Disney Braces for Impact as International Tourism to U.S. Parks Slows
Walt Disney Co. has issued a cautious outlook for its flagship U.S. theme parks, citing a noticeable softening in international visitation that threatens to dampen performance in the coming quarters. The company, however, plans to counter the trend with intensified marketing aimed at domestic travelers and maintains that its parks division—a cornerstone of its profitability—will still post modest growth.
The warning comes amid broader concerns about a cooling interest in U.S. travel. Last year marked the first decline in foreign arrivals since 2020, a shift some industry watchers have connected to the political climate and specific policies enacted during the Trump administration. While Disney declined to specify the drivers behind the visitor slump, its statement amplifies growing unease within the tourism sector about rising anti-U.S. sentiment abroad.
Compounding the issue are recent regulatory changes. The U.S. has already increased entry fees for foreign visitors at national parks and is weighing a proposal that would require travelers from dozens of countries, including the United Kingdom, to submit five-year social media histories as part of the visa process. According to a recent survey by the World Travel & Tourism Council, one-third of international travelers say they would be less inclined to visit the U.S. if such checks were implemented.
Preliminary data from the U.S. International Trade Administration (ITA) shows a 2.5% drop in overseas arrivals last year, excluding visitors from Mexico and Canada. The picture is expected to worsen significantly once Canadian figures are included: visits from Canada plummeted more than 20% in the first nine months of the year compared to the same period in 2024, a downturn linked to trade tensions and a grassroots boycott movement.
Attendance at Disney's California and Florida parks dipped 1% last year. Despite what executives termed "international visitation headwinds," advance bookings for U.S. parks remain on track for a 5% increase this year. In the most recent quarter, attendance edged up 1%, while combined revenue for Disney's domestic and international parks rose 6% year-over-year to over $10 billion.
"The numbers suggest that even if international travelers stay away, the impact on Disney won't be catastrophic," said Guy Bisson, an analyst at Ampere Analysis. "It's not going to be as stellar as they would have hoped... but it's not an all-out disaster either."
Disney's shares fell 4% on Monday following the earnings release. Overall quarterly revenue grew 5% to $26 billion, buoyed by blockbuster film releases like Zootopia and Avatar sequels. However, profits declined nearly 6%, pressured by rising costs for content production and distribution.
Reaction & Analysis
Michael Torres, Travel Industry Consultant: "This is a canary in the coal mine for U.S. tourism. Disney's scale insulates it somewhat, but smaller destinations and businesses that rely on international spending will feel this much more acutely. The administration needs to reconsider policies that are perceived as unwelcoming."
Sarah Chen, Portfolio Manager at Horizon Funds: "Disney's diversification is its strength. Strong domestic demand and their direct-to-consumer streaming services can offset park softness. The market's reaction seems overblown given the underlying resilience in bookings."
David Miller, Editor at 'The Leisure Report': "It's infuriating. We're watching a self-inflicted wound on a key economic sector. Brand America is being tarnished by short-sighted policies, and iconic companies like Disney are left to pick up the pieces. When will the message sink in that tourism is diplomacy and economics combined?"
Priya Sharma, Economics Professor at Carlton University: "The data from Canada is particularly telling. It shows how quickly geopolitical and trade disputes can translate into tangible economic fallout for leisure and hospitality. This isn't just about politics—it's about real jobs and regional economies."