization"..."free trade"...whatever...
...it's the desire of people to maintain power without building the things you use. It's an international problem. Just how I see it.

 

[rteetz]

I just want to throw out the reminder that discussing politics is against Disboards rules. Let's stay on the topic of how brexit will affect WDW.

Thanks!

 

[lockedoutlogic]

I just want to throw out the reminder that discussing politics is against Disboards rules. Let's stay on the topic of how brexit will affect WDW.

Thanks!

Right...
Close this one down then. This is a 100% political topic.

To try and separate it out is pointless.

Close it up.