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Theme Park Industry Poised for Worldwide Growth

Alexandria, Va. (USA) - As thousands of professionals from the $23 billion global attractions industry gather at IAAPA Attractions Expo 2007 in Orlando Nov. 12-16, worldwide growth and revenues for theme and amusement parks will be a point of discussion among attendees.

            According to statistics compiled by PricewaterhouseCoopers (PwC) in the report titled Global Entertainment and Media Outlook: 2007-2011 – Theme Parks and Amusement Parks, theme park spending worldwide is expected to grow at a 4.6 percent compound annual rate during the 2007 to 2011 period, from $22.8 billion in 2006 to $28.5 billion in 2011. And according to the most recent TEA/ERA Theme Park Attendance Report, compiled by Economics Research Associates and TEA (formerly Themed Entertainment Association), numbers point to moderate growth and stability, with a worldwide attendance increase of 2.2 percent for 2007-2008.

While the United States remains the largest market, according to the PwC report, Asia will be the fastest-growing region with 5.5 percent compounded annually (reaching $8.1 billion by 2011).

            Growth is also anticipated for Europe and the Middle East, with less aggressive growth projected for Latin America.

North America: Steady As She Goes

The theme park industry is categorized into two types of parks: destination and regional. Destination parks are frequented by guests who typically require overnight accommodations and stay two or more days. Meanwhile, regional parks serve visitors typically from within 200 miles of the park, who stay for a day or a weekend.

Preliminary projections show that another year of flat to moderate revenue growth was sustained in North America. In the United States, regional parks have seen steady revenues, while destination parks and attractions continue to see increased revenues. But a weaker United States dollar is projected to help destination parks in the United States, according to PwC.

The new year also holds strong potential growth with the opening of North America’s first new major regional theme park in more than a decade. Myrtle Beach, S.C., welcomes the arrival of the $400 million Hard Rock Park during spring 2008.

PwC projects theme park spending in the United States will increase by 3.9 percent, advancing from $11.5 billion in 2006 to $14 billion in 2011.

 

Asia Outlook: Massive Growth

Asia is the strongest region for amusement industry growth, with many major attraction projects currently under construction. For instance, South Korea will soon welcome the Paramount/Daewoo park and a new MGM attraction, while Universal Studios will open in Singapore in 2010.

Japan is the region’s largest market with $3.6 billion in revenues, which are expected to grow 4.5 percent to $4.5 billion by 2011.

China, the second-largest market, is an area of particular growth, spurred by a rapidly expanding middle class, according to TEA/ERA. New parks in China will drive revenue beyond $1.9 billion by 2011, says PwC. New parks are under development near Shanghai, Shenzhen, Zhouzhuang, Wuhu and Guangdong.

Singapore, South Korea and Hong Kong each have multiple major destination parks in operation and/or in development.

Middle East: Expansion Continues

The industry anticipates the United Arab Emirates (UAE) will be the world’s next home of destination theme parks. Major attractions are in the works, including projects underway in Dubai and Ras Al Khaimah, UAE.

Scheduled to open during 2008, Legends of Arabia is one of three theme parks planned for the massive Dubailand development in Dubai. And Ice Land Water Park is the first of two major attractions coming to Ras Al Khaimah emirate of UAE. According to PwC, revenue in the Middle East will hit more than $200 million within four years.

Europe: New Investments at Popular Favorites

PwC projects that Europe’s theme park market will grow 5.1 percent for the five-year period 2007 to 2011, increasing to $5.5 billion.

While fewer new parks and attractions are planned across the continent, many popular existing parks will add major investments that will encourage return guests. For instance, Walt Disney Studios Paris is set to open a new Tower of Terror extreme drop ride during 2008.

            The leader in the region is France, followed by Germany, the United Kingdom and The Netherlands. But Eastern Europe is an emerging geographic region, with parks under consideration in Romania, Hungary and Poland.

Latin America: Fewer Changes

Theme park spending in Central and South America is projected to rise in tandem with the rise of disposable income levels. However, spending by guests remains limited, which restricts the ability for the region to invest in new major parks, according to PwC.

            Spending may increase to $313 million in 2011 from $248 million in 2006, with new small-park openings enhancing the region. Mexico and Brazil are the leading nations in the amusement industry for Central and South America, respectively. Colombia and Brazil are the only nation in the region with new park openings on track for the next few years.

IAAPA Attractions Expo 2007 is the largest conference and trade show for the amusement park and attractions industry. With its theme “Expand Your Universe” the show will drawan estimated 25,000 people from more than 85 countries from the amusement and leisure industries to Orlando’s Orange County Convention Center from Monday, Nov. 12, through Friday, Nov. 16. The trade show floor will be open Tuesday, Nov.13 through Friday, Nov.16. IAAPA Attractions Expo 2007 offers a solid week of business and fun. More than 1,000 exhibitors will display their products and services in 500,000 net square feet of exhibit space. The event also includes educational sessions, behind-the-scenes tours, marquee social events and networking. This is the marketplace where amusement and attraction industry leaders, decision makers and visionaries gather to network, view the latest innovations, and plan for the future. www.iaapa.org/expos

IAAPA is the premier trade association for the attractions industry worldwide.Founded almost 90 years ago, IAAPA is the largest international trade association for permanently situated amusement facilities and attractions and is dedicated to the preservation and prosperity of the amusement industry. IAAPA represents more than 4,100 facility, supplier, and individual members from more than 90 countries. Member facilities include amusement/theme parks, waterparks, attractions, family entertainment centers, arcades, zoos, aquariums, museums, science centers, resorts, and casinos.IAAPA is a non-profit organization.Funds generated for the association by its involvement in trade shows and other activities are returned to the association to fund services for its members and the industry. IAAPA maintains offices in Europe and the United States. In addition, the association’s Global Alliance partnership program includes international liaisons representing Latin America; Southeast Asia; Australia and New Zealand; India; and People’s Republic of China. www.iaapa.org

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Editors Note:  More information on the TEA/ERA report (Theme Park Attendance Report for 2006) is available at http://www.themeit.com/attendance_report2006.pdf.  Additional information for the Global Entertainment and Media Outlook: 2007-2011 – Theme Parks and Amusement Parks is available at http://www.pwc.com/extweb/industry.nsf/docid/DAC77C339BE32CEB852572D700674560

 

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