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The waterpark climate heats up and positions for growth in Australia
by Marion Hixon
Aquatic attractions and waterparks are experiencing a growth spurt in Australia, and it’s not just because the country is so surfer friendly— although that certainly doesn’t hurt. The sport of swimming is revered and the art of recreation celebrated in the country. And all of these priorities show through in the waterpark industry’s growth and continued success in the country.
“Swimming is a major sport in Australia,” says Nigel Benton, publisher of Australasian Leisure Management, who likens surfers and aquatic lifesavers in Australia to the iconic cowboy in America—informal mascots, of sorts. “Swimming events, and not just the Olympics, get high TV ratings. Successful swimmers are seen as major sporting stars; even the smallest of towns across the country have swimming pools.”
It’s for these reasons he says the aquatics industry is a natural fit for the country, and why the people are embracing these attractions.
Strength in Uncertain Times
The Australian economy is experiencing a downturn like many other areas of the world, yet a survey conducted by virtual office provider Servcorp (www.servcorp.net) shows the country as one of the least affected in the world, behind China and India. Nevertheless, Australian developers and operators in the attractions industry are taking a closer look at their investments. They’re still spending money, just very carefully.
Waterparks have also proven to be cheaper to build than traditional theme parks. Benton says several waterpark developments are on track for the next few years, including an indoor waterpark in western Sydney. He estimates building a water attraction carries a price tag of AUS$20 million (US$17.2 million), while theme parks can cost upward of AUS$50 million (US$43.1 million). And new “theme parks planned in Australia in recent years have not eventuated,” he says, pointing to aquatic facilities as a more reliable industry investment.
Jeff Coy, president of JLC Hospitality Consulting, based in Arizona, has become increasingly invested in the growth of Australian waterparks, primarily because, he says, they present a prime opportunity to bring the attraction indoors, similar to the successful indoor waterparks in the United States, often built as a package deal with a resort or hotel. Coy points out foreign direct investment into Australia almost doubled in 2007, showing a significant interest on behalf of foreign investors to make their marks on the country. From 2001 through 2006, average inflows were around AUS$16 billion (US$13.75 billion), and in 2007, reached AUS$35 billion (US$30 billion).
Alert and Prepared
Of course, there are always challenges posed in the hope of major development. Several years ago, threat of waterborne illness was a major issue in the country. “It led to something of a mass media scare,” Benton says, adding that technology in water quality maintenance has developed considerably since then.
Another potential hurdle is location. The country’s temperature is mild—Coy compares Hobart to Wisconsin Dells; Sydney to San Diego and Phoenix; and Brisbane and the Gold Coast to Orlando, Miami, and Key West. So while weather isn’t a hindrance, some areas prove more difficult in the competitive market.
“The Sydney metropolitan area is the only area that has been difficult for waterparks in recent years,” Benton says. “Land costs are high and investors have not seen returns on a five-month season. Any operator also must compete with publicly owned aquatic centers, and there are several in Sydney with wave pools, water slides, and other attractions.”
Smart Marketing
For a country the size of the United States mainland, Australia has a small population of about 20 million (compared to the U.S. 304 million). Thus it’s surprising one of the country’s bigger parks, Wet ’n’ Wild Water World in Gold Coast, is one of the world’s most popular waterparks, bar none.
Benton points to wise marketing strategy as one of the country’s waterparks’ biggest strengths. “Aussie operators are very smart in reaching small markets,” he says. “A good example is Wet ’n’ Wild. In the winter, Queenslanders tend not to go there, so the park switches its marketing to Tasmania and New Zealand.”
Paying attention to such details draws a consistent crowd and revenue. While large developments seem possible on the horizon, such a strategy keeps parks like Wet ’n’ Wild not only surviving, but thriving, in the meantime.
Contact Departments Editor Marion Hixon at mhixon@IAAPA.org.
Trends in Australian Waterparks
Family-Aimed Attractions
“Parks seem to want core attractions particularly aimed at family markets,” says Nigel Benton of Australasian Leisure Management magazine. One example: the popular swimming lagoon—an innovation coming out of Queensland.
 These large lagoons mimic beach swimming in feel and aesthetics—entry points are gradual and marked with “soft edge” padding—and the attraction acts as a safe alternative to the ocean during seasons when predatory fish and stingrays are rampant. In fall 2008 there were at least eight lagoons throughout the country, most of them publicly owned; Benton’s publication reports the pools attract a variety of different groups— from youth to senior citizens and disability groups.
