Disneyland to reopen April 30, says Disney CEO Bob Chapek

California’s two Disney theme parks will reopen on April 30, CEO Bob Chapek said on CNBC’s “Squawk Alley” on Wednesday.

“We have seen the enthusiasm, the envy of people to return to our parks around the world,” Chapek told CNBC’s Julia Boorstin. “We have been working at Walt Disney World for about nine months and there is certainly no shortage of demand.”

“I think as people get vaccinated they get a little more confident that they can travel and, you know, stay Covid-free,” he added. “Consumers trust Disney to do the right thing and we’ve certainly proven that we can [open] responsibly, whether it’s temperature controls, masks, social distancing, [or] better hygiene around parks. “

Disney’s Grand Californian Hotel and Spa will reopen on April 29 with limited capacity before the parks. The Villa Vacation Club at the Grand Californian will reopen on May 2, and Disney’s Paradise Pier Hotel and Disneyland Hotel will reopen at a later date.

All California theme parks have been closed due to Covid-related restrictions over the past year. While guidelines in other states, like Florida, allowed parks to reopen with limited capacity, California rules have kept large and small theme parks closed.

However, new state guidelines allow amusement parks to reopen from April 1 with a capacity of 15% to 35% depending on the prevalence of the virus in the community. Masks and other health precautions will be necessary. Chapek said the two parks will operate at around 15% of their starting capacity.

California is reporting just under 2,900 new cases of Covid-19 per day, based on a weekly average, a drop of nearly 32% from a week ago, according to a CNBC analysis of data compiled by Johns Hopkins University. The rate of new cases of Covid is dropping as more people get vaccinated. With increasing supply and access, an average of about 2.4 million people get vaccinated every day in the United States.

Orange County, home to Disneyland and California Adventure, has four new cases per day per 100,000 people. At its peak, the county recorded 118 new cases per day per 100,000 population as of mid-January.

Last year’s shutdown led Disney to lay off tens of thousands of workers and cut a major source of revenue for the media company. The parks, experiences and consumer products segment accounted for 37% of the company’s total revenue of $ 69.6 billion in 2019, or roughly $ 26.2 billion.

A year later, revenues fell to $ 16.5 billion, or about 25% of the company’s $ 65.4 billion in total revenue.

During the company’s first quarter fiscal year earnings call, Christine McCarthy, chief financial officer, said that for parks that were opened during the pandemic, the company was able to provide “a net additional positive contribution “from guests who visited despite reduced capacity levels. This means that the revenues have exceeded the variable costs associated with the opening, she explained.

As parks increase in capacity and reopen, there will be some level of social distancing and mask-wearing for the rest of the year.