Domestic parks are booming, but international locations are struggling—and a brand-new park is coming anyway.
Big Wins at Home for Disney Parks & Experiences
Disney’s second-quarter earnings for fiscal 2025 are in—and the domestic side of Disney Parks & Experiences is riding high. U.S. parks brought in $1.82 billion in operating income, up 13% from last year. That success is fueled by higher attendance at Walt Disney World and Disneyland, more guests booking Disney Vacation Club stays, and major momentum from Disney Cruise Line, thanks to the Disney Treasure launch earlier this year.
More people are showing up, staying longer, and spending more. Disney called out growth in park admissions, hotel occupancy, and even merchandise sales.
But the International Picture Isn’t So Magical
While domestic parks posted solid gains, Disney’s international resorts told a very different story. Revenue from international parks dropped by 5%, and operating income plummeted by 23%—falling to $225 million, down from $292 million last year.
Disney attributed the decline to rising operational costs and shrinking attendance at both Shanghai Disney Resort and Hong Kong Disneyland. These parks recently saw major expansions—Zootopia and World of Frozen, respectively—but those additions haven’t yet translated to stronger financial performance.
Consumer Products and Cruise Line Hold Strong
Outside of the parks, Disney’s other “Experiences” business units showed promise. Consumer products revenue jumped 14%—thanks in part to licensing deals like the launch of the Marvel Rivals video game. And with a growing fleet, Disney Cruise Line continues to be a bright spot, with increased passenger days and strong advance bookings.
So… Why Launch a Park in Abu Dhabi?
Here’s where things get interesting: even as international parks underperform, Disney announced the development of an all-new park in Abu Dhabi. The Middle Eastern destination will be home to Disney Experiences Abu Dhabi, a licensed theme park created in partnership with Miral and Abu Dhabi’s Department of Culture and Tourism.
The twist? Disney won’t operate or own this park. It’s a licensing deal—meaning Disney lets someone else build and run it, while Disney collects fees and helps with creative input.
Risky Timing for a Bold Move
With international attendance shrinking and costs climbing, it might seem like strange timing for Disney to leap into a new global venture. Here’s why this could be a gamble:
-
Unproven tourism market: Abu Dhabi isn’t a major theme park hub—yet. Will there be enough demand?
-
Operational consistency: With Disney not running the park, maintaining brand standards could become difficult.
-
Distraction from struggling parks: Shouldn’t Disney be focusing on reviving performance in Shanghai and Hong Kong before expanding?
Even though this park carries less financial risk than a fully owned resort, it still raises questions about how Disney balances growth and quality across its global portfolio.
What’s Next?
CEO Bob Iger remains optimistic, calling out Disney’s strong domestic performance and a “record number of expansion projects” in the pipeline. Still, this Q2 report shines a light on a growing gap between Disney’s homegrown success and international growing pains.
Abu Dhabi may represent a new chapter—but the company will need to turn the page on overseas losses if it wants to keep its global magic alive.
