Cedar Point facing financial challenges because of COVID-19

SANDUSKY — Cedar Point experienced one of its best year last summer with attendance swelling to the point that the causeway became lined with cars waiting to get into the park. With celebrations planned for its 150th anniversary, 2020 promised to be another banner year, but the COVID-19 pandemic knocked its plans off their track. Now Cedar Point, its parent company Cedar Fair, and the amusement park industry faces its greatest challenge since the Great Depression. "From a revenue standpoint, it's catastrophic," said Dennis Speigel, CEO of the International Theme Park Service in Cincinnati. "We've never experienced anything like this before, and we are still in the midst of understanding it." Spiegel estimated that industry losses would be in the billions of dollars since parks across the country have closed, and seasonal parks, like Cedar Point, which initially planned to open May 9, have pushed their openings back indefinitely. "None of the major park operators at this time know when they're going to be able to open officially," Spiegel said. The longer parks go without opening, the more significant of an impact it will have on its revenue, mainly for Cedar Fair parks like Cedar Point and Kings Island near Cincinnati, which only open for a part of the year. "We don't have the luxury of making up time in November," said Lee Alexakos, Cedar Fair's vice president of community relations, in her testimony to the Ohio House Economic Recovery Task Force. "We have one shot, and it's just a few months." Speigel said seasonal parks at this time of year would be marketing new attractions, getting rides certified and training employees, but they've missed all of those opportunities due to the virus. In her testimony, Alexakos highlighted their parks' importance to local economies since they bring thousands of people to the community, create thousands of jobs and bring in about $400 million in taxes. "When most people in the world think of Sandusky, they think of Cedar Point, and that's because of the amazing role it's played in our community and economy for 150 years," Sandusky city manager Eric Wobser said. "If Cedar Point were unable to open or even have a delayed opening, it would have a devastating impact on the hundreds of businesses and thousands of residents who count on it for revenue." According to Wobser, admission tax from the park accounts for 20 percent of the city's operating budget, and that's not even taking into account the lodging tax and sales tax. "Because of Sandusky's smaller size and Cedar Point's importance, its closure for the season would likely make us the most negatively impacted city in the state, if not the country, from COVID-19," Wobser said. The government plans to start reopening the economy, but Alexakos said parks would need four to six weeks notice to prepare for openings. "You can't flip a switch and open. You have to start the engines slowly," Speigel said. When asked if he thought Cedar Point and Kings Island could remain closed for the year if their opening days are too late to recoup operating costs back, Speigel said there were too many variables for anyone to answer. "When some of the bans are lifted, and people start going out, parks have to evaluate if it makes sense to partially open for the season," Speigel said. "One of the questions they need to find an answer to is: If we open, will they come?" If a park does remain closed, Speigel said business interpretation insurance wouldn't cover closures from the virus. But Wobser remains optimistic that the park will open. "We're all anxiously awaiting the date when Cedar Point can open safely, and we look forward to welcoming their visitors to the community," Wobser said. There are, however, concerns in the industry that people will still avoid large venues even after states lift stay-at-home orders due to fear of contracting the virus. To assail those fears, park operators like Cedar Fair, which is on a task force set up by Gov. Mike DeWine for large venues, are working with state governments to develop protocols to protect guests and employees. "It's not only going to affect the parks, but it's also going to affect the guests' experience," Speigel said. These protocols will most likely include face coverings, restrictions on capacity, more frequent sanitization of rides and ensuring social distancing in lines. "The parks won't be able to operate at the same speed and efficiency as before," Speigel said. "It's all going to add to the cycle time for rides, which cuts back on the guests' fun."