SeaWorld’s $300 Million Plan to Bounce Back From the ‘Blackfish’ Backlash

Are SeaWorld’s days numbered? According to CBS News, the marine park’s stock is down more than 50 percent and profits continue to decline. As the park’s busy summer season approaches, it’s time to take a look at SeaWorld’s sudden decline and its plans to revive its damaged reputation.

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SeaWorld Experiences Revenue Drop After ‘Blackfish’

In the last five years, SeaWorld Entertainment has endured a storm of criticism and negative publicity. In 2010, one of the park’s female trainers was killed by a male orca at SeaWorld Orlando. Three years later, “Blackfish” — a scathing documentary about the alleged abuse and mistreatment of the park’s whales — released. Since then, SeaWorld has been plagued with multiple lawsuits from both shareholders and park-goers, citing irresponsible business practices and animal cruelty.

Now it seems all the bad press is catching up to the company, which has been in business since 1959. The Wall Street Journal reported in February 2015 that attendance to the parks declined 4.2 percent in 2014. According to The Wall Street Journal, SeaWorld had a fourth-quarter loss of $25.4 million, which is more than $12 million less from the year prior.

The company’s former chief executive Jim Atchison told CBS News last year, “Clearly, 2014 has failed to meet our expectations.” SeaWorld also cited “negative media attention” as a reason why business is suffering.

Atchison didn’t call out “Blackfish” as the main driver of the negative media attention, but the impact of the controversial film is undeniable. After the documentary’s release, many of SeaWorld’s corporate partnerships were cancelled, including Virgin America, Alaska Air and Southwest Airlines. Performers such as Willie Nelson and Trish Yearwood also refused to play concerts at the park’s venues, and one California assembly member even  introduced a bill that would ban live whale shows (the bill will not be reintroduced in 2015, however).

Will SeaWorld’s $300 Million Initiative Work?

In 2014, Atchison told analysts, “We think that we’ve got a good plan in place overall for 2015.” The plan reportedly included cutting $50 million in costs by the end of this year.

SeaWorld also announced plans to double the size of its orca tanks and contribute an additional $10 million toward orca whale research, reported the Los Angeles Times last year. Called the “Blue World Project,” the initiative will invest more than $300 million in new orca tanks that will have more than 10 million gallons of water at the San Diego park.

The new 50-by-350-foot orca tank is set to open in 2018, with more tanks to open in Orlando and San Antonio later. Atchison told the Los Angeles Times, “Through up-close and personal encounters, the new environment will transform how visitors experience killer whales.”

While the announcement of these improvements has done little to negate the negative press, SeaWorld does have some political support, including the San Diego City Council. The Los Angeles Times reports City Council President Todd Gloria said he is “grateful to SeaWorld for the investment in these new facilities.” Still, some are skeptical about SeaWorld’s new initiative.

“The jury is still out on the question of whether Blue World is a wise investment at this point,” Tuna Amobi, an equity analyst with S&P Capital IQ told UT San Diego in January. “They’re facing questions as to what they can do to mitigate the decline in attendance and if it continues to decline, then it’s going to raise more and more questions as to why they continue to spend money on this.”

Photo credit: Irina Silvestrova / Shutterstock.com

This article originally appeared on GOBankingRates.com: SeaWorld’s $300 Million Plan to Bounce Back From the ‘Blackfish’ Backlash

This article by Morgan Quinn first appeared on GoBankingRates.com and was distributed by the Personal Finance Syndication Network.