by Annie Scott
February 16, 2009

In what is arguably one of the gloomiest and most overwhelmingly unpleasant times in recent history, I couldn’t help but wonder: how is the global economic meltdown affecting The Happiest Place on Earth?

How is Disneyland, my neighbor to the north, coping with all of this bad news? Is the pricey Place Where Dreams Come True hurting for visitors, as nearly all households tighten their belts and pare down family entertainment and travel budgets? Is the world-renowned beacon of optimism, Disney magic and happy endings feeling the pain that’s crippling so many other businesses?

Or are people flocking there in droves to indulge in a little escapism from the utterly uninspiring world that exists beyond the gates of the Magic Kingdom?

On February 2, the Walt Disney Company announced part of the answer: first fiscal quarter profits fell 32 percent, due in part to lower attendance at its theme parks around the world. On the other hand, as reported in Business Week, Disney CEO and President Bob Iger said attendance was actually up at both Walt Disney World and Disneyland — by double digits in southern California.

Maybe Americans need to go to their happy place more now than ever.

Personally, I find that two-digit increase in Disneyland attendance nothing short of extraordinary. When you consider that the price of a One-Day Park Hopper ticket (admission to Disneyland and Disney’s California Adventure park next door) for a non-southern California resident costs $94 ($84 for kids under 10) without some sort of discount, it is even more impressive.

I scoured a few Disney-focused blogs and was fascinated to read the defiant tone of a number of posters’ responses about whether the recession will deter people from visiting the parks. The general sense of most Disney die-hards was simple: the state of the economy doesn’t matter because we love going to Disneyland and we are not sacrificing our Disney vacations.

Now that’s impressive.

How is Disney so adept at keeping the Magic alive for so many when times are this tough? It helps exponentially, of course, when you are backed by one of the world’s most powerful, diversified and beloved brands, the pied piper of children age three to 103. The “Disney Difference,” as its magnificent PR machine refers to it with investors, cannot be underestimated. But are Disney executives facing the same need for sacrifices, tough choices, layoffs, cutbacks and strategic plans that everyone else is?

“Cost containment measures” do abound. As Mr. Iger stated, “We faced a challenging first quarter with many of our businesses impacted to various degrees by the economic downturn. We are forcefully confronting current circumstance while investing in the great creativity, brands and assets that are Disney’s strengths and keys to its long-term success.”

Sounds great, but what’s the translation? Best as I can make out, it means they have found some alternative ways to move forward.

Disneyland now offers a huge number of deals and discounts, and looks to be trying hard to present itself as a value destination rather than a splurge-because-your-dreams-are-worth-it vacation. A wise move and a good start.

To maximize the impact of these discounts, the marketing team announced in September that throughout 2009 you can visit Disneyland and Disney World free of charge on your birthday. They wrapped this unprecedented announcement in a press release explaining that Disney is now leading the growing “Celebration Vacation” trend. It’s a clever way to encourage visitors to spend landmark occasions such as birthdays, anniversaries or achievements in its parks.

Disneyland’s approach seems as optimistic as the mighty Mouse himself, and that optimism sparks more innovative ways of rising to the challenge. Disney has always been masterful at maintaining image and relevancy throughout its history — a constant, vigilantly happy presence in a sea of change, progress and cyclical turmoil.

Also impressive is the fact that Disneyland is not skimping on its charitable activities, and continues to seek and develop new ways to green its image and practices. Its philanthropic programs support a number of community agencies. For example, the innovative Cast Members’ (employees’) recycling program, run by the “Disney VoluntEARS,” makes generous contributions to the nonprofit organization where I work. Disneyland also encourages its Cast Members to become VoluntEARS and give back to their communities by participating in a range of service projects and activities.

Considering all of this, it suggests that Disneyland knows a thing or two about hope and planning long term (what is hope if not an eye to the future?) as well as a knack for adding value during revenue lulls. Imagine the return on these “investments” in value when the economy does recover. Mickey isn’t going to let a recession slow him in his quest to make a friend for life out of everyone.

Count me in the Mouse’s club. I vividly remember the Disneyland trips from my childhood, when my grandparents would take my siblings and me on the pilgrimage. I had no idea what anything cost, of course; I just knew I was in kid nirvana the second I was inside those gates.

When I returned as an adult in pre-recession 2007, I found myself buoyed by the same sense of euphoria. I also fought the urge to choke every time I went to pay for something. Nonetheless, the mix of fantastic memories — old and new — was worth every single penny.

Annie Scott lives and works in San Diego and sends dispatches back to her beloved Michigan.