By Erich Schwartzel 

Walt Disney Co. said it plans to begin reopening its Disney World theme park at reduced capacity in mid-July.

The Orlando, Fla., park's Magic Kingdom and Animal Kingdom areas are to reopen on July 11, according to Jim MacPhee, senior vice president of operations at the park. The park's Epcot and Disney Hollywood Studios areas are to follow on July 15.

In a presentation to local officials in Orange County, Fla., Mr. MacPhee described changes that amount to a top-to-bottom reimagining of Disney World.

Customers and staff will be required to wear masks and complete temperature checks before entering the park. Plexiglass will separate employees from guests in certain stores, and cashless transactions will be encouraged. Parades and fireworks presentations have been temporarily suspended, as well as meet-and-greets with performers portraying Disney characters.

Disney fans have already indicated they will be there when the park reopens, said Chief Executive Bob Chapek. "We have unbelievable demand," he said.

Disney World is among the highest-profile examples of the central conundrum facing restaurants, stores and other consumer businesses in the U.S.: how to resume operations while keeping customers and employees safe from the spread of the novel coronavirus. In much the same way that the closure of Disney parks in mid-March was one signal of the gravity of the virus's spread, their reopening is viewed across industries as a barometer for when economic activity may return to some semblance of normalcy.

The issue is particularly acute for Disney. Over the past several years, the company has struggled with too many customers trying to visit its theme parks, often hitting capacity-busting levels of visitors. The parks have now sat empty for longer than at any time in Disney history, throwing the surrounding local economy into an unpredictable future and presenting a significant economic drain on Disney's finances.

Disney has since furloughed more than 100,000 workers since, largely from the parks workforce.

Analysts don't expect revenue for the company's theme parks to return to prepandemic levels soon. Mr. MacPhee didn't say what the ceiling on attendance will be, though any decrease in foot traffic will depress income in ticket sales and hotel occupancies, all while the company has to spend more money on cleaning and sanitation.

Mr. Chapek declined to say at what attendance levels the park becomes profitable, but said, "We would not open up until we could cover our variable costs of opening up."

To control the number of people allowed into the park, customers will need to reserve a ticket ahead of time, Mr. MacPhee said.

Once inside, a "social-distancing squad" of Disney World workers will encourage visitors to stay 6 feet apart from others, Mr. MacPhee said.

Disney World will open with a limited number of guests so executives can observe how attendees interact with the new rules in place, Mr. Chapek said. That will help determine how much attendance can fluctuate while allowing for 6 feet of distance between every guest.

Disney World's proposed plan was approved by the Orange County Economic Recovery Task Force.

Florida has had nearly 2,300 deaths associated with the coronavirus, said Dr. Raul Pino, health officer for the Florida Department of Health. Of the more than 66,000 people tested for the virus in Orange County, about 2.8% have tested positive -- about half the overall rate for the state.

"It still has not been totally controlled," said Dr. Pino, adding that the number of new cases is trending downward in the area.

As the spread of the virus slowed in China, Disney began reopening its Shanghai Disneyland earlier this month, capping capacity at 30%, or about 24,000 guests. Masks are required, and performers who portray well-known characters keep a distance from visitors.

Mr. Chapek said reopening plans for Disneyland are still forming.

It isn't clear when Disneyland, in Southern California, might reopen. A Disney spokesman didn't immediately respond to a request for comment on the Disneyland reopening plans.

In a separate presentation on Wednesday, executives from SeaWorld Parks and Entertainment said they hope their Florida parks will reopen to the public on June 11 with similar mask and social-distancing requirements. One sign going up in SeaWorld demonstrates the 6 feet required for social distancing by comparing it to the length of a shark.

Write to Erich Schwartzel at erich.schwartzel@wsj.com

 

(END) Dow Jones Newswires

May 27, 2020 14:19 ET (18:19 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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