Free admission for visitors doesn’t mean lagoons don’t bring in revenue. Profitable initiatives like rides or colocating amenities can please an audience already captivated by free recreation. Kiosks surround lagoon properties, offering everything from food and beverages to retail locations. And slides and attractions like spraygrounds are installed in the lagoon, depending on the depth of water and swimmers’ competency.
Indoor Possibilities
Jeff Coy of JLC Hospitality Consulting believes the next big thing lies within resort walls, as hotels consider adding indoor waterpark attractions. The reverse works as well, as waterparks can build indoor water attractions onto their existing facilities.
 Coy quotes higher hotel occupancy at Australian waterparks compared to other countries as a big draw for development. “Australian and Oceana hotels achieved 71.3 percent occupancy for year-to-date April 2009 compared to all Asia Pacific hotels at 58.3 percent and North America hotels at 52.8 percent,” Coy says. From JLC’s research in indoor hotel hotspots like Wisconsin Dells, Wisconsin, in the United States, he found room occupancy at hotels with indoor waterparks higher than those without. With more visitors and more attractions to offer, these hotels can also add waterpark admission to the lodging fee and draw more overall revenue.
Another evident motivation is the fact that indoor waterparks can stay open through inclement weather and increase their operating days threefold. “They extend their peak season from 100 days to 365 days,” Coy says.
No indoor water attractions exist as of yet in Australia, although Sea World Resort on the Gold Coast provides lodging accommodations in conjunction with its outdoor waterpark.
Less Cash, More Profit
“Key innovations in the industry right now are smart cards and RFID technology for access,” Benton says. The technology, which stands for Radio Frequency Identification, has caught on quickly throughout the country and frees guests from having to pull out cash or credit cards at food and beverage venues, retail locations, and entry points (for more information, see FUNWORLD’S February 2009 issue). RFID has the potential to simplify guests’ activities and raise revenue for a park simultaneously, since guests are more likely to spend money freely when not inhibited by bulky wallets. Benton reports the growth in popularity of parks using bracelets and key rings with RFID chips in them have been led by other cashless trends in the attractions industry, such as boosted Internet ticket sales at sporting and entertainment events and direct debiting becoming widely used at health clubs across Australia. |
Warner Village Theme Parks weighs in…
In 2007, Gold Coast's Wet ’n’ Wild, Warner Village Theme Parks' flagship waterpark, welcomed 1 million visitors in a 12-month period—its highest count to date. The achievement was repeated in 2008, and projections were strong for fiscal year 2009–2010. Bob White, general manager of Wet ’n’ Wild, gave FUNWORLD insight into the groundwork behind the park’s success.
Offer Crowd-Pleasing Attractions
Australians are looking for challenges and thrills in their water slides. “They want the oohs and aahs of slides and the ability to share the experience with a group of family and friends,” White says. In 2008, the park added “Kamikaze,” a boomerang-shaped Sidewinder MK-1 by WaterFun Products, to respond to growing attendance.
Respond to Safety Concerns
“Australia has the highest rate of skin cancer in the world, and consumers are increasingly seeking shade,” White says. To combat the problem, management at the park continually increase shaded areas in the park.
Cultivate Creative Ideas
To hold effective focus groups and gain valuable guest feedback, White relies on the “eyes and ears of our business”—frontline employees. “We have a diverse range of staff members with a huge amount of experience, which makes brainstorming ideas very effective,” he says. “Staff have excellent networking systems with other operators and industry bodies throughout the world.” www.myfun.com.au
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Wave Riding in Australia
Influential waterparks throughout the country:
Jamberoo Action Park; Wollongoog, New South Wales; www.jamberoo.net
WhiteWater World; Coomera, Queensland; www.whitewaterworld.com.au
Sea World Resort & Waterpark; Gold Coast, Queensland; www.seaworld.myfun.com.au
Wet ’n’ Wild Water World; Oxenford, Queensland; www.wetnwild.myfun.com.au
Adventure Park, Wallington-Geelong, Victoria; www.adventurepark.com.au
Adventure World, Perth-Bibra Lake, Western Australia; www.adventureworld.net.au
The Strand Waterpark; Townsville, Queensland; www.townsville.qld.gov.au/recreation/parks/strand
WATERPARKS IN THE WORKS
Adventure Waters: Owner Paul Freebody is developing the Cairns, Queensland, waterpark and estimates attendance at 250,000 visitors per year
Aussie World: Planned for the city of Palmview in Queensland, the outdoor waterpark is being developed by Warner Village Theme Parks
Source: Jeff Coy, JLC Hospitality Consulting, 2009 |
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