Disney, Universal parks may not see immediate joy as international visitors return Reuters

By Eva Mathews

(Reuters) – The rise in international visitors to the United States may not benefit Disney and the country’s universal theme parks, which arrive early next year, will be geared toward family reunions and holiday trips will need to be planned.

While the number of parks managed by Walt Disney (NYSE 🙂 Co. and Comcast Corp. (NASDAQ 🙂 increased, capacity reductions, cost increases, and international travelers had fewer visits to their U.S. parks in earnings.

“Disney World in Orlando has more international travelers overall (compared to Disneyland) – it’s a very big destination. And so it’s not something people do on a whim, people have to plan for that,” said Neil Macker of Morningstar. senior analysts. .

In recent weeks, the United States has opened its borders to fully embedded international travelers and approved vaccines for children ages 5-11, boosting investor expectations and Disney shares.

Disney executives said they expect a resurgence in international participation by the second half of next year and also noted a rise in costs.

Some see home travelers keeping parks full.

“There is hope that stronger domestic demand will fill the gap with signs of demand from holidaymakers who have been hungry since the holidays,” said Susannah Streeter, an analyst. Hargreaves Lansdown (LON :).

However, the costs of launching theme parks in a pandemic remain high, and international travelers, who make up 10% to 20% of all visitors to U.S. theme parks, often buy more souvenirs and other high-profit items.

Executives who own Universal Theme Parks, one of Disney’s closest competitors, said the pre-pandemic profit level depends on international visits.

“We are encouraged by the ongoing recovery, but returning to the pre-pandemic EBITDA level and then overcoming it is likely to improve international visits,” said Comcast CEO Brian Roberts.