A new report by UBS explains that pent-up demand and vaccinations will see attendance levels soar at Disney theme parks, WDWNT reports.
Pent-up demand and vaccine will boost attendance
John Hodulik, the UBS financial analyst, said that the “parks business has bottomed and we’ll see improved attendance/profitability as the vaccine becomes more widely distributed”.
Since parks have implemented operational improvements during the pandemic, they will have higher margins. Hodulik explains that this will lead to “historical performance and attendance metrics by FYE22”.
70% capacity by the end of 2021
The “pent-up demand for leisure travel” and the increasing availability of the vaccine will mean Disneyland and Walt Disney World will be able to increase attendance to 70% capacity by the end of 2021.
Whilst Disneyland Resort currently remains closed, Walt Disney World is currently operating at 35% capacity. This report by UBS expects attendance will recover fully by 2023.
Disneyland Resort is currently open as a vaccination site, providing vaccinations for those on the priority list for Orange County. The theme park is one of five Super Point-of-Dispensing sites in the region and will allow several thousand locals to be vaccinated each day.
Whilst UBS’s report only discusses Disney theme parks, it can be expected that the pent-up demand and vaccine roll-out will also benefit other theme parks and help them to recover after a difficult year.
Meanwhile, Disney announced that it will ‘enhance’ the Jungle Cruise attraction at both Disneyland and Walt Disney World. The role of the Skipper will be expanded, and scenes will be updated to “reflect…the world around us”.
Disney also confirmed several new attractions that will open in 2021 around the world, including the Avengers Campus at Disneyland. Walt Disney World is also celebrating its 50th anniversary in October. Reaching 70% attendance levels for this milestone would allow more people to take part in the celebrations.