Higher labor costs and other expenses dragged down income at Disneyland despite higher attendance, ticket prices and visitor spending in an otherwise rosy picture for Disney theme parks across the globe, according to the company’s latest earnings report.
Disneyland saw a decrease in operating results due to inflation, lower hotel occupancy and increased labor costs, according to Disney’s second quarter earnings report released on Tuesday, May 7.
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“At Disneyland, despite growing attendance and per-capita spend, results declined year-over-year due to cost inflation, including from higher labor expenses,” Disney Chief Financial Officer Hugh Johnston said on the earnings call.
Disney’s theme park division was an otherwise bright spot with 10% revenue growth in the second quarter.
Theme parks — like all businesses in California and the United States — have been hurt by higher labor costs and inflation.
California’s minimum wage increased to $16 an hour in 2024 with the hourly rate set to rise to $18 in 2025. After a lengthy court fight, Anaheim’s Measure L boosted Disneyland’s minimum wage to nearly $20 an hour.
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Courtesy : https://www.pressenterprise.com/2024/05/07/higher-labor-costs-drag-down-disneyland-profits/