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Attractions Industry Feels the Effects of Coronavirus Outbreak March 2020 AMUSEMENT TODAY 39 BUSINESS & NEWSMAKERS Scene75 founder finds a home in the FEC industry — page 42 / Industry legend Tom Powell passes — page 46 Attractions industry feels the effects of coronavirus outbreak Parks close, stocks take a hit as impacts are being assessed AT: Dean Lamanna [email protected] WUHAN, China — Beyond its growing human toll, the effects of the novel corona- virus, officially designated COVID-19 by the World Health Organization, is a global health emergency touching the attrac- Among the major attractions in China that remained closed as of mid-February because of the spreading novel coronavirus, tions industry worldwide. or COVID-19, were Shanghai Disneyland and Hong Kong’s Ocean Park. The outbreak was first COURTESY DISNEY PARKS, EXPERIENCES AND PRODUCTS; OCEAN PARK detected in Wuhan in December. “We will continue to care- ed or canceled flights to and seen this happening.” Kong park on Lantau Island to Since then, government officials fully monitor the situation and from mainland China, several For some companies, retrac- the government for coronavirus have locked down an increas- be in close contact with the cruise ships have become float- tion may become necessary quarantine facilities. The gov- ing number of cities in the sur- local government, and we will ing quarantines and some gov- before long. In early February, the ernment needed the facilities to rounding region, halting pub- announce the reopening date ernments have imposed two- International Monetary Fund in bring back some 2,200 residents lic transportation in an effort upon confirmation,” Disney said week quarantine rules on cer- Washington, D.C., warned that stranded in Hubei province to prevent the disease from in an online statement, promis- tain travelers, companies with the coronavirus may bring a because of the outbreak. spreading. These moves initially ing to assist with refunds. active projects in the areas hit slowdown in world economic ITEC’s Bill Coan observed impacted more than 40 million At the same time, Cirque hardest by the epidemic have growth in the short term. One that the attractions industry people across Hubei province. du Soleil Entertainment Group become increasingly concerned report suggested that it could has not confronted an epi- As Amusement Today went to canceled performances of and attuned to updates. become the costliest-ever epi- demic of this magnitude since press in mid-February, cases of “Cirque du Soleil The Land of “Because China has histori- demic, projecting that the virus the SARS outbreak in 2002-03. the coronavirus had been report- Fantasy” in Hangzhou, China, cally been our most important will cost China about $62 billion, “There were far fewer precau- ed in virtually all parts of the and Imax Corp. postponed the- market, we have closely followed or 2% of the country’s GDP, in tions taken at that time, which globe. The number of cases inter- atrical releases planned for the the developments on a daily the first quarter of this year. I believe has fueled businesses nationally exceeded 71,000, with country’s New Year holiday. basis,” said Taylor Jeffs, presi- While highlighting to improve their response to the the number of cases in mainland Industry veteran Bill Coan, dent and chief creative officer improved attendance and rev- coronavirus,” Coan said. “I see China alone surpassing 70,500 — president and CEO of Orlando- of North Hollywood, California- enue numbers at its domes- this most recent outbreak as a even with a two-week self-quar- based ITEC Entertainment based immersive entertain- tic parks in the first quarter ‘lesson learned’ type of proac- antine rule in effect in some of Corp., an international themed ment design firm Legacy of its new fiscal year, Disney tive reaction as theme parks the country’s metropolitan areas. entertainment design and real Entertainment. “Our primary was bracing for a likely two- work to quickly mitigate risk as The disease had caused at nearly estate development company, concern has been for the families month closure of its China fast and as efficiently as possi- 1,800 deaths, including three out- told AT that because of the of our employees, partners and parks. Hong Kong Disneyland ble. It will soften the blow to the side mainland China. epidemic’s growing disrup- friends, and so far, we are happy was already seeing depressed business model in the long run.” In late January, The Walt tion to the Chinese and global to say that none of them have numbers because of riots in the The International Disney Co. was among the first economies, “[many] theme park been directly impacted.” city. The coronavirus, the com- Association of Amusement major attraction operators to developers will likely lose hun- Jeffs acknowledged to AT pany predicted, will incur addi- Parks and Attractions (IAAPA), take preventative steps, shutting dreds of millions as the spring that it likely will be months before tional operating income losses which is constantly monitoring down indefinitely large parts of season, which typically causes the long-term effects of the virus of about $175 million between the coronavirus developments Shanghai Disney Resort (includ- an uptick in guests before on China’s entertainment land- its Shanghai and Hong Kong globally, has canceled its Meet ing Shanghai Disneyland, the busy summer, is halted. scape can be comprehended. “We properties in its second quarter. IAAPA event scheduled for Disneytown and Wishing Star Seasonal ramp-up plans have have been impressed with the After Disney closed its March 22 in Beijing. For IAAPA Park) and, shortly thereafter, clos- been put on hold. resiliency of our clients and their Shanghai theme park, shares members impacted by or seek- ing Hong Kong Disneyland just “While there is no recall desire for new projects to con- slipped in early trading in a ing information about COVID- as the country was preparing to precedence for these types of tinue to move forward, despite move that would extend the 19, visit the IAAPA Asia celebrate its Lunar New Year hol- crises, major players in the the global uncertainty and new stock’s six-month decline Pacific Information Exchange iday. Many other parks, includ- space, including Disney, are way of working,” he said. “It to around 4.8%, according to Group at the IAAPA Member ing Happy Valley Shanghai and making the right move in proac- would have been very easy to TheStreet.com. Resources for Coronavirus Hong Kong’s Ocean Park, fol- tively protecting their brand and use this virus as a valid reason to Meanwhile, Disney is lend- (COVID-19) link on the organi- lowed suit — some under gov- guests by prioritizing safety.” pump the brakes on some devel- ing a 60-hectare site it was reserv- zation’s website. ernment orders. As air carriers have restrict- opments, but so far, we have not ing for the expansion of its Hong •iaapa.org.
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