Disney World’s parks saw lower attendance due to recent natural disasters. The company attributed the decline to Hurricanes Helene and Milton, which hit Florida in September and October. According to Disney, these storms resulted in a $120 million adverse impact on its operating income. The Experiences division also faced challenges from the launch of the Disney Treasure cruise line.
Walt Disney World was forced to close temporarily due to Hurricane Milton, estimated to have hurt the company’s earnings by $150-$200 million. Despite this, overall attendance at Disney’s locations has been increasing since the pandemic. However, Disney’s domestic parks saw a decline in attendance, partially offset by strong performances from international parks and experiences.
Disney CEO Robert A. Iger expressed confidence in his company’s strength, stating that its Experiences segment demonstrated “enduring appeal.” Analysts, however, are concerned about the impact of natural disasters on Disney’s earnings and attendance. The company projects 6-8 percent operating income growth for its Experiences division this financial year.
As climate experts predict another intense hurricane threatening Florida, Disney’s two domestic parks are at risk. Another extreme wildfire in California could also affect Disneyland. Despite these challenges, Disney remains committed to investing strategically across the globe.
Source: https://www.newsweek.com/disney-parks-fewer-visitors-2024-hurricanes-2027231