Disney sends a powerful message to Ron DeSantis and CFTOD with new report highlighting Disney's immense value to the state of Florida

Nov 14, 2023 in "The Walt Disney Company"

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Team Disney Orlando

Posted: Tuesday November 14, 2023 12:05pm ET by WDWMAGIC Staff

Walt Disney World Resort generated $40 billion in economic impact across the state and more than a quarter of a million total jobs in fiscal year 2022, according to a new study from Oxford Economics announced today.

The new report comes at a time when Disney is locked in multiple lawsuits with the Florida Governor Ron DeSantis, and his Central Florida Tourism Oversight District which replaced Disney's Reedy Creek Improvement District as the governing body in which Walt Disney World resides. Disney claims in its lawsuit filed in a federal court that there has been "A targeted campaign of government retaliation-orchestrated at every step by Governor DeSantis as punishment for Disney's protected speech-now threatens Disney's business operations, jeopardizes its economic future in the region, and violates its constitutional rights."

According to today's report, Disney generated in 2022:

$40.3 billion in total statewide economic impact.
263,000 direct and indirect jobs – 1 out of every 32 jobs in the state.

This figure includes Disney's workforce of 82,000 across the state. Within Central Florida, Disney directly supports 12%, or 1-in-8, of all jobs. For every direct job on-site at Disney, an additional 1.7 jobs are supported across Florida. Without Disney's statewide job impact, Florida's unemployment would jump from 3% to 5.4%, which would take Florida from the 21st lowest unemployment rate among all 50 states to the second highest unemployment rate in the country. Disney revenues and off-site visitor spending contributed to $12.1 billion in total labor income in fiscal year 2022.
$6.6 billion in tax revenue, including $3.1 billion in annual state and local tax revenue generated by Disney, visitors, employees and third-party businesses – helping to fund local schools, law enforcement, public safety, parks, roadways and more throughout Central Florida.
2,500 Florida-based small businesses contracted to supply products and services to Disney World.
Part of the more than 8,500 small businesses across the country contracted by The Walt Disney Company.

The study, which was commissioned by Disney, also reflects the economic impact of Disney Signature Experiences in Florida, including Disney Vacation Club and Disney Cruise Line.

Disney points out that the results are for fiscal year 2022, prior to the Reedy Creek Improvement District becoming the Central Florida Tourism Oversight District with the appointment of a new Ron DeSantis board.

This week also marks the 58th anniversary since the now-famous press conference in Orlando where Walt and Roy Disney announced their "Florida Project" alongside then-Florida Governor Haydon Burns.

"Disney is an economic catalyst to the state of Florida, generating billions in economic activity, either directly or indirectly through its supply chain and the spending of employees," said Adam Sacks, President of Tourism Economics, a division of Oxford Economics. "Disney is also vital to the funding of public services, as it generated taxes of $6.6 billion in 2022, including state and local taxes of $3.1 billion."

"I am incredibly proud of how Disney has created meaningful change and benefitted people's lives in Florida for generations, not just in establishing our area's theme park industry, but also in how we have worked with other sectors across the state to do the same," said Jeff Vahle, President, Walt Disney World Resort. "The numbers speak for themselves on why Disney is so important to fueling jobs, the economy and tourism throughout our region, and the future investments we're looking to make will continue to provide even more opportunities for Floridians."

In fiscal year 2022, Disney paid and collected a combined $1.1 billion in state and local taxes to Orange and Osceola Counties and the state of Florida, as well as to the Central Florida Tourism Oversight District. The Florida State Legislature established this special district, formerly known as the Reedy Creek Improvement District, in 1967 to help provide services, including power, water, roads and fire protection for the 47-square miles of Walt Disney World Resort.

Throughout its history, this district was a cost-effective mechanism in ensuring the tax burden for these services did not fall on Orange and Osceola County residents. It allowed Disney to efficiently invest tens of billions of dollars in Florida over the past several decades by maintaining the highest development and service standards on Disney property.

To quantify the economic impact of Disney in Florida, Oxford Economics prepared a comprehensive model using multiple primary and secondary data sources to quantify the impacts arising from multiple channels of spending attributable to Disney. Impact modeling was based on an IMPLAN Input-Output (I-O) model for the State of Florida, and the results of this study show the scope of Disney's impact in terms of revenue and operational spending, as well as total economic impacts, including total business sales, employment, household income, and fiscal (tax) impacts.

