Looking Back: The Effects of 9/11 on Disney
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Wall Street closed its markets that Tuesday and didn’t reopen them until the following Monday. In an effort to strengthen the markets, several companies, including Disney, decided to show their faith in the economy as Reuters wrote:
The Burbank, California-based company is one of dozens of U.S. companies on Monday to announce buyback programs in a show of confidence in the U.S. economy after last Tuesday's air attacks on the World Trade Center and the Pentagon. The Securities and Exchange Commission last week eased its rules on buybacks.
Nevertheless, the attacks had an enormous effect on travel stocks like Disney wrote the Orlando Sentinel:
Tourism-related stocks were pummeled Monday as investors found plenty to fear in fear itself on the first day of trading since last week's terrorism attacks. Wall Street's worries were spread across the gamut of travel -- from hotels to theme parks to cruise lines. Walt Disney Co., one the entertainment industry's biggest players, took a huge hit: Its stock fell 18 percent to $19.25 a share.
Orlando hotel occupancy was also immediately hard hit wrote the Sentinel:
Occupancy at some hotels has plummeted to less than 10 percent, and what few tourists are around can walk right onto the most popular rides at the area's theme parks without waiting in line. Out-of-towners can even cross International Drive, Orlando's main tourist strip, without dodging a single car.
Unfortunately the fallout from the lower attendance ultimately came down on the Cast wrote the Orlando Sentinel 9 days after the attacks:
Walt Disney World is temporarily freezing hiring and cutting the hours of most of its 40,000 hourly workers because of a steep drop-off in visitors. The sharpest reductions will be for Disney's 15,000 part-time employees, some of whom are being told not to report for work at all until further notice. "I wouldn't call them layoffs because to me that means your identification is taken away and you're told you don't have a job," Disney spokesman Bill Warren said.
One positive change for consumers coming out of the economic pains of the parks, monthly payment plans for annual passes. WESH TV wrote:
In an effort to boost ticket sales, two Florida theme parks are now offering admission payment plans. SeaWorld and Busch Gardens have announced a new plan that allows guests to pay for a one- or two-year pass on a monthly basis.
Universal Studios has also offered the monthly payment plan for years and in the past year Disney has even started to offer it for California/Florida residents.
As we’ll all recall Patriotism was at an all-time high after the attacks. Disney, which has always been a part of Americana, already had many America-themed items available in the parks which did very well wrote the Orlando Sentinel:
Every toy or other souvenir that's "red, white and blue" has seen "a dramatic rise in sales," said Charles Stovall, a Walt Disney World spokesman.
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Also in short supply are the patriotic choices among the thousands of tiny metal pins that depict Disney animated characters in various poses and outfits. Who knew on Sept. 10 that the $6.50 pin in the shape of an American flag with Mickey ears silhouetted on it would set off a frenzy of demand? But now some Disney stores are out of those, too.
Since 9/11 US flags had been ordered to half staff to honor the fallen. President Bush ordered all US Flags back to full stage on September 23rd. Disneyland commemorated the event with a ceremony hosted by then-CEO Michael Eisner and then-Disneyland President Cynthia Harriss. Also in the ceremony to sing God Bless America was then-Disneyland entertainer Eden Espinosa who went on to become a lead on Broadway. LaughingPlace.com covered the event including full video.
The attacks of 9/11 continue to affect Disney to this day and likely will continue indefinitely. This article shows just some of the immediate and short-term occurrences. Multiply it many thousand times over and it’s clear why 9/11 has changed America forever.
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-- Posted September 9, 2011