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The ongoing feud between Disney and Florida Gov. Ron DeSantis has raised questions over the wisdom of picking a fight with one of Florida's largest employers. Disney's latest move was to scrap a $1 billion development in Florida, which could have brought more than 2,000 well-paying jobs to the Sunshine State. Richard Foglesong, a leading expert on Walt Disney World's history and politics, believes DeSantis has more to lose due to how much it benefits economically from Disney. A 2019 study by Oxford Economics found Orlando tourism generated $75.2 billion for central Florida in 2018. Disney employs 75,000 people in Florida, making it the state's second-largest private employer behind the Publix grocery store chain.
Disney Cruise Line ships leave from three different ports in Florida. Disney parks, experiences, and products, in comparison, pulled in $28.7 billion, or around 33% of the company's total revenue. Disney's Florida resort is its most popular location, bringing in 58 million people annually. However, the company has many other sites, including internationally, that draw tens of millions of people each year. Disney in Anaheim drew 28.5 million visitors between its two parks in 2019, Disneyland Paris attracted 9.7 million people in the same year, Shanghai Disneyland attracted 11.2 million, Tokyo Disneyland and Tokyo DisneySea — which are owned by the Oriental Land Company with intellectual property licensed from Disney — had nearly 32.7 million visitors between them in 2019, and Hong Kong Disneyland drew 6.5 million visitors in the 2019 fiscal year.
Disney also has the Disney Cruise Line, which is set to expand to Southeast Asia in 2025. Disney has options on where to invest or expand, which could have significant consequences for Florida. Disney is stuck in central Florida, with too much brick-and-mortar investment for the theme park and resort to be moved elsewhere. However, Disney can lower their replenishment investment in the Disney World theme park, as many guests are repeat visitors. Disney is facing pressure to keep investing in its Florida resort or risk losing customers, which could hurt Orlando's economy and cause a lose-lose situation for both the state and the company.
The challenge is how many times guests come back to see the same rides and attractions, as Disney draws back repeat visitors in part because it is constantly expanding. Disney provides a significant boon to other tourism and tourism-adjacent businesses, as well as the entire economy of central Florida. Choosing not to reinvest in its Florida resort could hurt not only Disney's annual visitation numbers but those of neighbouring theme parks and businesses as well. The average Disney visitor might spend four days at Disney parks, two at Universal Studios, and one at Sea World, for example. Disney's parks chief, Josh D'Amaro, said Monday the company plans to spend $17 billion in Florida over the next decade and that the fight with DeSantis has not hurt Disney's business. However, if DeSantis's campaign against Disney ultimately results in less investment in Florida, it won't just be the House of the Mouse that loses visitors.
This article is initially published by businessinsider.com
