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17
Vol: IV Issue 4,Oct-Dec, 2018, ISSN :(P)-2454-6542; (E)-2455-9342
Journal of Research Innovation and Management Science
AMUSEMENT AND THEME PARK BUSINESS IN INDIA.
Ms. Popsi Pranita Das
MBA Finance, Ravenshaw Business School.
ARTICLE INFO ABSTRACT
Article History
Purpose – The purpose of this paper is to study about the theme park
Received 14th Nov 2018
business in India and its impact on the Indian tourism industry.
Received in revised form 24th Dec 2018
Accepted on 29th Dec 2018
Design /approach - The data is collected from different journals.
KEY WORDS
Emerging market, Theme park, Research limitations/implications – This study is not backed up with
Amusement parks, Revenue the numericaland direct interaction with the consumers or the end users.
generation, Ambience
Corresponding author.
E-mail : popsi.putuli@gmail.com
Introduction: the Asian parks. In terms of revenue North America have
Presently tourism industryplays a significantrole 49% global share as compared with Asia 32%. According
in contributing factor to the economy of any country. Theme to the World Tourism Organization (WTO) predicted,
parks and amusement parks being the part of the tourism theme park is one of the three trends of the development of
industry also play a vital role to any economy.Amusement international tourism right now and in the future. With
parks or the theme parks are there for more than an three the Disneyland settled down in Shanghai,China the theme
decades. The Disneyland by Walt Disney's in the southern park become the most talked topic of whole world and the
California is the first theme park in the word which was academic research focus.
started in July 17, 1955. The theme park development stage is divided into
With the increasing demand of the experiential four generations. The first generation of relying on natural
tourism concept, the theme park/ amusement park concept resources, the second generation paying attention to urban
is picking up.Theme parks are venues that are based on a entertainment, the third generation is given priority to with
particular theme or an idea; and the accompanying simulation, miniature landscape, and the fourth
novelties, rides, shows, attractions, accommodations and generation which is mainly based on three-dimensional,
other facilities in theme park are also based upon the theme. four-dimensional,7D park in Japan, animation, science and
For instance, in the US there are theme parks that are based technology.
on theme of Harry Potter, Star Wars, etc. Objective of the study:
Global theme park market has increased at a India is the growing market in the amusement park
significant CAGR during the years 2012-2016 and and theme park business but very less research is done on
projections are made that the market would rise in the the subject. In the present scenario it is one of the major
next four years i.e. 2017-2021 tremendously.Technavio's contribution factors to the tourism industry in India. This
analysts forecast the global amusement park market to industry is a capital intensive industry as a small project
grow at a CAGR of 10.16% during the period 2017- also requires huge capital so a proper research on
2021.Currently there are 1800 plus amusement parks or Investment and revenue generation ( ROI) can be studied,
theme parks worldwide. Asia has highest number of this sector also requires study on the operational and
amusement parks with 35% followed by North America working capital structure to meet the daily requirements,
33%.But North America experience more attendance than with the changing technology the guests expectations are18
Vol: IV Issue 4,Oct-Dec, 2018, ISSN :(P)-2454-6542; (E)-2455-9342
Journal of Research Innovation and Management Science
also changing , from 3D to virtual reality rides,7D and - Lotte World
guests service.So, a research can help for better study in - Ocean Park
both project finance and operational aspect of theme and
amusement parks. So, it has a huge potential for the future - OCT Parks
of tourism industry as it can generate huge job - Parque Mundo Aventura
opportunities, area development and wealth - Experiencias Xcaret Parque
maximization. Hence, this industry requires the - Samsung C&T Resort Group
researchers notice for better study and investments and
- Six Flags Entertainment
financial models.
- Tivoli Gardens
Area the study covered:
Market driver
This study will try to analyze how the theme park
or the amusement park industry in India will affect the With the growing spending capacity and change
economics and growth of travel and tourism industry in in the customers demand and life style in the market there
India, how to improve the guest services and experience is a noticeable increase in the spending on leisure and
as compared with the international market and players. entertainment. Presently the guests want to spend more
With globalization and improved information, technology on the experiential tourism where the guests can feel and
and transportation facilities the guests expectation are be the part of the activity. Today’s guests don’t just want
increasing day by day and the guests awareness about to see the monuments rather they enjoy having laser or a
the international theme park or amusement park are at light show to visualize the history behind the monuments.
