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Disney Universal parks may not see surge in visitors until next year

A surge in international visitors to the United States may not immediately benefit Disney and Universal theme parks in the country, as the early arrivals will be focused on family reunions and holiday trips.

While domestic footfall increased at Walt Disney Co and Comcast Corp parks, profits were hampered by capacity constraints, rising costs and less international visitors to its US parks.

‘Disney World in Orlando has more international visitors in general when compared to Disneyland as it is a much larger destination. As a result, it is not something that can be done on the spur of the moment; it must be planned ahead of time,’ Neil Macker, a senior analyst at Morningstar, stated.

In recent weeks, the United States has opened its borders to fully-vaccinated international travellers and approved vaccines for children aged between 5 to 11, boosting confidence in the investors for a rise in value for Disney stock.

Disney executives predicted that international visits would only begin to recover in the second half of next year, and they also predicted an increase in costs.

‘There is an expectation that stronger domestic demand will make up (for) the shortfall, with signs of pent-up demand from vacationers who have been deprived of vacations,’ said Hargreaves Lansdown analyst Susannah Streeter.


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