Disney has temporarily closed its theme parks in Shanghai and Hong Kong because of the coronavirus, potentially costing the company nearly $175 million, according tomedia CNET. “We salute everyone affected by this catastrophic outbreak, including the thousands of people who worked for us in the region,” Bob Iger, Disney’s chief executive, said on a earnings conference call On Tuesday. He added that the company would be closely watching the public health crisis.
Disney Chief Financial Officer Christine McCarthy said on a conference call that closing the two parks could have a negative impact on total second-quarter earnings, totalling $175 million, depending on the duration of the outbreak. The company estimates that Shanghai Disneyland will lose about $135m, while Hong Kong Disney will lose about $40m.
The coronavirus originated in Wuhan and has spread to Asia as well as the United States, Australia, Europe and the Middle East, and shows symptoms similar to pneumonia.
The announcement on the Shanghai and Hong Kong Disneyland websites said the company was in contact with health officials and local governments and would not be notified of the resumption of the opening time. Disney also offers refunds for certain tickets and hotel reservations.