It is certainly interesting, and as someone who has always loved the whole mid-century tiki culture and Polynesian pop it has given me some pause for thought in recent years!
The definition you cite is quite interesting as you could also substitute "foreign" for "exotic" and it would be far less evocative, perhaps more accurate, and would probably make people more uncomfortable! This is where I think the way they are using it on the new sign to refer to the fantasy ride is probably fine, whereas describing, for example, something like an arepa that people from Colombia and Venezuela may eat everyday as "exotic" is more of an issue.