The Most Magical
Place on Earth also Helps the Economy
By Gabby Mouradian
Walt Disney
World opened its doors in 1971 with a single ticket priced at $3.50. Now, over
four decades later the price has increased to an astounding $95. Although the
current price seems ridiculously expensive for just one day at a theme park,
due to this extreme jump in prices Disney was able to generate $18.2 billion
dollars in 2011, which worked as a ripple effect throughout Florida. (Below is
a chart of the ticket price increases for the past 42 years).
According
to orlandosentinal.com, Disney is “responsible for more than one of every 50
jobs in the state”. And on top of that a “report released, found that Disney’s
theme-park operations in the state—which include Disney World, Disney Cruise
Line and its Disney Vacation Club time-share business—account for 2.5% of
Florida’s cumulative GDP”. Although
many people can see that Disney is responsible for multiple jobs throughout
Florida, there’s a good chance they had no idea that in 2009 Disney paid out
almost $1.8 billion in compensation to more than 59,000 employees. That
averages out to an annual salary of about $30,500.
It’s mind
blowing to think about all of the people and money that come through Walt
Disney World on a daily basis, much less yearly. In just 2009 alone “Disney
purchased $2.3 billion worth of goods and services”. And due to the fact that
Disney World currently owns about 26,000 hotel rooms and time-share units, the
amount of guests it’s attracting is only increasing. Because of this increase,
more vendors and other businesses on the property are having better sales. Even
off-site businesses are booming. In 2010 Disney vacationers spent $1.7 billion
at businesses not connected to Disney. (Below is a pie chart showing the amount
of money Disney brings in, in its different sale categories)
Including
all of the wages paid out to the employees, all of the sales Disney made, and
all of the money they spent, “that amounted to a cumulative direct economic impact of $6.3 billion”. After
“researchers used computer models to include additional, ‘indirect and induced’
from Disney’s operations, they said the total economic effect swelled to $18.2
billion, and approximately 161,000 jobs”.
This is a
giant help to the Walt Disney World companies, and to the entire state of
Florida. Although Disney hasn’t created a new park since 1998, they are working
on bettering the parks that they have now, and creating hotel rooms that
accommodate to larger families with little kids. It’s obvious that Disney
expanding has only helped the economy. In just two years the unemployment rate in Florida dropped
from 12% to 7%. There’s a good chance that due to the large amount of jobs
provided throughout the Disney company, that Walt Disney World had a large
impact on the unemployment decrease.
It’s not
hard to see that Walt Disney World is not only a magical place to enjoy with
family and friends, but also a way to help the economy and keep it on track.
Without Disney World, and the Disney company I don’t think that Florida’s
economy would be doing so well and that the unemployment rate would be going
back down to a reasonable number. (Below is a picture of the castle in Magic
Kingdom, and a statue of Walt Disney holding Mickey Mouse’s hand).
Works Cited
·
http://www.google.com/search?q=graphs+of+disney&safe=active&source=lnms&tbm=isch&sa=X&ei=PJ9rUrJNJG6yAGY3YGYBw&ved=0CAYQ_AUoAQ&biw=1024&bih=448&surl=1#q=disney+cash+grapg&safe=active&tbm=isch&facrc=_&imgdii=_&imgrc=oa9f4IDqS82_M%253A%3BFOZduAbqf5cxIM%3Bhttp%253A%252F%252Fstatic.seekingalpha.com%252Fuploads%252F2011%252F9%252F13%252F1020655131596133565924TakeoverAnalyst.png%3Bhttp%253A%252F%252Fseekingalpha.com%252Farticle%252F293631-disney-a-company-you-can-vacation-off-of%3B348%3B202
\
·
http://blogs.orlandoweekly.com/bloggytown/rising-walt-disney-world-ticket-prices-1971-2013/
·
http://articles.orlandosentinel.com/2011-04-13/the-daily-disney/os-disney-economic-impact-20110413_1_disney-cruise-line-world-president-meg-crofton-disney-vacation-club
·
http://www.google.com/search?q=graphs+of+disney&safe=active&source=lnms&tbm=isch&sa=X&ei=PJ9rUrJNJG6yAGY3YGYBw&ved=0CAYQ_AUoAQ&biw=1024&bih=448&surl=1#q=walt+disney+world&safe=active&tbm=isch&facrc=_&imgdii=_&imgrc=RfN6eBVXDxMkzM%253A%3BS101jwuqiNf8rM%3Bhttp%253A%252F%252Fpjmedia.com%252Flifestyle%252Ffiles%252F2013%252F09%252Fwaltdisneyworld01v1.jpg%3Bhttp%253A%252F%252Fpjmedia.com%252Flifestyle%252F2014%252F04%252F05%252F5-underrated-disney-world-attractions-you-shouldnt-skip%252F%3B714%3B356
Its crazy how one business could have that large of an impact on Florida's economy. The ticket prices have skyrocketed over the years but I believe that the benefits still outweigh the costs. Which is all that matters. As long as Disney is in business the economy in Florida will boom. Disney hols a lot of Florida's jobs also, which is a great benefit for the economy. What is shocking to me is the fact that the revenue from Disney land comes mostly from Media networks.
