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If Disney is no longer welcome in Florida, it should look at Nevada

by Index Investing News
May 22, 2023
in Opinion
Reading Time: 4 mins read
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Jae C. Hong / AP, file

Visitors walk toward Sleeping Beauty’s Castle in the background at Disneyland Resort on Jan. 22, 2015, in Anaheim, Calif. Disney CEO Bob Iger on Monday, April 3, 2023, called efforts by Florida Gov. Ron DeSantis and the Republican-controlled Florida Legislature to retaliate against the company for its policy positions as not only “anti-business but anti-Florida.”

Monday, May 22, 2023 | 2 a.m.

As the Sorcerer’s Apprentice, Mickey Mouse made mops and brooms dance amid a spectacle of sound, lights and water. On Thursday, Mickey performed yet another magic trick, making an estimated $1.3 billion and 2,000 high-paying jobs disappear from the Florida economy after Disney pulled the plug on a proposed office complex in the Lake Nona neighborhood of Orlando.

Josh D’Amaro, Disney’s theme park and consumer products chairman, cited “changing business conditions” for the reversal. That’s a polite way of saying that Florida Gov. Ron DeSantis’ “war on woke” has made it clear that Disney is no longer welcome and that Florida is no longer friendly to businesses.

Following public criticism of DeSantis by Disney’s former CEO, Bob Chapek, the governor and his fellow GOP authoritarians in the Florida Legislature launched an all-out assault on free speech and private enterprise in the Sunshine State, going to unprecedented lengths to silence, marginalize and otherwise punish individuals, educators and businesses that disagree with them.

DeSantis’ attacks on Disney have been particularly bold and include introducing legislation to nullify Disney development contracts and seize control of the oversight board for the special district where Walt Disney World resort is located.

In short, DeSantis is using the power of the government to retaliate against Disney. The First Amendment specifically prohibits the government from engaging in this type of retaliation and Disney is suing to enforce its rights. But while the case moves through the courts, Disney is also putting DeSantis and the people of Florida on notice that there is a lot of money on the line should DeSantis continue his relentless attacks on the state’s largest employer.

In addition to the direct losses from the Lake Nona project’s cancellation, dozens of local small businesses also stand to lose millions in economic activity. In January, The Orlando Business Journal praised the development, promoting it as “a major economic driver for the region” that was leading numerous hotels, restaurants, caterers and retailers to move into the neighborhood.Tragically, it will take a lot more than a dancing mop and bucket to save those businesses.

D’Amaro has indicated that an additional $17 billion in future investments in and around Disney World Resorts are also being revisited.

But Orlando’s losses could be Las Vegas’ gains. As Disney seeks to relocate thousands of jobs out of California to states with lower taxes, cheaper land and more affordable cost of living, Disney CEO Bob Iger should look to Las Vegas.

After all, Las Vegas is already the Entertainment Capital of the World and home to some of the biggest names in the entertainment industry. While headliners take the stage, an army of expert sound, lighting, choreography, hair, makeup, costuming and technical designers call Las Vegas home.

With UNLV Harrah College of Hospitality, we’re also home to the best and brightest rising stars in the hospitality industry.

We’re located less than 300 miles from Disney’s headquarters and studios in Burbank, Calif., and Disneyland Park in Anaheim, Calif. With Interstate 15, an extensive number of daily flights between Las Vegas to Southern California and a high-speed rail line connecting the two regions expected to open within the decade, Las Vegas and Southern California have never been closer or easier to transit.

Moreover, Nevada has low taxes and a business-friendly climate that has already placed Las Vegas, Henderson and Reno among the top 10 relocation cities for California businesses, according to the Greater Las Vegas Realtor Association. With plans to expand Nevada’s film tax credit program to $190 million annually, the opportunities for a company like Disney are limitless.

Perhaps most importantly, however, Las Vegas shares the values of Disney and its staff. We are a city of creative and competitive artists, performers, hospitality specialists and business tycoons who believe in dignity, respect and free speech for our visitors, guests and neighbors, no matter their background or identity. Like the Sorcerer’s Apprentice, we also believe in the power of magic to help us all get a little rest and relaxation while we are transported to new worlds via dazzling lights, immersive sound, dancing water and awe-inspiring performances.

Just over one year ago, shortly after DeSantis signed the now-infamous “Don’t Say Gay” legislation, we argued that “some portion of Florida’s 117 million annual tourists may be looking to visit a state that doesn’t actively put politics above the lives of its children.” We also sent “a whole-hearted thank-you to DeSantis and Florida Republicans for what is likely to be their multibillion-dollar gift to Las Vegas, paid for on the backs of Florida taxpayers.”

Thirteen months later, a record-breaking number of travelers and tourists has led to a new boom of development in Las Vegas. Florida’s loss has already been Nevada’s gain. Now it could be Disney’s gain as well.





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