Disney Generates $40 Billion in Annual Economic Impact in Florida

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mkt20 minutes ago

You’re right that there wasn’t a massive public rally to defend Disney. At least not in the way we often see with political figures or causes. But that doesn’t mean they lost the PR battle. It just means they played it differently. They didn’t need cheering crowds. They let the state’s actions speak for themselves. The Lake Nona cancellation - whether intentional or not - ended up being the loudest statement. Thousands of high-paying jobs. Gone. Local business groups noticed. Real estate noticed. Economists noticed. That stuck. Meanwhile, the “win” Florida claimed was largely symbolic - swapping one board for another - while Disney kept building, kept expanding, and retained the infrastructure and bond authority they needed. The machine never stopped. And let’s not forget: the only only people visibly waving flags on the property line during this entire episode? They were on the state’s side, and those flags bore symbols we all agree have no place in a civilized society. So no - Disney didn’t lose the PR war. They just didn’t fight it with soundbites. They let time and economic impact do the talking.

flynnibus27 minutes ago

Who came to defend Disney? Who lined up to call out DeSantis' action? Who lined up to point out the cabel action in the Legislature? Who used Disney as an example of what can happen? I'm not talking about who wrote stories to cover the news.. I'm talking about who put their name on the line to call out the injustice that was happening? How many people did you hear regurgitating the false propoganda about taxes? How many people did you hear thinking this RCID thing was some long running scam that was time to go? I'm talking about who the gen pop saw as in the wrong... most did not flock to defend Disney... they saw it as some corporate scam that finally was being taken down.. Disney was pretty much the target of the most direct, blatant, outright cheered political driven retribution I can think of in any recent memory... and the gen pop thinks DeSantis was eliminating corporate benefits and DEI non-sense. That's the PR battle Disney lost.

Prince-128 minutes ago

Oh Ronnie didn't need Disney's help to accomplish that. He was never going to be president.

MR.Dis33 minutes ago

Disney won in one respect, this incident totally destroyed a certain Govenors hope of ever being seen as Presidential material.

mkt40 minutes ago

That’s a fair framing if you’re evaluating from a strictly structural standpoint Yes, Disney no longer controls the board, and yes, they negotiated toward a new normal rather than scorched-earth resistance. But to say they “lost the PR battle”? I strongly disagree. Florida came off as punitive, erratic, and willing to jeopardize thousands of high-paying jobs over a political tantrum. The Lake Nona cancellation - whether coincidental or not - felt like fallout, and perception did the heavy lifting. That loss is now linked to the state’s actions. No press release needed. Florida is viewed as having cost the region several thousand high earners, along with their housing demand, business growth, and tax revenue. That’s not just bad optics. That’s third-world-level policy sabotage. Meanwhile, Disney kept building. The board that was supposed to rein them in greenlit a $17B expansion. Bond authority stayed. Infrastructure control stayed. Functionally, nothing stopped. Sure, the expansion brings jobs. But they're mostly tourism and hospitality roles. These aren't six-figure white collar transfers — they're hourly park positions. Florida traded a long-term white-collar boom for a short-term PR win and a few more popcorn carts. That’s not a victory. That’s a downgrade. If anything, Disney let Florida win the headline, then quietly walked away with the outcome. That’s not “dealing with the devil.” That’s knowing when to let the devil shake his fist at a cloud while you pour the foundation for your next park expansion.

LAKid5347 minutes ago

Precisely

UNCgolf52 minutes ago

Indeed. And while I wish Disney had fought to the end, that was never likely. Publicly traded corporations just don't really operate that way. For example, I've represented corporate clients who had a good chance of prevailing against the government in regulatory investigations, but they would have spent more on the fight than they spent on the settlement -- so they settled. There's always going to be a cost/benefit analysis (which often involves more than just the potential legal fees) regardless of whether they think they're right. Incidentally, this is one of the reasons Harvard is more likely to fight to the end in their current litigation (although that's certainly not guaranteed). They don't have to worry about shareholders, although they do have some other outside concerns.

mkt53 minutes ago

I’m not saying the federal case was a slam dunk - just that it existed as leverage. Whether or not Disney would’ve won, the filing let them signal "We’re not done here" and gave them a legal foothold to keep the conversation going on their terms. Especially if the next version landed in front of a more sympathetic judge. Did Florida technically get what it wanted? Sure - RCID was dissolved, and they got to appoint their own board. But functionally, Disney’s still operating almost exactly as before. The board isn’t pushing back. Permits are gliding through. That’s billions in infrastructure and expansion moving forward without friction. So if we’re scoring this on optics, Florida "won." But if we’re scoring on actual outcomes? Disney never really stopped. I’d call that a check, not a checkmate.

