Even as they attempt to dig out from the global recession, Walt Disney World and other theme parks could face a new threat: Higher crude oil and gasoline prices.
That’s a potential concern raised by stock-research analysts who follow the Walt Disney Co. for Janney Capital Markets.
“We suspect the dramatic rise in the cost of cruise may…limit regional attendance (ie: those that drive to parks) and may start to incrementally weigh on margins,†analyst Tony Wible wrote in a research note issued yesterday.
The oil-price fear is part of a mixed outlook Wible has for Disney’s theme-parks business. He also expresses concern that Disney has continued to discount — with offers including a free $750 gift card for guests who book five-night stays in certain Disney World resorts — saying “we generally believe these promotions are a negative harbinger for the health of the parks business.â€
But he also noted that traffic at Orlando International Airport and hotel-occupancy rates in Orlando have turned positive after extended declines.
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