ReplyDeleteIt is interesting to observe the growth of the Disney Company over the years. The success of Disney proves that if you produce a product the public likes, the demand will allow for a wide range of growth. Because of the increase in demand throughout both expansion and contractionary phases, Disney has been able to expand as a company—branching into many areas such as theme parks, attire, out of country explorations, and cruises. In addition, because of the demand, through the expansion, Disney has provided thousands of job opportunities. It would be interesting to compare the unemployment rate of Orlando, Florida with another region, to see if Disney has had a significant impact.
ReplyDeleteFrom looking at the graph which shows the various ticket prices over the years, I am mind blown at how far ticket prices have come ever since Disney World’s inception. Ever since Disney eliminated the price of individual rides, you see almost a double increase in prices two years later in 1983. In terms of jobs, it is also interesting that one out of fifty people working in Florida have a job in Disney World, which is a huge accomplishment. Disney has been growing at a strong pace in the last couple of years. Some big acquisitions of other companies like Marvel Studios and Lucasfilm has further boosted the reputation Disney has achieved over the last few decades and bringing these household names into Disney World will surely see an increase in sales. From the looks of things, I do not see anything that is holding back Disney. The more Disney World grows, the more jobs that will be available and the more it will benefit the U.S economy.
ReplyDeleteWhat a great topic to choose that a lot of people can relate to. I know for a fact that many kids at our school have visited Disney at least once in their lives, and it's interesting to see how long the Disney brand has survived, and how it has even rapidly grown since it's creation in the 1971. The ticket prices seem to not only have increased due to inflation, but also an increase in demand over time that has been driven by consumer expectations. Disney really caters to the whole family, and this family-centered approach widens its consumer population, which therefore increases demand. Also, many families have made Disney a tradition, and that ensures that they will continue to spend money at Disney, so they can keep increasing their ticket prices without having to worry about people refusing to buy them. The amount of jobs that Disney provides to Florida most definitely helped after the recent repression, decreasing the unemployment rate and therefore increasing the state's GDP, which will help consumers reclaim their consumer confidence and allow them to start spending more money which will get our economy back on track. Great post!
ReplyDeleteI definitely agree with KC how amazing it is that Disney has been able to last so long and keep demand increasing over the years. While it seems like Disney has a monopoly on most of the tourist attractions throughout Florida, they've also been able to help the state decrease unemployment and increase GDP as well as increase profit for businesses surrounding Disney. Although I've never been there, $95 seems like a very reasonable price considering all Disney has done in their parks and the increased admissions prices mean there is more profit to increase the salaries of the employees to boost the economy. Nice post Gabby!
ReplyDeleteIt’s no secret that Disney World is one of the most magical places on earth. But I never realized how much of an impact Disney jobs have on the economy. Because Disney is getting bigger and bigger, more jobs will need to be placed in order to meet the demand of people who come to Disney world every day. I never realized how many actual workers are needed to keep the theme park/hotels working correctly. I also didn’t realize how much money Disney workers make. I couldn’t believe that they only made 30,000 a year. Although Disney is one of the most magical places on earth, there are tons and tons of workers behind the scenes making it happen, and we just take it for granted, which is all part of the Disney experience.
ReplyDeleteThe ability for Disneyland to generate so much revenue in a year, and to say this is simply a theme park to say the least, is just astounding. And the vast amount of jobs that Disneyland assist with only goes to show how popular this theme park is, i mean the mere fact this a component of this park generates 2.5% of the states GDP is amazing. This means that the money created here only adds to the economic GDP and etc, in other words this theme park is just a money booster for the country, well needed in every aspect. At a first glance at the chart above, will put you in a bit of shock and awe to see that the prices are so absurd high, but all and all this is simply a needed time at a theme park, and irreplaceable memory in the visitors mind that will never be forgotten so i can understand why prices are so high, you have to put a major price on such a demand.
