Disney has warned that its amusement parks in the US will face a slowdown in the months ahead due to a decrease in international visitors. Despite this, the company remains optimistic, stating that it will focus its marketing efforts on US customers to offset the impact and is still expecting its parks business, a key profit driver, to see modest growth.
Decline in International Visitors
For the first time since 2020, the number of foreign visitors to the US dropped last year, with analysts attributing some of the decline to a growing backlash against President Donald Trump’s policies. Disney declined to comment on the specific reasons behind the drop in international visitors but their remarks add to growing concerns about increasing anti-US sentiment among tourists.
The US government has already raised fees at national parks for foreign visitors and is considering a new measure that would require visitors from dozens of countries, including the UK, to submit five years’ worth of social media history. A recent survey from the World Travel & Tourism Council found that one-third of international travelers say they are less likely to visit the US if such social media checks are implemented.
Impact on Canadian Visitors
Preliminary data from the US International Trade Administration (ITA) show that foreign visits to the US fell by 2.5% last year, not including data from Mexico and Canada, which have historically been two of the largest sources of visitors to the US. The decline is expected to be even larger when figures from Canada are included. Visits from Canada, in particular, saw a significant drop, falling more than 20% in the first nine months of the year compared to 2024. This decline follows a boycott of US travel sparked by Trump’s tariff policies targeting Canada.
Disney Parks Performance
Despite the drop in international visitors, Disney’s parks in California and Florida still saw a 1% decline in attendance last year. However, Disney executives have remained optimistic about the upcoming year. They expect bookings at US parks to grow by 5% this year, largely due to a strong domestic market. In the most recent quarter, overall revenue at Disney’s US and international parks rose by 6%, reaching more than $10 billion (£7.3bn).
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Guy Bisson, an analyst at Ampere Analysis, said the numbers indicate that while the decline in international visitation may hurt Disney’s overall revenue growth, the impact won’t be catastrophic. “It’s not going to be as stellar as they would have hoped or it would normally be, but it’s not an all-out disaster either,” he noted.
Shares in Disney fell by 4% on Monday following the announcement of the company’s results. Despite a 5% rise in overall revenue, which reached $26 billion, the company’s profits fell nearly 6%. Rising content and distribution costs put pressure on Disney’s bottom line, which weighed heavily on its overall profitability.
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As Disney looks to navigate these challenges, its ability to adapt to the changing travel landscape and continue attracting domestic visitors will be key to ensuring continued success in its amusement park division.
