Free Essay: Amusement/Theme Park Operators: Making Money by Spreading Happiness The global leisure and entertainment industry doesn’t complete with Amusement...
Amusement/Theme Park Operators: Making Money by Spreading HappinessThe global leisure and entertainment industry doesn’t complete with Amusement Parks industry which broadly categorized into Amusement parks, Theme parks and Water parks with ~43 billion-dollar market currently (Source: International Association of Amusement Parks and Attractions (IAAPA)- Global Amusement Park Outlook 2015-2020, Wilkofsky Gruen Associates). In addition to mechanical rides, water rides and theme attractions, Amusement/Theme park companies also offers games, shows, refreshment stores and other attractions to visitors and ride enthusiasts who purchase tickets to experience the same. Some theme parks also have integral hotels, accommodation, restaurants, and other
…show more content… High entry level barrier: Amusement/Theme Park industry is dominated by few players globally due to high entry level barriers as developing a new Amusement & Theme park or adding new attractions and rides into the current park require major capital investment.
Highly competitive: Amusement/Theme parks face competition within themselves as attendance purely depends on visitor’s interest, intellectual property rights of major brands, special rides or park areas related to current popular theme or pivoting beloved films and characters. Moreover, other mode of leisure also competing with this industry.
Amusement/Theme Park industry globally has shown healthy growth over past few years. Theme park attendance over the past five years rose at a 3.9 percent compound annual rate (Source: IAAPA- Global Amusement Park Outlook 2015-2020). As per Themed Entertainment Association (TEA) 2016 report, attendance at top 10 Amusement/Theme Park Groups grew from 271.6 million visitors in 2006 to 438.3 million visitors in 2016, at a CAGR of 5.46%. Source: IAAPA - Global Theme and Amusement Park Outlook 2015–2019, Wilkofsky Gruen Associates