by Ray Keating
News/Analysis
DisneyBizJournal.com
August 25, 2020
News has been spreading that Disney is extending the furloughs of various employees. Unfortunately, that’s not surprising based on what DisneyBizJournal’s Beth Keating saw at the Magic Kingdom yesterday (August 24).
Magic Kingdom on August 24, 2020
As Fox Business, for example, noted this morning, “Select employees of Disney World and Disneyland reportedly received an email explaining that their furlough has been extended amid the ongoing coronavirus pandemic… Disney actress Sheila Ward claims that she and other staffers received an email on Monday detailing that their furlough was ‘indefinite,’ with no date disclosed regarding when cast members may be called back to work.”
Magic Kingdom on August 24, 2020
(Keep in mind that furloughed workers effectively remain employees and still receive certain benefits (such as Disney still paying health insurance), while laid off workers no longer are employees of a company.)
None of this is surprising based on the DisneyBizJournal Magic Kingdom visit. Beth Keating reported fewer-than-expected kiosks open, some shops and restaurants closed, and limited seating at other sit-down restaurants.
Magic Kingdom on August 24, 2020
Magic Kingdom on August 24, 2020
Magic Kingdom on August 24, 2020
Magic Kingdom on August 24, 2020
Many rides had waits of 10 minutes or less, even attractions with notoriously long lines, like Peter Pan’s Flight and Space Mountain, were only 15-20 minutes. Others were walk on.
Liberty Square and Frontierland had “ghost town” feels. And the park “empties out by late afternoon.”
Magic Kingdom on August 24, 2020
Magic Kingdom on August 24, 2020
This pandemic has crippled big parts of our economy, with travel and tourism being among the very hardest hit. It should be noted that the Conference Board reported today that its measure of consumer confidence took another big hit in August, after declining in July as well. Lynn Franco, Senior Director of Economic Indicators at The Conference Board, warned, “Consumer spending has rebounded in recent months but increasing concerns amongst consumers about the economic outlook and their financial well-being will likely cause spending to cool in the months ahead.” For some additional perspective, consider that the latest report from the U.S. Department of Labor on initial jobless claims pointed out that the total number of individuals receiving unemployment benefits in all programs registered 28,059,349 for the week ending August 1. A year earlier, that number was 1,702,382.
Climbing out of this deep hole will take time, with vaccines and therapeutics central to that process. And companies like Disney won’t get back to normal until that happens, along with some other necessities along the way.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels. He can be contacted at raykeating@keatingreports.com.
Also, get the paperback or Kindle edition of Ray Keating’s new book Behind Enemy Lines: Conservative Communiques from Left-Wing New York.
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