Disneyland Cuts Prices for Those From Southland

For the first time in its 35-year history, Disneyland said Monday that it will temporarily cut its price at the admission gate, a reversal that analysts saw as a further sign of the recession’s impact on the Southland’s tourism business.

From Saturday until March 3, Disneyland will slash its one-day admission price to $20 for visitors who reside in Southern California. The park charges $27.50 for adults and $22.50 for children ages 3 to 11.

Knott’s Berry Farm recently announced a reduction in the price of children’s tickets and last week said it will temporarily close the Buena Park theme park on Tuesdays and Wednesdays for the first time in five years. Knott’s officials have contended that neither move was a result of the weak economy.

“I think the price cut is a reflection of obviously deteriorating economic conditions,” said Mark Manson, an analyst for Donaldson Lufkin & Jenrette in New York. “Historically, admission at Disney’s theme parks has suffered during recessions and there is no reason why this recession would be any different.”

Disneyland officials said the ticket price cut has been planned since last September as a way of boosting park attendance during the traditionally slow winter season.

“It’s a change so that Southern Californians can come out and go on all the rides and attractions that have been their favorites for 35 years,” said Disneyland President Jack Lindquist.

Economic conditions are a factor, he said, but “I don’t think it’s fair to say it’s totally a response to that.”

Disneyland has raised its prices 11 times since June, 1982. The latest increase, in October, boosted the cost of a family of four--two adults and two kids--to an even $100. Under the temporary price cuts, the same family would pay $80 to visit the Magic Kingdom.

Through most of the year, Disneyland’s attendance is about equally divided between people from the Southland and those living outside the region. During the winter, however, the park relies more heavily on Southern California visitors.

Disneyland has offered corporate discounts, special company employee nights and other discount programs, including a promotion last year in conjunction with Von’s supermarkets. But the $20 admission price marks the first time Disneyland has offered a discount directly at the admission gate.

As part of the “Resident Salute” promotion, Disneyland is also offering a night’s stay at the Disneyland Hotel, hotel parking and two tickets to the theme park for $119.

While price cuts are new to Disneyland, Walt Disney Co. has been offering Florida residents a $10 discount off the regular adult admission price for entrance to Walt Disney World, Epcot Center or the Disney-MGM Studio Theme Park, all near Orlando, Fla.

Under the Disneyland program, any adult can buy up to five admission tickets after presenting a driver’s license or other identification that shows residency in the Southern California ZIP codes 90000 through 93599. Those ZIP codes range from San Luis Obispo and Bishop in the north to the Mexican border in the south.

At least one analyst questioned whether Disneyland’s two-tiered pricing structure--one for locals and one for tourists--might generate some bad feelings among visitors stuck with paying the higher price.

“It seems to me to create a few issues . . . if the fellow in front of me is paying less than I am,” said Emanuel Gerard, an analyst for Gerard Klauer Mattison & Co., a New York brokerage. “It could create some public relations problems.”

But Gerard said admission price cuts are a reasonable response to a decline in attendance. The costs of operating a theme park remains generally the same whether attendance is heavy or light. The temporary price cut, he said, could help Disney officials determine how sensitive the local tourism market is to changes in admission.