LAKE BUENA VISTA, Fla. — Disney just released its first-quarter earnings report, and while the Magic Kingdom is usually a land of sunshine and smiles, a couple of unwelcome guests – Hurricanes Helene and Milton – made their presence felt.
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Remember those stormy days back in late September and October? Well, those hurricanes weren’t just a pain for weekend plans; they actually forced Walt Disney World to close its gates for a day.
So, what kind of impact did these weather woes have on the House of Mouse? Turns out, a pretty significant one. Disney estimates the hurricanes cost them a whopping $120 million. That’s a lot of Dole Whips!
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But it’s not just Disney that felt the pinch. Think about all the hotels, rental cars, and restaurants that rely on tourists flocking to Orlando. When a major attraction like Disney World closes its doors, even for a day, it sends ripples throughout the entire Central Florida economy.
Channel 9 talked to UCF Economist Sean Snaith to get a better understanding of the bigger picture.
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“Tourism is the center of the economy that is usually hardest hit. Yeah, you might shut down for a day or two, but this can cause ripple effects,” Snaith explained.
And those ripple effects can last longer than just a few stormy days.
“The events are short-lived, but the impacts can extend for a month or two after,” Snaith added.
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Now, despite the hurricane-sized headache, Disney’s numbers aren’t all doom and gloom. During their Q1 financial call, execs revealed that while guest spending at U.S. parks actually increased, operating income for those same parks did take a 5% dip. It’s a mixed bag, for sure.
And what about the soon-to-open Universal’s Epic Universe? Is Disney worried about the competition? Not according to CFO Hugh Johnston.
“We did anticipate some small impacts. I think we have it effectively hedged in the guides that we’ve given you. Overall confidence in the experience aspect is high,” Johnston said.
So, even with the weather setbacks and the upcoming competition, Disney remains optimistic. They’re projecting a 6% to 8% increase in operating income for the year ahead. And with new features like the Lightning Lane Premier Pass, they’re clearly hoping to keep guests coming back for more magical moments.
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