Disney Tips Your Guide To A Great Disney Vacation
As domestic parks post solid growth, Disney’s international resorts are showing worrying signs of decline—just as the company announces a brand-new theme park venture in Abu Dhabi. Could this ambitious move backfire?
Credit: Disney
Domestic Strength vs. International Struggle
Disney Parks & Experiences delivered a 13% increase in domestic operating income in the second quarter of fiscal 2025, rising from $1.6 billion last year to $1.82 billion this year. That growth was largely driven by stronger performance at Walt Disney World and Disneyland Resort, Disney Cruise Line’s expanding fleet (including the new Disney Treasure), and higher guest spending across the board. The Disney Vacation Club also contributed solid gains.
However, international parks told a different story: operating income dropped by 23%, falling from $292 million in Q2 FY24 to just $225 million in Q2 FY25. Revenue fell 5% across international parks overall. Disney cited lower attendance and higher operational costs at both Shanghai Disney Resort and Hong Kong Disneyland as major contributing factors.
Why the Decline Overseas?
There are a few likely reasons international parks are underperforming:
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Post-COVID tourism slumps in Asia, where travel restrictions lingered longer than in the U.S.
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Local economic challenges in China and Hong Kong, where inflation, lower consumer confidence, and currency issues have impacted spending habits.
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High operational costs, which aren’t being offset by guest spending or attendance.
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Stiff regional competition, including Universal Beijing and other locally tailored attractions that cater more closely to domestic tastes.
Despite ambitious expansions like World of Frozen in Hong Kong and Zootopia at Shanghai, those resorts haven’t yielded the kind of financial payoff Disney likely hoped for—at least not yet.
Then Why Abu Dhabi?
Credit: Disney
Against this shaky international backdrop, Disney’s announcement of a brand-new theme park in Abu Dhabi this week raised eyebrows. The park will be part of the upcoming Disney Experiences Abu Dhabi project in partnership with Miral and the Department of Culture and Tourism, marking Disney’s first Middle East theme park.
Notably, Disney will not own or operate the park—it’s a licensing deal. That structure minimizes risk for Disney but still raises questions about the timing and optics.
Here’s why it’s potentially risky:
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Brand dilution: With Disney not directly running the park, guest experience may vary from traditional Disney standards. This could lead to reputational damage if the quality doesn’t meet expectations.
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Market unpredictability: Abu Dhabi is still a developing theme park destination, with a much smaller tourism base compared to Florida, Paris, or Tokyo.
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Resource distraction: Committing resources—strategic, creative, and legal—to a new project during a time of international downturn might mean focus is being pulled away from struggling parks that need attention.
A Strategic Bet—or a Hasty Diversion?
Bob Iger remains bullish. “We have a lot more to look forward to,” he told investors, highlighting upcoming film releases, the ESPN DTC launch, and “an unprecedented number of expansion projects underway.” But some industry watchers wonder if Disney’s aggressive growth in new regions is masking—or perhaps deflecting from—the challenges it faces abroad.
At best, the Abu Dhabi park could open new revenue streams with minimal risk. At worst, it’s a distraction that could weaken Disney’s brand in a volatile market just when it needs to shore up global stability.
As Disney charges ahead with licensing deals and expansion headlines, its international numbers tell a more complicated story. Abu Dhabi may grab headlines, but the real challenge lies in getting Shanghai and Hong Kong back on solid ground.
