Disney warns of hit from flagging foreign visits

Disney has cautioned that its U.S. amusement parks will face challenges in the coming months due to declining international visitors, but the company expects to offset this through domestic marketing and still projects modest growth in its parks business. Disney’s recent financial report highlighted concerns over flagging numbers of international tourists visiting its U.S. theme parks in California and Florida. The company attributed this trend to broader shifts in global travel patterns and potential anti-U.S. sentiment, though it did not specify exact causes. This warning comes as the number of foreign visitors to the United States dropped last year for the first time since 2020, with analysts pointing to political factors under President Donald Trump’s administration. The decline in international visits is partly linked to a backlash against Trump’s policies, including tariffs and proposed immigration measures. For instance, after Trump imposed tariffs on Canada, visits from that country plunged more than 20% in the first nine months of 2025 compared to the same period in 2024. Additionally, the U.S. is considering requiring visitors from countries like the UK to submit five-year social media histories, a move that a World Travel & Tourism Council survey found could deter one-third of international travelers. Preliminary data from the U.S. International Trade Administration shows that foreign visits to the U.S. fell by 2.5% last year, excluding Mexico and Canada. When Canadian figures are included, the drop is expected to be significantly larger, highlighting the impact of regional boycotts and policy tensions. This trend poses a challenge for Disney, as international visitors are a key demographic for its parks, contributing to overall revenue and profitability. Despite the headwinds, Disney remains cautiously optimistic. Executives noted that while attendance at U.S. parks dipped by 1% last year, bookings are on track to grow by 5% this year, driven by targeted marketing to American customers. In the most recent quarter, attendance increased by 1%, and overall revenue from U.S. and international parks rose 6% year-on-year to over $10 billion, indicating resilience in the face of declining international traffic. Financially, Disney reported mixed results for the quarter. Overall revenue increased by 5% to $26 billion, bolstered by successful film releases such as ‘Zootopia 2’ and ‘Avatar: Fire and Ash.’ However, profits fell nearly 6% due to rising content and distribution costs. Following the earnings report, Disney’s shares fell by 4% on Monday, reflecting investor concerns over the international visitation challenges and profit margins. Analysts like Guy Bisson of Ampere Analysis suggest that the impact on Disney may not be severe. Bisson stated, ‘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.’ This perspective underscores that while the decline in foreign visitors is a setback, Disney’s diversified strategy and strong domestic base could help cushion the blow. The broader tourism industry is also feeling the effects, with increased fees at national parks for foreign visitors and ongoing debates over social media checks. These measures, aimed at security and revenue, risk further alienating international travelers. The World Travel & Tourism Council has warned that such policies could exacerbate the decline in U.S. tourism, affecting not just theme parks but the entire economy. Looking ahead, Disney plans to continue adapting its marketing efforts and enhancing guest experiences to attract more domestic visitors. The company’s ability to navigate these challenges will be crucial as it seeks to maintain growth in its parks segment, a vital profit driver. While the short-term outlook is tempered by international headwinds, Disney’s long-term strategy and brand strength position it to weather this period of uncertainty in global travel patterns.