Uncertainty around tariffs is starting to cause some serious issues in the theme park industry, according to the nation’s theme park lobby arm. While many parks stocked up on goods from other countries before the tariffs took effect, those goods are running low just as the summer season begins, and parks across the country are looking to raise prices for merchandise and food.
The International Association of Amusement Parks and Attractions (IAAPA) told Business Insider:
New tariffs will make securing product — like games, plush, and merchandise made outside the United States — more expensive to import. Ahead of the rate hikes, some operators created additional storage space and took possession of goods earlier in the season than what they have imported in the past to avoid paying the tariffs.
With uncertainty in the economy, many theme parks fear lower attendance this summer as consumers cut back on discretionary spending due to increased prices on everyday items. A larger issue is the decline in international tourists, who usually spend a lot of time at theme parks across the country during summer.
Since President Donald Trump threatened to “make Canada the 51st state,” there has been a dramatic decline in Canadian tourists crossing the border and heading to theme parks. Even Central Florida, which has the opening of Epic Universe to bring in international tourists, has seen a decline in visitors.
The IAAPA said:
Also of concern for several American facilities: a softening in the zest to travel south by Canadians who are accustomed to spending their summers in the United States. The current political climate between the two nations may adversely affect the sentiment to travel in the months ahead.
This week, theme parks are facing a third issue: Trump raised tariffs on imported steel and aluminum by 50 percent. Those tariffs are especially impactful for parks like Disney World and Disneyland, which are currently working on major expansion projects requiring massive amounts of steel.
Combining all these factors, including increased competition between major destination theme parks and local parks, makes for an uncertain future for the industry, especially as guests continually demand new and improved rides and attractions.
With even more uncertainty for the industry and the overall economy, the theme park industry could experience a slow summer.
Have you been forced to cut back on your vacations due to increased prices? Let us know in the comments.
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