It is a nice feeling to have relaxing distractions in distressing times, and the Disney Cruise Lines will be providing some much needed amusement that could uplift the leisure and entertainment sector, along with its exchange traded fund (ETF).
Walt Disney Co. (DIS) and the City of Los Angeles are planning to base a Disney cruise ship, the Disney Wonder, in the Port of Los Angeles starting in 2011, reports Hugo Martin for The Los Angeles Times.
The Disney Wonder is expected to operate for two years with a three-year extension option. During a five-year term, the venture is estimated to create 2,600 jobs in the region, generate up to $7 million in state and local taxes and serve around 250,000 passengers. Disney has been cutting some jobs at its parks, though.
Once the Disney Wonder moves out of Port Canaveral in Florida, two more new cruise ships, the Disney Dream and Disney Fanatasy, will start to operate out of Florida in 2011 and 2012.
Walt Disney Parks and Resorts Chairman Jay Rasulo remains hopeful that this new plan will be fruitful. U.S. travel and tourism in the fourth quarter experienced its sharpest drop since the terrorist attacks of 2001.
- PowerShares Dynamic Leisure & Entertain (PEJ): down 5.7% year-to-date; DIS is 4.3%
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.