Disney Theme Parks are expected to lose $21 billion during shutdown

The current situation at disney Parks is rather dire. The theme parks have been bleeding money during the current shutdown. They are believed to be unable to reopen until January. Some have begun reporting that Disney Parks will lose billions through 2022.

Disney will feel the financial pain of the pandemic for the next few years

MoffettNathanson released a new report that doesn't paint a bright future for the theme parks.

They believe Disney Parks will lose $21.7 billion, comparing to earnings from last year. This is a rather large chunk of Disney's business. This is a more depressing picture than what many insiders were expecting. In comparison, Shanghai Disneyland cost $5 billion to construct.

The OC Register reports Disneyland and Disney World have been closed since March, with the other parks closing as well. Business insiders say that attendance will fall by half through the end of 2020. However, there is potential for attendance to increase by 75 percent in 2021. In 2022, Disney Parks may eventually see attendance up by 90 percent.

However, discount tickets, which many expect Disney to offer, are going to eat away Disney's earnings potential.

Remains unclear when Disney will re-open

The report also examined previous financial downfalls, the company has experienced. Disney saw a decline in profits amid the 9/11 aftermath, as well as the Great Recession from 2008 to 2009. MoffettNathanson sees the current crisis hurting the travel and hospital industries. This means Disney will definitely feel the aftermath.

The current economic downturn will have a more serious impact on the travel and hospitality industries than Disney's previous two economic downturns. Now insiders question when will the parks reopen to the public. Prior to opening, Disney Parks must figure out how to handle the current staffing situation.

It's rumored that the company would open one park at a time. How will the Orlando hotels be impacted by the current decline in air travel?

Some insiders claim Disney theme parks will be opened by July. Others say they won't open until next year. Regardless, once the parks open, they will be under strict CDC guidelines in order to follow social distancing guidelines. Disney will be forced to limit park attendance. Park visitors may even have to sign a waiver not holding the parks responsible if they get sick. It will definitely take time for fans to completely return to the theme parks. MoffettNathanson believes the Disney parks will rebound in 2022. However, it all falls on whether a COVID-19 vaccine is finally made available and the threat of the pandemic goes away. The same financial pain Disney is feeling is also being felt by other similar industries.