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While Disney posted record results for its parks and experiences division, the company faced hurdles with attendance at its international theme resorts.
Credit: Disneyland Paris
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While the parks in the United States have reported significant revenue growth, Disney’s international locations are grappling with declining visitor numbers.
The Disney Experiences division, which encompasses all of Disney’s theme parks, reported an impressive revenue of $34.1 billion in 2024, marking a 5% increase from the previous year.
However, international parks displayed a contrasting narrative, with total operating income declining significantly. This downturn can be primarily attributed to lower attendance rates, which have become a pressing concern for the company.
Several key factors have contributed to the challenges Disney faces with international park attendance. One significant issue is the increase in operational costs that have arisen from new offerings and attractions. As Disney invests in upgrades and refurbishments, expenses continue to climb, causing a squeeze on profit margins.
Additionally, the recent closure of prominent attractions has played a role in declining guest numbers.
For instance, closures at theme parks like Tokyo Disneyland have created uncertainty among potential visitors.
Furthermore, changes in guest spending behavior have also impacted overall revenue. With rising costs, some guests are opting for fewer purchases within the parks, leading to a decrease in per-guest spending.
Credit: Tokyo Disney Resort
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Specific Challenges Faced by International Parks
Disney’s international parks are facing unique challenges that differ from their domestic counterparts. These parks include popular destinations in Paris, Tokyo, Shanghai, and Hong Kong. Each location has undergone significant transformations, but not all have yielded the desired effect on attendance figures.
A significant hurdle has been the recent closures at Tokyo Disney Resort. Earlier in 2024, major attractions like Space Mountain and Buzz Lightyear Space Ranger Spin were shut down as part of an extensive renovation initiative aimed at revitalizing the Tomorrowland area. Although these upgrades may ultimately enhance the visitor experience, the immediate impact has been a noticeable drop in attendance, as guests are deterred by the absence of familiar rides and attractions.
The response from guests regarding new offerings has also been mixed. Despite Disney’s efforts to introduce innovative experiences, some guests feel that the changes do not meet expectations, further impacting attendance.
Credit: Hong Kong Disneyland
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In light of the current struggles, Disney is actively working on strategies to recover and boost attendance at its international theme parks. One such strategy is the focused commitment to planned expansions and updates across various park locations.
Disney has announced an ambitious slate of new attractions tied to some of its most beloved franchises. Upcoming projects include developments like a Monsters, Inc.-themed area at Hollywood Studios and a new land inspired by the film Encanto at Disney’s Animal Kingdom. Additionally, Disneyland Paris is set to welcome its first-ever ride-through attraction themed to The Lion King, providing fresh appeal for visitors.
Disney remains steadfast in its long-term investment commitment to enhance its theme parks. By engaging with popular intellectual properties and delivering new experiences, Disney aims to revitalize visitor interest and rejuvenate attendance levels.
