Tariffs could spell doom for Disney theme parks | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

When you think about your last visit to a Disney theme park, odds are you think of rollercoasters, princesses and pirates, and of course, that delicious Dole Whip.

A trip to Disneyland or Disney World is a core memory for millions of families, and millions more are probably planning their next trip right now. But the prospect of the tariffs President Trump announced in early April might have a chilling effect on some of those plans.

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A tariff means consumers pay more for every imported item they purchase, whether it’s tomatoes, T-shirts, or a new truck.

The notion of paying more for, well, just about everything is not welcome news for Americans who are already weary from years of inflation.

There is still uncertainty about whether tariffs will eventually be implemented as threatened, and at what levels, but even that speculation is causing ongoing hiccups in financial markets.

In addition to increasing prices on everyday necessities, tariffs increase the cost of everything from airline tickets to food and accommodations. So the last thing many Americans are thinking about at the moment is a vacation.

When tariffs go into effect, it will likely have a negative impact on tourism.

Image source&colon; Getty Images

Tariffs are bad for tourism

Just this month, a University of Michigan consumer poll found that consumer sentiment in April is 11% lower than it was in March. That makes the fourth straight month of declines. Sentiment has now lost more than 30% since December 2024 amid growing worries about the potential for a global trade war that has emerged over the last several months.

The survey also suggests there are many warning signs pointing to a risk of recession: expectations for business, personal finances, incomes, inflation, and labor markets are all moving in a negative direction.

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To make matters worse, a potential trade war with Canada and Mexico, the two biggest markets for travel to the U.S., could have a devastating effect on tourism. More than 20 million Canadians and 17 million Mexicans visited the United States in 2024, according to the International Trade Association.

Canada and Mexico also happen to be among the countries sending the most visitors to Disneyland and Disney World, according to Road Genius, which collects data about vehicle rentals around the world.

International travel overall is expected to be 5% lower than it was in 2024, according to research group Tourism Economics, with visits from Canadians down by as much as 15%.

Disney parks are vulnerable when people feel pessimistic

Amusement park attendance is one measure of the health of the American economy. It makes sense that when people feel confident about the cost of their housing, health care, and groceries, they are more likely to spend on extras like new cars and vacations.

Likewise, when the economy is strong, it is reflected in the revenues earned by Disney Parks, Laurent Yoon, a research analyst at Bernstein Research, told the Los Angeles Times.

Disney’s experiences division — which includes its 12 theme parks around the world (six are in the U.S.) as well as its cruise line and merchandise, is the most profitable sector of the company. Also according to the LAT, the experiences division brought in 60% of the company’s operating income last year.

Disney might still be the happiest place on earth, but when people are not feeling hopeful about their own personal economies, the sentiment trickles down, and it changes people’s priorities.