California theme parks will not make 15% profit

A review of California’s COVID-19 safety regulations announced Friday could allow Disneyland, Universal Studios, Six Flags Magic Mountain and other theme parks to reopen their outdoor rides and attractions on April 1 if they are in coronavirus provinces transfer is low enough. .

Another caveat: in most of the state, parks will have to attend 15% of the capacity – a rate that is so low that industry experts say the parks would certainly not make a profit.

Still, they say, parks will likely embrace the money-losing mode for a while, as they will need time to increase their operations.

“Fifteen percent is not sustainable as an industry level,” said John Gerner, an expert theme park and managing director of Leisure Business Advisors. “But if a transition to full opening … makes sense.”

Under the new rules announced Friday, amusement parks will be allowed to reopen on April 1 with 15% capacity in red-light counties – the second most stringent of California’s four-level road map reopening. A country is ranked in one of four levels based on the number of new COVID-19 cases per 100,000 people, the rate of positive coronavirus tests and an equity measure.

Under the new regulations, the attendance limit rises to 25% of capacity as soon as a country progresses to the third strictest level, orange and 35%, to the lowest level, yellow. The previous rules prohibited the reopening of parks until their homeland reached the yellow level and limited attendance by 25%.

In November, Santa Cruz Beach and Boardwalk became the first theme park in the state to reopen under the previous rules, but it closed after one weekend when COVID-19 cases climbed into Santa Cruz County again.

Los Angeles County (home of Magic Mountain and Universal Studios Hollywood) and Orange County (home of Disney Parks and Knott’s Berry Farm) remain in the most restrictive level, purple, but appear to be near the red level.

Theme park operators praised the change of government, saying the closure of almost the year was a cruel financial blow to the parks, their workers, nearby businesses and the cities that rely on the tax revenue the parks generate.

Since the parks closed last year, most of their workers have basemented or fired. The Disneyland resort in Anaheim has laid off about 10,000 of its nearly 31,000 employees after it closed Disneyland and Disney California adventure parks. More than 1,000 have been reappointed to help staff with a food and shopping event starting March 18.

Gerner and other experts say the theme parks will need time to re-employ and train workers before reopening. Starting with crowds that have only 15% of full capacity will facilitate the transition.

Many of the workers released have found other jobs, which is why theme parks need to employ and train people who have never run a landmark or served food in the area, experts say.

“Everyone is rusty,” said Martin Lewison, a professor of business administration and expert on the theme park at Farmingdale State College in New York. “They must stifle the rust of things.”

Lewison agreed that most theme parks would not make a 15% profit, but he says any revenue is better than none. He also noted that the parks still hold costs associated with taxes, utility bills and maintenance, even when closed.

Residents of Disneyland say the 100-acre park has about 80,000 people a day. The new state regulations will allow about 12,000 visitors a day once Orange County reaches the red level.

One question is whether fans of the theme park will rush to the parks if the gates open or hesitate, for fear of the risk of catching COVID-19 while riding on Matterhorn Bobslee or Disney Studios’ tram tour.

“I think a lot of people are going to think twice,” Gerner said.

Ryan Temple, a Disney fan from Phoenix who visited Disneyland several times a month before the Disneyland pandemic, said he missed the park and regularly reminds himself of photos from his previous visits.

Still, he said he would probably not be there the day the park reopened.

“Even though it’s at 15% capacity, it’s still going to be a sudden shock to be with so many people again,” he said, adding that he could wait until he was vaccinated against COVID-19.

“I hope it comes sooner,” Temple said.

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