ReplyDeleteHonestly can say I have never considered on in every 50 people is employed by Disney. I wouldn't have guessed that. Most people think of the theme parks and movie industry, as well as merchandise, which is huge, but given the total number of people spread across the state, I would't have guessed it to make up that large of a percentage. Also, those prices now are ridiculously high. That cannot count for inflation alone, as 3 dollars 40 years ago did not inflate to 95 dollars in recent years. Clearly Disney's popularity among consumers has caused an increase in demand, which might explain why so many people have to be employed and are presumably paid with revenue from the tickets.
ReplyDeleteTypo, that "on" in the first sentence is supposed to be "one".
DeleteI believe that the increase in ticket prices isn't mainly due to inflation alone, but more so a combination of taking advantage of the park's popularity and covering costs from new attractions and worker wages. I know the cost to open the park was originally $400 million, so even $3.50 a ticket back in the 70's sounds insanely cheap.
ReplyDeleteWow, you really like Disney, Gabby! It's interesting to hear how much you know about Disney from your speech and now from your blog comment. You had given me a little background of Disney in Mr. Callies' Speech class, but now you've dived even deeper into what makes Disney, well Disney. I agree, it is a magical place, especially because of how beneficial it is to the economy. I haven't been there in years, so I don't remember how much the tickets were. But those prices sure are crazy. It reminds me a little of Six Flags Great America. Those ticket prices have skyrocketed over the years as well and I'm sure that theme park is doing wonders for the economy, just as Disney World has. I think the thing that surprised me the most was the average annual salary of $30,500. I had no idea that the employees were making so much! Although it's not enough to live comfortably, I wouldn't complain about that pay for just a theme park job! Cool story, thanks for sharing.
ReplyDeleteThe idea that one in fifty people who live in Florida work at Disney is a crazy statistic, and it's really interesting to see how much of an impact Disney has over one state. I personally have never been to Disney world, but I was surprised be the break down of revenue. I thought that the percentage of revenue from consumer products would be so much higher than what it really is, but then again when you think about media networks like Disney Channel and how many cable companies have to pay for that channel to be available on their surface and how many consumers pay to get that channel, it makes sense. I think that your article was really interesting and it was cool to see how Disney affects the economy.
ReplyDeleteAs someone who frequents the Orlando area, I can agree that Disney’s presence creates much of the business in the area. While the locals complain about the crazy traffic and the annoying tourists, they reap the positive externality of having a large and ever changing customer base. Every year thousands of tourists go to Orlando, and many go to local grocery stores, malls, and restaurants. This large amount of people flooding the area clearly is a reason for much of Orlando’s success, and much of Orlando’s job creation.
ReplyDeleteI knew that Disney's prices were expensive, but I didn't realize it was almost a hundred bucks per person, a day! I am sure if I lived in Florida, I would definitely be buying a season pass! Much more cost efficient! I really like that you incorporated Disney not only in econ, but also in your speech, as Marissa Fritz has already said. I haven't been there in years, but I would love to go back, especially if I convince myself that spending a hundred bucks is helping the economy down in Florida that much!
ReplyDeleteWow, this article was actually so interesting. As I have been to Disney world you can't leave there without some mickey ears or by buying a book to get autographs by your favorite Disney character. It's a once in a lifetime experience in which my parents made it seem like everything was an essential. Although that might have something to do with my family be able to travel imagine how many other families take their children to Disney and do the exact same thing. I didn't realize how important Disney was until I saw how many jobs it provided ad if you think about it Disney is located in multiple different continents too.
ReplyDeleteI love this article because Disney is such a fun place to be. However, I think the ticket prices are way too expensive, especially since those who visit Disney need to also stay in hotels in the surrounding areas which increases even more revenue. It is a very expensive trip when families plan to spend time at Disney. I personally have been to Disney in the past year and I spent the nights in the hotels that are connected to the amtrack that takes visitors straight to the park then back to their resort. I loved every moment of it and that's why Disney can raise their prices, because the experience is well worth the price. Great article!
ReplyDeleteIt makes sense that Disney brings in so much money because it's known as the top vacation spot for young children. Seeing the growth in ticket prices over the years is interesting because I never would have thought it would have ever starting as low as $3.50, but even though tickets are now almost one hundred dollars, the benefit of Disney will always outweigh the price so no matter how expensive the tickets are, families will still visit. I didn't think that their income was so helpful to the economy though and that they are responsible for 1/50 jobs. Without Disney, what would happen to the economy? That makes me curious!
