Disneyland in Shanghai set for reopening

Company CEO says phased approach follows 'encouraging signs' of steady return to normalcy

Shanghai Disneyland is set to become the first Walt Disney Co theme park to reopen after novel coronavirus-related closures, as China embarks on a steady path to normalcy in daily life and business activity.

The park, scheduled to reopen on Monday, said it will follow a deliberate approach by implementing a list of enhanced health and safety measures.

Bob Chapek, who became the Walt Disney CEO in February, said during an earnings call on Wednesday morning that the decision, made jointly with local partner Shanghai Shendi Group, follows "encouraging signs of a gradual return to some semblance of normalcy in China". Facilities adjacent to the park, including Disneytown, a shopping, dining and entertainment complex, and Shanghai Disneyland Hotel reopened in March.

"We will take a phased approach with limits on attendance, using an advanced reservation and entry system, controlled guest density using social distancing and strict, government-required health and prevention procedures," he said. "These include the use of masks, temperature screenings and other contact tracing and early detection systems."

Visitors can check opening hours and purchase tickets starting at 8 am on Friday via the Shanghai Resort's online channels and official travel partners' channels. In the initial reopening phase, advanced ticketing and reservations are required to maintain limited attendance.

During the conference call, Chapek said the park has a capacity of 80,000 visitors per day, and the government has mandated that it operate at 30 percent capacity, or around 24,000 visitors.

The park will open up far below that capacity at first and gradually ramp up to reach the 30 percent cap in a few weeks, when it may even lift some of the restrictions, Chapek said.

Qiu Tai, an annual pass holder in her 30s who usually visits the park once or twice a month, said, "The reservation model could effectively shorten the waiting time for each ride, thereby enhancing the overall experience."

Shanghai Disneyland will also accommodate social distancing in lines, restaurants, ride vehicles and other facilities throughout the park, and it will increase the frequency of sanitization and disinfection.

"Wearing a mask could actually help keep out the wind when I finally get to board the superfast Tron (roller coaster) again. I should definitely take a photo in that outfit," said Han Lulu, a Shanghai accountant and annual pass holder.

The Shanghai theme park was shuttered on Jan 25 in connection with COVID-19 at the height of its spread in China. All Disney's 12 theme parks have remained closed since mid-March. Disney's parks, experiences and consumer products segment had been the company's fastest-growing profit driver, but recent closures cut 10 percent from the division's revenue in the second fiscal quarter.

The phased reopening, with precautions, shows the delicate balance between epidemic control and rebooting businesses, which is conducive to economic development in the long term, said Bai Guo, an assistant professor of strategy at China Europe International Business School.

"The reopening offers a beam of hope, suggesting the virus can be contained. It will also help the nation's service sector gain confidence and prevent capital from flowing into the likes of real estate," she said.

The reopening isn't expected to just boost consumption but also reinvigorate the labor market, said Li Qian, an assistant professor at Shanghai University of Finance and Economics who specializes in the tourism economy.

"Disneyland per se can effectively drive other closely related businesses like catering, accommodations, merchandising and the wider travel sector," she said.

Hit hard by the virus, the entertainment, leisure and tourism industry is showing initial signs of bouncing back. During the May Day holiday from Friday to Tuesday, Shanghai welcomed 7.07 million tourists, driving sales of 9.5 billion yuan ($1.3 billion), according to the Shanghai Tourism Administration.

The reopening also arrives as the metropolis kicks off a series of consumption-boosting events, including massive discounts and new product launches by many international consumer brands.