Disney reports that its iconic US theme parks in California and Florida face challenges in the coming months. The company cites a notable drop in international visitors as a key factor. To counter this trend, Disney plans to intensify marketing efforts towards domestic tourists. Despite these headwinds, the parks division—a major profit center for the company—still projects modest growth for the year.
This warning aligns with broader US travel data. Last year, for the first time since 2020, foreign visits to the United States declined. Analysts connect this downturn to a combination of political sentiment and stricter proposed travel policies. For instance, the US government is considering mandatory five-year social media history checks for visitors from dozens of countries. A World Travel & Tourism Council survey suggests one-third of international travelers would be less likely to visit the US if such checks were implemented.
A Closer Look at the Visitor Numbers
Preliminary data reveals a 2.5% fall in overseas visitors last year, excluding figures from Mexico and Canada. The decline is expected to sharpen significantly once Canadian numbers are included. Visits from Canada plummeted over 20% in the first nine months of the year compared to 2024. This drop follows trade tensions and a consumer boycott movement. Historically, Canada represents one of the largest sources of visitors for the US.
For Disney, this macro trend translated to a 1% dip in overall attendance at its US parks last year. However, recent company performance shows resilience. Park bookings remain on track for 5% growth this year. In the latest quarter, attendance rose 1%, and combined revenue for Disney’s US and international parks increased 6% to over $10 billion.
Financial Performance and Analyst Outlook
Guy Bisson of Ampere Analysis suggests the potential impact on Disney may not be severe if international travel softens further. “It’s not going to be as stellar as they would have hoped… but it’s not an all-out disaster either,” Bisson stated. The broader company saw quarterly revenue rise 5% to $26 billion, fueled by successful film releases. However, profits fell nearly 6% due to rising costs for content and distribution. Following the earnings report, Disney’s shares fell 4%.
