Trump-Era Tariffs Lead to Decline in International Visitors, Threatening Disney Theme Parks' Global Appeal
International tourism to the U.S. is declining, partly due to trade tensions and tariffs from the Trump era, affecting Disney's theme parks. While domestic attendance is stable, fewer foreign visitors, especially from Canada, threaten Disney's profitability. International tourists, who typically spend more and stay longer, are crucial for Disney's experiences division, which generates nearly 60% of its operating income. The downturn is linked to geopolitical tensions and economic policies, posing challenges as Disney plans to invest $60 billion in park expansions over the next decade.
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04/22 13:29
Trump-Era Tariffs Lead to Decline in International Visitors, Threatening Disney Theme Parks' Global Appeal
International tourism to the U.S. is declining, partly due to trade tensions and tariffs from the Trump era, affecting Disney's theme parks. While domestic attendance is stable, fewer foreign visitors, especially from Canada, threaten Disney's profitability. International tourists, who typically spend more and stay longer, are crucial for Disney's experiences division, which generates nearly 60% of its operating income. The downturn is linked to geopolitical tensions and economic policies, posing challenges as Disney plans to invest $60 billion in park expansions over the next decade.
International Tourism Falters Amid Tariff Fallout
According to data from Tourism Economics, international travel to the U.S. is expected to decline by 5% in 2025, with a sharper 15% drop in visitors from Canada. This downturn follows years of escalating trade tensions and tariffs initiated during Donald Trump’s presidency, which have not only strained diplomatic relations but also triggered consumer backlash in key markets. In Canada, for instance, some citizens have boycotted American goods and canceled travel plans in response to inflammatory political rhetoric and economic policies, including Trump’s repeated calls to annex Canada as the 51st state.
The impact of these geopolitical frictions is now being felt in the tourism sector. “International visitors are really important,” said Jessica Reif Ehrlich, a senior media and entertainment analyst at Bank of America. “They tend to spend more and stay longer, so they’re really profitable.” In 2023, international tourists (excluding Canadians) made up about 8% of Orlando’s visitors, staying an average of eight nights and spending over $1,110 per person, according to Visit Orlando.
Disney Parks: A Heavy Reliance on Global Guests
Disney’s U.S. theme parks—Walt Disney World in Florida and Disneyland Resort in California—have long relied on international tourists to bolster attendance and revenue. These guests often purchase multi-day passes, stay at on-site hotels, and spend heavily on merchandise and dining. However, the recent decline in foreign visitors has left a noticeable gap.
While Disney does not publicly release detailed attendance figures, industry analysts and travel data suggest that international foot traffic has not returned to pre-pandemic levels. Themed Entertainment Association’s annual report shows that while domestic attendance has stabilized, international attendance remains sluggish. This is particularly concerning for Disney, as its experiences division, which includes theme parks, cruise lines, and luxury travel, generated nearly 60% of the company’s operating income last year.
Attendance Trends: A Mixed Picture
The attendance picture across Disney’s global parks is uneven. According to reports from theme park-focused outlets like Traveling with the Mouse and Mickey News, some Disney parks have seen modest gains, while others are experiencing notable declines. Tokyo Disney Resort and Disneyland Paris, for example, have both reported attendance woes in recent months. Meanwhile, U.S. parks have seen steady but unspectacular numbers, with revenue growth driven more by price hikes than by increased foot traffic.
Disney has continued to raise ticket prices at its U.S. parks, with recent increases of up to 6% at Disneyland Resort. This strategy, a holdover from the Chapek era, focuses on maximizing per-guest spending rather than boosting overall attendance. While this has helped maintain revenue, it may not be sustainable if international visitor numbers continue to fall.
Tariffs and Travel: A Direct Link
The connection between Trump-era tariffs and the current tourism slowdown is becoming increasingly clear. A recent report from CNBC highlights a slump in air travel to the U.S. that has emerged in the wake of these trade policies. The tariffs, initially aimed at protecting American industries, have had unintended consequences for the travel and hospitality sectors. As trade tensions persist, potential visitors from affected countries may be deterred by both economic uncertainty and a perceived unwelcoming political climate.
This is particularly problematic for Disney, whose parks are not just domestic attractions but global destinations. The company has invested heavily in expanding its U.S. parks, with plans to spend $60 billion over the next decade on new attractions and infrastructure. These investments are predicated on the assumption of continued growth in both domestic and international tourism.
Competitive Pressures Mount
Compounding the issue is the rising competition from Universal Studios, which is set to open its new Epic Universe theme park in Orlando next month. Disney executives have faced repeated questions from investors about how they plan to respond. While bookings remain positive, the company’s ability to maintain its market dominance could be compromised if international visitors continue to stay away.
Moreover, the broader theme park industry has seen a post-pandemic rebound, with parks like Cedar Point reporting a 4% increase in attendance in 2022. Disney and Universal still dominate the top of the attendance charts, but the margin is narrowing as regional parks attract more local visitors.
Revenue Up, But Risks Remain
Despite the challenges, Disney’s parks division has managed to grow revenue, thanks largely to higher ticket prices and premium offerings. However, this growth masks underlying vulnerabilities. As noted by Traveling with the Mouse, the company’s current strategy prioritizes guest spending over sheer volume. While effective in the short term, this approach may falter if fewer international guests are willing—or able—to pay premium prices.
The risk is not just financial but reputational. Disney’s brand is built on its status as a global icon of entertainment and imagination. A sustained decline in international visitors could erode that image and limit the company’s ability to attract new generations of fans from around the world.
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