One of Disney’s parks seems to be struggling when it comes to in-park attendance, creating a near ghost-town persona.
At the Disney parks, most guests are used to seeing massive crowds flood the parks. At Walt Disney World Resort for example, it is not shocking to hear of 100,000 guests in one single park at one time, which is a crazy number to think of. Even on days where there are lower crowds, wait times for popular rides are still lengthy.
Recently, we have seen a rapid decline in the number of guests at Walt Disney World, which many have attributed to rising vacation costs during a time of high inflation.
Regarding overall financial performance, Disney reported a one percent increase in revenues compared to both last year and the previous six months. In May 2024, revenues rose to $22.1 billion.
Disney Experiences (also known as parks) has been a significant revenue driver for the company. Last quarter, Disney achieved all-time records in parks revenue, operating income, and operating margin.
Revenue from Experiences saw a 10 percent increase compared to April 1st, 2023, with revenue now at $8,393 million, up from last year’s $7,646 million.
Later in the call, CFO Hugh Johnston indicated that revenue for the third fiscal quarter is “expected to come in roughly comparable to the prior year.” He attributed this anticipated dip to “non-comparable” or “timing-related” factors, such as Disney Cruise Line’s new island destination, Lookout Cay, and the normalization following post-COVID travel surges.
However, Iger expressed uncertainty about park attendance levels by 2025.
During the Q&A portion of the earnings call, Wells Fargo Securities analyst Steven Cahall asked Iger about the company’s expectations for park attendance in fiscal year 2025.
Iger responded, “First, in terms of attendance, look, what we’re basically communicating is relative to the post-COVID highs, things are tending to normalize.”
He emphasized the parks’ growth this quarter, stating, “The parks business did 10% growth in the quarter. And obviously, that’s an extremely high revenue number.
That said, we still see in — the bookings that we look ahead toward indicate healthy growth in the business. So we still certainly feel good about the opportunities for continued strong growth…We’ve got the best in the business in terms of product. People still have a strong desire to basically go on vacation and come to see us.”
According to the Orange County Register, five of the top 20 parks in North America have returned to or surpassed their 2019 attendance levels, as reported by the Themed Entertainment Association and AECOM.
Four of these five parks are in Southern California, with Universal Studios Hollywood leading the way, having set an all-time attendance record thanks to the opening of Super Nintendo World last year. Disney California Adventure, SeaWorld San Diego, and Knott’s Berry Farm have also returned to their pre-pandemic numbers.
Conversely, four of the five parks that have seen the most significant decline in visitors since 2019 are in Central Florida, with Disney’s Animal Kingdom experiencing the biggest drop, losing more than five million visitors over the past four years—approximately 37% of its 2019 attendance.
Disneyland is also among the bottom five in this metric, according to the TEA/AECOM report, indicating that this is not strictly a Florida versus California issue.
Hong Kong Disneyland is also suffering post-pandemic.
Having opened in September 2005, this theme park is one of the most visited destinations in Hong Kong. Before the coronavirus pandemic, the theme park received about six million visits annually. After a significant drop after the start of the pandemic, the annual attendance number rose again to 3.4 million in 2022.
Instagrammers Paloma and Joe recently went to Hong Kong Disneyland, where they showed off “the least visited Disney park”. You can watch their full video here, but below are some screenshots from the video where you can see no one else in the shot, including an empty security entrance.
While it is great to go to a Disney park and not have that park flooded with people, it is concerning to see a Disney park this empty.
That being said, Hong Kong Disneyland is financially on the upswing.
Hong Kong Disneyland has experienced a significant rebound in revenue and attendance following the easing of COVID-19 restrictions. According to a financial report, the park’s revenue increased by 156% and attendance grew by 87% in the year ending September 2023.
The park’s profitability has also improved dramatically, with EBITDA (earnings before interest, taxation, and depreciation) tripling during the same period. These positive results are attributed to the successful implementation of various strategies, including the introduction of new attractions and experiences.
The reopening of borders and the relaxation of travel restrictions played a crucial role in the park’s recovery. Mainland China visitors exceeded pre-pandemic levels, and attendance from Southeast Asia markets also experienced growth.
The park’s financial performance highlights the resilience of the tourism industry and the ability of theme parks to bounce back from significant challenges. As Hong Kong continues to recover from the pandemic, Disneyland is poised to play a key role in attracting visitors and boosting the local economy.
Would you like to visit Hong Kong Disneyland?