ReplyDeleteI absolutely love this topic! I haven't been to Disney World since I was 5 years old but I remember having the time of my life! Although I didn't know what the prices per ticket was back in 2001, but I can't imagine it being as much as it is now. $100 is so expensive for the theme park, but I guess it's understandable since there are many different areas to go in the park and so many attractions to see. After that price rise, I can definitely see how Disney World has generated so much money. And I can only imagine how much the price of the tickets are going to be in the next twenty years. Because as the park and everything connected to it grows, so does the price.
ReplyDeleteWow, I loved Disney the times I went but I never thought that this is the benefit that the Disney company had on the economy. It is amazing to see that the unemployment dropped that much because that greatly benefits the economy even thought the cost pay be high for customers to get into the parks or activies run by disney but the benefit is so good for the economy clearly seeing that the GDP just by disney for Florida is over 2%. Overall this was a really good article and I think you did a great job talking about everything Disney has done in the past few years.
ReplyDeleteDisney did wonders for Florida. Disney is also the reason Florida has no income tax anymore, just a bit higher sales tax, but the tourism pays for all of that alone. It is impressive how it makes up 2% of the entire states GDP, and brings in billions of dollars in profit. The influence Disney had on the state are huge.To drop unemployment by 5% to 7%, to kick start the economy outside its walls and bring in more people each year is wonderful.
ReplyDeleteI had a clue as to how much of a factor was to Florida's economy but I didn't know it was that large. It is hard to believe how quickly disney is continuing to grow. The theme park has been around for such a long time yet as new rides and upgrades come out people are continually attracted. Florida must be absolutely loving it every single time Disney says they are bringing something new. I had no idea that the ticket price was that cheap back then but every time I have gone to disney I have loved it so I would be willing to pay that steep price for a ticket. I think as long as disney continues to stay a quality place to visit the opportunity cost will continue to be worth it to many consumers around the world.
ReplyDeleteI love that you wrote about Disney. It’s crazy that one company can have so much power over an entire economy. I don’t think that many people including me are aware of the impact that Disney has on Florida’s economy. What would happen is all of a sudden Disney started to lose its popularity and it lost much of its business? Would this negatively affect Florida’s economy? It already accounts for 2.5% of Florida’s cumulative GDP. If Disney went under then the unemployment rate would also increase considering Disney is responsible for more than one of every 50 jobs in the entire states. Is Florida completely replying on Disney to stay in business? Would they survive without it or would they die?
ReplyDeleteI went to Disney for the first time in 1999 when I was 3, and the price of tickets has already doubled. In my life time, I haven't noticed inflation that much, but this makes it very clear. It also shows how popular Disney has become. Disney alone makes up over 2% of Florida's GDP. It's hard to believe people only make an average of over $30,000 who are associated with such a successful business.
ReplyDeleteDisney is definitely one of the main attractions of Florida. My family and I go there about every year and every time we go it's always packed. Disney World really does do good for Florida's economy. People are there from all over the world. With the increasing prices really only helps the business because I think that people will still go to Disney no matter what because of how well known it is. The Disney theme park itself, is huge and it's no wonder that the unemployment rate went way down thanks to Disney. One thing I did not know, though, was that the employees made only 30,000 a year. I figured they would make much more than that considering how well the Disney theme parks do. By increasing GDP and also being able to increase Disney profits also helps for the economy.
ReplyDeleteI guess Disney World or Land is the most magical place on earth. It’s the only amusement park that entertains kids and has a significant impact on the economy. The fact that Disney has employed around 59,000 workers and had brought down the unemployment rate in Florida is amazing. It almost makes you think that if there is ever another recession, we can just move to Florida and work there. I’ve only known amusement parks to help entertain kids and make families closer, but i’ve never heard of an amusement park effecting the economy, it’s like everything we enjoy goes right back to the economy.
ReplyDeleteIt is amazing how Disney World made a huge impact to Florida's economy and the country's economy. The fact that the unemployment rate dropped from 12% to 7% is huge. It is also insane to see that back in 1971 the price for a ticket was only $3.50 and now it is $95. That's huge inflation.
ReplyDeleteI was extremely surprised that tickets were only $3.50 back in 1971 where of now it is $95. I am rather interested on how the admission statistics have changed from 1971-2014, do the statistics go with the inflation rate or do they keep jacking up the prices to compensate for the lowering amounts of people going? And going along with what Angela said with Disney being there the unemployment dropped 5%, that is insane! I also didn't realize that Disney had 59 thousand workers to support their needs and for someone fresh out of high school and not wanting to go to school right away making 30,000 a year isn't so bad if your living on your own and just saving up!
