As it turns out, Disney Parks, Resorts and Products will be spending more than previously expected on construction and refurbishments at the theme parks.
At last week’s Q3 earnings call, The Walt Disney Company announced that the cut in capital expenditures has been reduced to $700 million. Previously, a $900 million cut was expected. Disney CFO Christine McCarthy attributed the spending cut to lower spending on domestic Disney resorts, including Walt Disney World and the Disneyland Resort.
The news comes off the heels of the COVID-19 pandemic devastating the company’s finances. Disney Parks, Resorts and Products reported a $2 billion loss for the third quarter, which covered most of the closure of domestic Disney parks and Disneyland Paris. The Disneyland Resort remains closed at this time, with no reopening date reported as of yet.
Walt Disney World has already begun to see the results of this spending cut. Last month, it was confirmed that both the large-scale refurbishment of Spaceship Earth and the Mary Poppins-themed section of the United Kingdom Pavilion at EPCOT had been postponed, while rumors abound that work on Reflections – A Disney Lakeside Lodge has been cancelled. Other projects remain ongoing with work continuing “in stages,” including TRON Lightcycle / Run at the Magic Kingdom and Guardians of the Galaxy: Cosmic Rewind and the Play! Pavilion at EPCOT, as well as Mickey & Minnie’s Runaway Railway in Disneyland and Avengers Campus in Disney California Adventure.
