2
As the broader economy shows signs of a potential slowdown, what could this mean for the Orlando area Theme Parks, such as Walt Disney World Resort, Universal Orlando Resort, and SeaWorld Orlando?
There is no question that the last few years have been anything but a wild rollercoaster ride for the Orlando Theme Park industry. Beginning with a pandemic in March 2020 that forced the Orlando area Theme Parks to shut down to a political controversy between Florida Governor Ron DeSantis and The Walt Disney Company and CEO Bob Iger, there have been several hoops that the industry has had to jump through.
Despite the obstacles, business has been good for the Orlando-based Amusement Parks. 2022 was a big year for attendance, and 2023 has shown that the average revenue per attendee has increased significantly from its pre-pandemic levels.
However, things in the broader economy and consumers have become cloudier. This could force Disney, Universal, and SeaWorld to make strategic shifts to keep the turnstiles moving.
Over the past few months, according to The Motley Fool, the industry in Orlando has dealt with the following issues below:
- Orange County’s tourist tax — a 6% charge levied on Guests of area hotels and other short-term lodging rentals — experienced a decline in collections for April, capping a streak of 14 consecutive months of year-over-year gains.
- Walt Disney World Resort offers Florida residents discounts on multiday tickets this summer and deals to save as much as 30% on stays at its onsite resorts. Competitors of the Theme Park King are also promoting summertime deals for local residents.
- The Orlando Sentinel reported earlier this week that some tech and nursing conventions had canceled upcoming conferences at the Orange County Convention Center in response to recent polarizing political moves in Florida.
Even with some of the troubling news, the industry is fighting back.
Recently, Disney World finally opened up its Annual Passholder program to the public to help drive attendance. In addition, many of the Parks have introduced new attractions, such as Magic Kingdom’s TRON Lightcycle Run and SeaWorld Orlando’s Pipeline: The Surf Coaster. Universal Orlando Resort also has big plans and is expected to release its new ‘Minions’-Inspired Attraction soon.
Hopefully, for the Orlando Theme Park industry, this will be enough for them to survive an economic downturn if we end up in one.
Would Disney, Universal, and SeaWorld still be highly attended if we entered a recession in the United States?