The Walt Disney Company is expanding its financial plans to renovate and redevelop its California theme parks amid Disney’s CEO Bob Iger’s feud with Florida Governor Ron DeSantis.
Disney’s Josh D’Amaro, the theme park and consumer products chairman, announced the upcoming employee changes last month.
“It is clear to me that the power of this brand comes from our incredible people, and we are committed to handling this change with care and compassion. I remain optimistic about the direction of our Walt Disney World business,” he wrote.
Disney then announced the closure of its Star Wars-theme luxury hotel, where a family of four paid $6,000 for a two-night stay.
Iger had blasted DeSantis as “anti-business” and “anti-Florida” in April following DeSantis’ decision to strip the entertainment giant of its self-governing status over its Orlando theme parks.
“Disney announced the possibility of a Lake Nona campus nearly two years ago. Nothing ever came of the project, and the state was unsure whether it would come to fruition,” DeSantis’s office said in response to the lawsuit.
“Given the company’s financial straits, falling market cap, and declining stock price, it is unsurprising that they would restructure their business operations and cancel unsuccessful ventures.”
Last month, Mr. Newsom attended Disneyland’s Pride Nite and acknowledged the state’s embrace of Disney.
“In California, we don’t just tolerate our diversity; we celebrate it and all the ways it makes us stronger,” he said in a statement. “Our inclusivity and acceptance attract new talent and ideas that drive our economic growth and make California a hotspot for world-leading companies to grow and prosper.”
Newsom’s office also promoted a study by economists from Cal State Fullerton, which claimed that the state would benefit financially from the “Disneyland Forward” initiative.“Findings show what an economic powerhouse Disneyland Resort is,” Puri, Adrian Fleissig, professor of economics, summarizes. “It is the largest employer in Orange County, and its impact is felt beyond Anaheim. Not only does it draw tourists from around the world, but it also adds to the local economy through its major construction and renovation projects. Disneyland Resort is a magnet and catalyst for additional tourism and recreational activities and enterprises in the region.”
Disneyland is the largest employer in Orange County and generates more than $5.7 billion annually for the Southern California economy. California’s tourism industry is a major economic driver; travel spending increased to $134.4 billion last year, supported 1.09 million jobs, and generated $11.9 billion in state and local tax revenue.
The project will have residual benefits, including $15 million in annual tax revenue for the city of Anaheim, more than $20 million in tax proceeds for the state, and the creation of thousands of construction and ongoing operations jobs.
Tom Bricker, the editor of disneytouristblog.com, sees “a golden window of opportunity” for Disney in California, partly because of the Florida troubles, newly elected “friendly” city leaders in Anaheim, and the backing of Newsom and state leaders.
“There’s the practical reality that Disney is not going to be in a financial position to build everything everywhere all at once, [and] in the near to medium term tough decisions are going to be made about expansion,” he wrote.
“That aforementioned window with California, coupled with the ongoing standoff in Florida, potentially makes it easier to justify prioritizing Disneyland.”
