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 Mr. Iger. "My thoughts and prayers are with them, and I know everyone at Disney joins me in offering our deepest sympathies."

Mr. Iger called the Graves family from Shanghai, a Disney spokesman said. George Kalogridis, president of the Walt Disney World Resort, immediately flew from Shanghai to Orlando when news of alligator attack spread.

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 search and recovery of 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 22:15 ET (02:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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