Chi841 hour ago

We don’t know what would have happened if Disney hadn’t settled. But government bullying definitely had its day.

flynnibus1 hour ago

Well because there was a distinct pivot in Disney's approach to the entire story here.. and it coincided with the change in CEO. And some people are painting Disney of 2022 the same as the Disney of 2024 as if there is a continuity there.. when there is a very stark CHANGE that happened.. so being explicit in what was behind that change matters. The comment refers to accepting CFTOD as it is and how it's managed, and the policies that drive it vs what existed prior. We can see even now, how almost overnight the CFTOD can go from "friendly" to combative... and flip again almost as quickly. That's the new world world they have accepted. Disney was the party impacted - it is on Disney to fight that fight if anyone were to file suit to contest it. Others can't do it from the outside...

UNCgolf3 hours ago

The federal case isn't significant legal pressure. The state never seemed overly concerned about it -- and as I said above, while I personally think it should be an open and shut "chilling effect" case, it likely wouldn't be. Florida would have a realistic chance of winning; it's far from a guaranteed victory for Disney. Florida essentially got what they wanted. Disney, on the other hand, started with one thing and ended with a lesser thing for no reason other than governmental bullying. They lost something while gaining nothing. If you want to claim that it's a win for Disney in terms of what happened after RCID was eliminated, then that's at least arguable, but I don't think any company would consider it a victory from the original starting point. As I said before, Disney mitigated their losses, but they certainly didn't win.

Chi843 hours ago

We may be saying exactly the same thing using different words. You’re compartmentalizing the company into “Disney” and “the CEO.” I’m saying Disney cared (somewhat) about the fight but Disney wanted the problem to go away and made a business decision to make that happen. I don’t know about characterizing it as “accepting a new world order,” although I’m certain many people see it that way. My main point is that if there’s a new world order, it isn’t Disney bringing it into existence. And expecting a corporation to take the lead in ensuring people’s rights is bound to lead to disappointment because that is not their goal.

flynnibus3 hours ago

Disney is "winning" in that they negotiated a truce that cleared the cloud out from over the immediate business. But they lost in that they had to concede that was the best position they can settle for now and there was no consequence nor limit to the GOP targeting them. They lost that a single side of the legislature was able to act as a group and forcibly remove what the company had so carefully crafted for nearly 60yrs. They lost in that the general public did not see this action as a government illegally targeting a business, but as something justified and needed. They lost the PR battle They lost control of the district They had to backdown from supporting their employees They negotiated in the backroom to simply forge a new "understanding" that results in a truce and agreement to allow Disney to commit to spending big money in FL They have no assurances that the wind won't change tomorrow - and a new heavy handed person in Tallahassee doesn't start bullying for something else Meanwhile, the very actions that allowed Disney to be targeted and forced them to concede still exist and continue as allowed. This is why I say Disney secured a truce - nothing more. Iger was able to navigate the situation DeSantis was in to quietly secure a return to status quo... without requiring an admission of guilt and allow both sides to claim to 'wins'. At the end of the day, Disney dealt with the devil to just keep the machine running. They didn't get rid of the devil or free themselves from his will...

flynnibus3 hours ago

DeSantis cared enough about it to make it the cross to hang Disney on and literally point the cannon at his state's biggest employer. What DeSantis cared about was the dissent and countering his political platform point. When that platform no longer suited his purpose, he was willing to let the topic go. Disney cared enough to make it a topic until they had to choose between digging in and accepting a new world order. The new boss chose the later.. smile, shake hands, and derisk the business. The lawsuits did not fire all the bullets Disney had - Disney took very focused action - a narrow focus to defend the DA and entrenchment Disney had setup -- Rather than tackling the larger 1A topics. So I don't agree with labeling the lawsuits being "the be all end all for Disney". Disney responded in a very narrow focus and kept stuff in reserve... but the new boss made it clear they had no appetite for a public fight. A stance he made clear even before returning to the company - Iger wanted to remove the gov as a roadblock and made concessions to do it. The landscape changed when DeSantis' political career shifted and it opened the door for both sides to make a "business first" agreement. The narrative that Disney was cool with the changes from the start is non-sense.. and I don't agree with the assessment they are in the same spot they were before. I also don't agree with Disney not caring about the fight.. they simply have a CEO who wanted the problem to go away and they negotiated a way to get there.