By Erich Schwartzel
This was supposed to be a triumphant week for Walt Disney Co.,
but two shocking events in Orlando, Fla., threatened to overshadow
carefully choreographed festivities on the other side of the
world.
The world's largest entertainment company expected to focus on
the opening of the Shanghai Disney Resort, a colossal theme park
for a booming market crucial to Disney's long-term growth. Instead,
attention has shifted more than 8,000 miles away to the company's
flagship Walt Disney World in Orlando.
The news media have been heavily covering Sunday's mass shooting
at an Orlando nightclub -- and news that Walt Disney World might
have been an initial target of the gunman's. Then Tuesday night, a
2-year-old boy was killed when an alligator dragged him into a
Disney World lagoon.
The tragic events come during one of the most important moments
in the company's history. Disney's three-day celebration in
Shanghai caps more than five years of construction -- and far more
time planning -- on the $5.5 billion-plus project. High-ranking
executives, including Chief Executive Robert Iger and Disney board
members, have been in China for days ahead of Thursday's grand
opening. More than 10 million visitors are expected at the park in
the first year, where annual operating income is expected to hit
$500 million by 2021, according to analysts at
MoffettNathanson.
More important, Shanghai Disneyland is the centerpiece of
Disney's growth strategy in China, and a chance for the company to
improve its spotty record with overseas theme parks. Mr. Iger, 65
years old, postponed his retirement largely to complete the
opening.
Now a pall has been cast over Disney's victory lap. On Sunday,
Mr. Iger released a statement on the nightclub shooting, saying:
"We are all heartbroken by the tragic and horrific events in
Orlando, and offer our thoughts, prayers and support to everyone in
our community affected by this senseless act."
Tuesday evening's alligator attack struck even closer to home
for the company, in a man-made lake at one of its own hotels. The
toddler was dragged into the Seven Seas Lagoon at the Grand
Floridian Resort and Spa, located not far from the Magic Kingdom.
The boy and his family were visiting the park from Nebraska.
The body of the boy, identified as Lane Graves, was recovered
Wednesday afternoon.
Disney closed all beach resorts and recreational marinas
Wednesday following the alligator attack.
"As a parent and a grandparent, my heart goes out to the Graves
family during this time of devastating loss," said Disney Chief
Executive Robert Iger. "My thoughts and prayers are with them, and
I know everyone at Disney joins me in offering our deepest
sympathies."
Continuing coverage of the alligator snatching has pushed the
Shanghai opening into the background. Tuesday -- the first of three
days of opening festivities in Shanghai -- started with reports
about the Orlando shooter's reconnaissance at the park. Omar
Mateen, whose attack Sunday at the Pulse nightclub in Orlando left
50 people dead, scouted the park while searching for targets,
officials briefed on the investigation said.
The company's response to the shooting included a $1 million
donation to a fund for the massacre victims. By midnight Disney had
a fresh crisis in Orlando: the alligator attack.
"Good Morning America," owned by Disney's ABC Entertainment
Group, on Tuesday night promoted live remote feeds from Shanghai
Disneyland to air Wednesday morning. Instead, producers opted to
cover the alligator attack. "Our plans changed today to cover
breaking news," an ABC News spokeswoman said.
Disney responded to the nightclub attack by increasing security
at its parks, including at Disney Springs, an area that can be
accessed without a ticket. The increased security included canine
units and "less visible" stealth security systems throughout the
area, a spokeswoman said. The company added metal detectors at its
Orlando and Anaheim, Calif., locations last December following
shootings in Paris and San Bernardino, Calif.
Disney guests are accustomed to metal detectors at major theme
parks, but it was unclear what impact the alligator incident would
have. The Grand Floridian resort is one of Disney's most expensive
hotels, with rooms starting at $569 a night and two-bedroom suites
costing nearly $2,000 a night.
Luaus and marshmallow roasts are hosted on the shore, and
visitors can fish, boat and take ferry rides across the water.
Though there were no-swimming signs posted in the area where the
boy was snatched, there was a lifeguard on duty, according to
Orange County, Fla., Sheriff Jerry Demings.
The psychic cost to consumers is impossible to calculate. The
crush of news coverage -- both about the increased security
following the nightclub shooting and the continuing search for the
young boy's body -- means visitors will have grim thoughts on their
mind as they walk through metal detectors to get into the park and
then see the lagoon surrounding it.
The alligator attack is already changing visitor itineraries.
Michael Esposito estimates he has been to Walt Disney World about
20 times, but said Wednesday that he was planning to avoid the
lagoon and boat trips on his next visit in November. Mr. Esposito,
a 65-year-old retired attorney from New Jersey, said his group
includes a 2-year-old girl. "I'm certainly not going to take her to
the water," he said.
--Joe Flint contributed to this article.
Write to Erich Schwartzel at erich.schwartzel@wsj.com
(END) Dow Jones Newswires
June 15, 2016 20:32 ET (00:32 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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