Hong Kong’s political crisis is hitting Hong Kong Disneyland hard.
Disney reported strong earnings on Thursday, but flagged mounting losses at Hong Kong Disneyland, where protests have gripped the city for months and walloped its tourism industry.
If the current trends continue, operating income at Hong Kong Disneyland could fall by $275 million in Disney’s current fiscal year, which ends in September 2020.
The local theme park was a drag on international business last quarter, when operating income at Hong Kong Disneyland fell $55 million, offsetting growth at parks in Paris and Shanghai.
Visitors to Hong Kong plummeted 37% in the third quarter, according to the city’s financial secretary. Hotels were on average only two-thirds full, a drop of 28% compared to the same period a year earlier.
With no immediate resolution to the city’s political crisis in the cards, economists say Hong Kong’s first recession in a decade could extend into the new year.