by Donald Wood
Last updated: 8:56 AM ET, Fri November 12, 2021
A new report suggests American theme parks may not see the benefits of reopening international travel until next year.
According to Reuters.com, Disney and Universal theme parks experienced a higher number of domestic arrivals in 2021 than the previous year, but capacity constraints, rising costs and fewer international travelers have negatively impacted profits.
The United States reopened its borders to fully-vaccinated international travelers early this month and health officials recently approved vaccines for children aged 5-11, both of which helped improve the outlook for American theme parks.
During a recent conference call, Disney executives said they believe a recovery in international attendance should be expected by the second half of next year. The influx of international travelers would also increase operating costs as attendance expands.
"Disney World in Orlando has more international travelers in general (compared to Disneyland) - it's a very big destination," Morningstar senior analyst Neil Macker said. "And so it's not something people do on a whim, people need to plan that out."
The reasons international travel will not impact theme park attendance right away include an early focus on family reunions, as well as the overall need to plan holiday vacations ahead of time.
Disney, Universal and other theme park companies revealed that international travelers make up 10-to-20 percent of total visitors, with the visitors often buying more souvenirs and other high-profit items.
"We are encouraged by the continued recovery, but getting back to and then exceeding pre-pandemic levels of EBITDA will likely require an improvement in international visitation," Comcast chief financial officer Brian Roberts said.
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