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Disney warns of dip in overseas park visitors
Walt Disney Company expects its US theme parks to see fewer international guests in the coming months, citing a broader drop in foreign travel to America. Executives said they would counter the trend by targeting domestic tourists, aiming for modest growth in the division that drives much of the firm's profits.
US tourism slump deepens
Last year marked the first decline in overseas visits to the US since 2020, according to preliminary data from the US International Trade Administration (ITA). The downturn excludes travel from Mexico and Canada, which traditionally supply the largest share of foreign visitors. Once Canadian figures are included, the drop is expected to be far steeper.
Visits from Canada, where a boycott movement gained traction after the Trump administration imposed tariffs, fell more than 20% in the first nine months of 2025 compared with the same period in 2024, ITA figures show.
Policy shifts fuel travel concerns
Analysts link the decline to growing anti-US sentiment among tourists, a trend that has intensified this year. While Disney did not specify causes, the company's remarks add to worries that political tensions are deterring visitors.
The US government has already raised fees for foreign nationals at national parks and is weighing a proposal to require travelers from dozens of countries-including the UK-to submit five years of social media history. A recent survey by the World Travel & Tourism Council found that one-third of international travelers would be less likely to visit the US if such checks were implemented.
Disney's strategy and financial impact
Despite the "international visitation headwinds," Disney reported that bookings at its US parks are still on track to rise 5% this year. Attendance edged up 1% in the latest quarter, while overall revenue from its domestic and international parks climbed 6% year-on-year to over $10 billion (£7.3 billion).
Guy Bisson, an analyst at Ampere Analysis, said the figures suggest Disney can weather the downturn. "It won't match the company's usual performance, but it's far from catastrophic," he noted.
Disney's shares fell 4% on Monday following the earnings report. While quarterly revenue rose 5% to $26 billion-boosted by releases like Zootopia sequels and Avatar films-profits dropped nearly 6% as rising content and distribution costs squeezed margins.
Outlook for the parks division
Last year, attendance at Disney's California and Florida parks slipped 1%. Executives emphasized that the parks remain a core profit driver and expressed confidence in their ability to offset the decline in international visitors through targeted marketing to US customers.