ReplyDeleteIt's amazing how much prices have gone up since 1971, 3.50 to get into Disney is crazy because I don't think you can buy anything from Disney now a days that is that cheap. With all the work put into Disney I can see why the prices have raised, it is an amazing places to go and I believe everyone should at least experience Disney once. It doesn't surprise me that Disney has such a positive impact on the economy, because everyone wants to take their kids their just once, it's all kids dreams. I know when I was younger that's all I asked to go to and my parents ended up taking me and it was an experience of a lifetime. Even though the prices are high it's definitely worth it to go. Great article!
ReplyDeleteWhen I was younger, my family would always go to Disney World on vacation. In fact, my family owns a timeshare in Orlando Florida because of how often we would go to Disney. Although it isn't a Disney timeshare, the reason my family purchased it was because of Disney. People from all over the world dream of going to Disney World, it's not just popular in the United States. Going to Disney may seem expensive but people are willing to pay the money even though it is expensive. I can definatley see how this has a positive impact on the economy in Florida.
ReplyDeleteI only ever visited Disney World once as a kid, and I remember how truly fascinated I was and wanted to know why everything was so expensive. After reading this amazing piece, I really see how wonderful the parks are to Florida's economy. I hope there's a similar effect in the economy of California's Disneyland. I also love how the people who work for Disney are always so cheery and some of the kindest people you will ever meet, and that's how they naturally are. As always, better service makes people want to return and spend more due to the quality of service. I certainly think Disney knows what they are doing in terms of the revenue they bring in, and I'm glad they use the money to benefit Florida's economy, rather than keeping a good portion of the money for themselves.
ReplyDeleteIt amazing on how cheep it was just in the 70's. I thought that it would be way more but for the fact that it's 95$ just in 2013 is insane. I'm Impressed on how much they have made over the years. Although it is expensive for a ticket, it helps the economy of Florida majorly. It not that its unfair or anything it just might be hard for others to pay that. If they can pay they can help the economy but if not they're helping the economy in some way and that what matters.
ReplyDeleteWhile Disney World has a huge impact on the economy, and employs thousands of people, it would have been interesting to hear how the recession affected Disney World. A family vacation here is very expensive (I was lucky enough to go for free). Your chart showing the increase in ticket prices, I noticed they didn't increase until after the economy was recovering from the recession. I would think the recession would have had a big impact on Disney, because vacations were the first things that people cut out of their budget.
ReplyDeleteI always figured that Disney World was a crucial staple to Florida's economy, but I never really put together how many people it employs and how much revenue it brings in for the state. Theme parks are known for being ridiculously expensive, but I am somewhat shocked seeing just how much ticket prices increase every year. I see Disney being elastic but also inelastic at the same time. Even though people are going to cut back going to disney world if the economy isnt booming, people still are going to go and not only buy tickets but buy things in the park, regardless of its expense, which is why they can kind of get away with raising the prices so much.
ReplyDeleteDisney World seems like a cool place to go to because there's disney character's walking around and a castle that you can go to. I am not surprised that Florida can create so many jobs and profit from Disney World because a lot of people enjoy going there for family vacations. Besides Disney World there is also Universal Studios which I bet brings in a lot of profit and jobs too. It was interesting to find out that 1 in 50 people in the state of Florida work at Disney World. If I lived in Florida I would probably apply for a job there too and be Mickey mouse or something. The price increase from 1971 is a huge difference, but it makes sense that it has gone up so much because of the changing economy and a lot of people wanting to visit there. Good job writing this blog, it was interesting.
ReplyDeleteI thought that the information and statistics that you provided were absolutely astounding and really interesting to consider. I wonder though that if the price continues to increase if at some point the opportunity cost will be too high to attend. I agree though that at this moment Disney is a necessary and crucial part of the Economy and hopefully it beneficial economic impact will continue.
ReplyDeleteI really liked this topic! Though everyone knows that Disney is a large and well-known company, I don’t think that most realize what a big effect it actually has on the economy. All of your information was interesting, and most of the time rather surprising. I do believe that Disney is an important part of any childhood, as the prices rise (like the ticket prices) I almost have to wonder if parents are always going to think it’s worth the money. The opportunity cost of spending that money somewhere else may outweigh the opportunity cost of actually attending the parks, resorts, or cruises.
ReplyDeleteI always knew that disney brought in a huge amount of money into our economy but I never realized how much. After reading this I realize how smart they are to actually raise the prices, because with the amount of money they are bringing in just from tickets is outstanding. However the amount of fun that you can have there heavily outweighs the amount of money you have to pay to get there, and the amount of money you have to pay to be able to have the fun. This is a really great topic and makes you really think!
ReplyDelete