THE ELECTION IS OVER
WHAT NOW FOR AMERICA'S THEME PARK INDUSTRY?

Yesterday, Americans went to the polls and delivered one of the most consequential midterm election results in recent years. Control of both the United States Senate and House of Representatives has shifted to the Democratic Party, creating a substantially different political landscape for the remaining two years of President Trump's administration.

The question I want to examine is not whether this political shift is good or bad for either political party. Rather, what could it mean for America's amusement and theme park industry, an industry that depends heavily upon consumer confidence, discretionary income, affordable travel, and economic stability?

Will we experience an upturn in attendance and spending? Could the uncertainty of divided government produce the opposite? Or will our industry continue to perform much as it has through previous political transitions?

I, like many of you, have witnessed numerous changes in political leadership, economic recessions, inflationary cycles, and periods of extraordinary prosperity during my years in the industry. One thing I have learned is that political change does not automatically translate into changes in theme park attendance. However, the economic consequences of political decisions certainly can!

Looking back, history has provided some important lessons. Consider the financial crisis of 2008 and the recession that followed. Americans were experiencing declining home values, unemployment, and considerable uncertainty about their financial futures. Sounds familiar.

In the 2008 elections, Democrats strengthened their congressional majorities, and Barack Obama won the presidency. Yet, the economic difficulties confronting the country did not disappear with the political transition.

According to the TEA/AECOM attendance research during that time, North American theme park attendance declined approximately 1.3% in 2009. Interestingly, Disneyland experienced an estimated 8% attendance increase that same year.

Disney also reported that its domestic park attendance remained relatively stable during a difficult fiscal quarter in 2009, supported by substantial discounting. Nevertheless, its parks and resorts operating profit declined 50% for that quarter. Spending was down significantly. There is an important lesson here. Maintaining attendance does not necessarily mean maintaining profitability.

Consider another political transition. In the 2018 midterm elections, Democrats gained 41 seats and control of the House of Representatives, while Republicans retained the Senate.

Did this political shift cause a downturn in the theme park industry? No such conclusion is supported by the attendance figures. In 2019, the top 20 North American theme parks collectively recorded attendance growth of approximately 1.2%, a normal growth percentage.

Now in my opinion, these examples do not establish that either political party produces better results for our industry. They demonstrate that economic conditions, investment, pricing, and consumer behavior often have a much more direct influence than the political composition of Congress.

However, we have seen that the destination parks offer a different economic equation. As we have known for years, Disney, Universal, and the other major destination resorts operate within a somewhat different economic environment than traditional regional amusement parks. Their customers frequently plan vacations months in advance, purchase airline tickets, reserve hotel accommodations, and commit considerable financial resources before arriving.

These destination properties also attract international visitors, making foreign exchange rates, international travel policies, airline capacity, and geopolitical stability important considerations, which all have different impacts on them verses the regional park operations.

So, if the new Congress and administration can reach agreements that strengthen economic confidence, encourage international visitation, and stabilize transportation costs, destination resorts could benefit. Conversely, prolonged budget disagreements, higher travel costs, continued inflation, or international tensions could negatively affect future bookings and guest spending. Only one day in from the election results and having to wait to January 2027 for the real shift, we can only hope. Too early to anticipate either way.

But I do want to point out another important distinction in play. We have experienced that higher-income households generally possess greater financial flexibility to absorb increasing vacation costs. Middle-income families, however, may find themselves making difficult choices between an expensive destination vacation and other household necessities. For destination parks, I think we should be watching not simply just attendance, but hotel occupancy, length of stay, advance reservations, and, of course, per-capita spending as it occurs.

These measurements may reveal changing consumer behavior well before annual attendance totals tell the complete story. A little crystal balling, but they have been barometers in the past.

Regional amusement parks, including Kings Island, Cedar Point, Hersheypark, Silver Dollar City, and numerous independent properties, face a different set of considerations. Those businesses are heavily dependent upon families traveling by automobile, regional employment conditions, gasoline prices, and the discretionary income remaining after household obligations are paid.

It’s been my past observations that families may have every intention of visiting their favorite amusement park, but when gasoline, groceries, insurance, and other necessities consume an increasing percentage of household income, entertainment expenditures become vulnerable.

This does not necessarily mean the family abandons the park visit altogether. They may purchase fewer tickets, reduce visits, bring fewer family members, or spend less on food, merchandise, and premium experiences.

Interestingly, I believe that regional parks could also benefit if this economic uncertainty encourages Americans to vacation closer to home rather than undertake expensive long-distance trips. This is a possibility worth considering. The regional park might become an attractive alternative to a considerably more expensive destination vacation.

However, that advantage will depend heavily upon the industry's ability to demonstrate value. Today, Six Flags made pricing concessions to senior citizens over 65, announcing that, for the remainder of 2026, guests ages 65 and older can receive free unlimited admission to their home park through the remainder of the 2026 operating season, excluding Knott’s Berry Farm. This is the first time I have ever seen free senior admissions at any park!

Based on the election sweep, looking toward 2027, I believe there are six economic factors that deserve particularly close attention.

First, consumer confidence. Families must feel reasonably secure about employment, income, and their financial futures before committing to discretionary expenditures.

Second, inflation and energy costs. Higher gasoline prices affect both the cost of reaching parks and the operating expenses incurred by the parks themselves.

Third, interest rates and capital availability. Our industry requires substantial reinvestment. Higher borrowing costs can delay attractions, expansions, and modernization projects, particularly, as we are seeing, among financially leveraged operators.

Fourth, international tourism and labor policy. Destination resorts depend upon international travel, while many seasonal operators rely upon international employee programs. Changes in visa policies and travel conditions can affect both demand and operating capacity.

Fifth, government stability. With Congress and the White House controlled by different parties, negotiations over federal spending, taxation, tariffs, and other economic policies could become more complicated. Compromise could produce greater certainty, while prolonged disagreements could create additional uncertainty.

Sixth, Democratic retribution. Come January, the sweep in Congress should focus on positive changes forgoing vengeance and retaliation to the Republican Party.

There is one additional fact that should not be overlooked by us. Our industry entered this election period already facing significant economic pressures. Inflation, elevated operating expenses, labor costs, and the need for continuing capital investment were concerns long before Americans cast their ballots yesterday.

A June 2026 EY-Parthenon consumer survey found that more than 30% of respondents were reconsidering leisure and entertainment spending. That is a meaningful warning, regardless of political affiliation.

I do not believe it would be responsible, based upon one election, to predict a seismic increase or decrease in theme park attendance during 2027.

There are plausible scenarios in both directions. Economic stabilization and improved consumer confidence could encourage greater leisure spending. I think a persistent inflation, expensive energy, and political uncertainty could produce a more cautious consumer in general.

For decades, our industry has demonstrated an extraordinary capacity to adapt to economic and political change. We have survived recessions, energy crises, wars, inflation, and unprecedented disruptions to international travel, and yes, even crazy politics that not even Hollywood could conceive.

Yesterday's election changed the political balance of power in Washington. It did not change the fundamental economic realities currently confronting American families.

Congress can change tax laws, spending priorities, and public policy. It cannot legislate consumer confidence or compel a family to purchase a theme park ticket.

That decision will continue to be made around kitchen tables (for those that still eat there) throughout America, where families determine what they can afford, what they value, and how they wish to spend their precious leisure time. Our industry's responsibility is to give those families compelling reasons to choose us. Pricing, product, and a wholesome family experience, based on a fair “price value equation” judged to be in line with the consumers expectations.

Elections may change who governs America. But it is the American consumer who will ultimately determine the economic direction of our country, as we have just experienced.

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