finger tips.To meet these changing demands, this study Market challenger
will help to know target market and existing new products The major challenges for theme park and
developments and it will also try to focus on different amusement park industry is the availability of alternative
aspects like revenue structure, market players, safety, sources of entertainment(Malls, indoor game zones), travel
facilities in the parks etc,In every business the bottom line exposer to the international market players, fast changing
and the wealth maximization plays a very vital role and technology and theming etc.
this study will help to know more about the profit margins
Revenue Structure:
of amusement and theme park industry, Flawless
Operations in the park plays a very vital role. Starting The spending trend in theme parks consists of
from the entrance, parking, ticketing, security, rides, shows, admission fees (ticketing), food, souvenirs, up charged
ambience, merchandising, food, information all plays a attractions & rides and other related purchases (photo)
very important role and the study of the future prospect of made at the parks. The amount of money people spend on
this industry will help the government and the investors merchandise, up charged attractions and food is tends to
to expand this sector and meet the guests’ expectations. relate closely to attendance and to the amount of time
people stay at a park. Major proportion of theme park
Key international players
revenue is generated from ticket sales.Sale of merchandise
- Cedar Fair Entertainment and food & beverages through retail outlets and
- Merlin Entertainments restaurants located inside the park are anticipated to be
- SeaWorld Parks & Entertainment the key sources of ancillary revenue for amusement parks.
For the maxcimum utilization of the infrastructural
- Universal Parks & Resorts
resources and to increase the revenue now a days different
- Walk Disney Parks and Resorts parks have started extending the services of events like
Other prominent international players live shows, corporate conferances, weddings and
-Beto Carrero World celebrations.
- Chimelong Paradise As per IAAPA (International Association of
Amusement Parks and Attractions) the revenue
- Efteling
breakdown for a theme / amusement park:
- Europa-Park19
Vol: IV Issue 4,Oct-Dec, 2018, ISSN :(P)-2454-6542; (E)-2455-9342
Journal of Research Innovation and Management Science
Source: Global Industry Analysis report
As per IAAPA study the ideal revenue structure of The park must have enough opportunities for the
the theme park can be 53 % from admission fees, 4% from guests to spend money inside through better
paid games, 1% from sponsorships, 5% from sales of merchandising, photography; F&B push carts, special
merchandising products, 1% from paid parking, 13% from events, paid games, evening entertainment etc.
other services like clock rooms etc and 28% from F & B ( Parks also plan for the revenue sharing model by
FOOD AND BAVERAGES) : space sharing with different brand retail outlets and
branded food outlets and few of the parks have also explore
the opportunities of corporate sponsorships.
INDIA AND THEME PARK BUSINESS
Amusement Parks in India attract over three crore
visitors annually and contribute nearly 40 percent of the
total leisure industry turnover which are key drivers of
growth among the services sector in India. According to
the report of FICCI & KPMG the Indian theme park industry
grew at 10.25 per cent in 2016 to reach Rs 2930 crore, up
from Rs 2660 crore in 2015. Increase spending in the leisure
industry, investments expects this industry to grow by
INR 69.8 billion by 2021 at CAGR OF 19.1%. This industry
Source: IAAPA EDUCATION CONFERENCE-2010 is slowly becoming one of the major contributors to the
(IAAPA) leisure industry. Amusement park industry in India20
Vol: IV Issue 4,Oct-Dec, 2018, ISSN :(P)-2454-6542; (E)-2455-9342
Journal of Research Innovation and Management Science
includes Water Park, film based theme park, Adventure The major players in the Indian market are: Ramoji
Park, Family entertainment center, Snow Park, museum, film city, Adlabs Imagica, Wonderla, Essel world,Nicco
Eco Park etc. India has 150 theme parks in different states park ,ATAPI, VGP Universal Kingdom .
of India. The domestic amusement park industry is A basic principle of theme park operation is:
estimated to grow to at least Rs 4,000 crore by 2020,
GATE REVENUE= F & B + MERCHANDISING +
according to Indian Association of Amusement Parks and
OTHER UPCHARGE INCOME.
Industries. But still the Indian theme park market is in the
infant stage as compared to the International market. The revenue from the sale of the tickets and
admission accounts to 75 % of the total revenues and 25 %
There is a substantial growth in the amusement
from non-ticketing revenue of the Indian theme park but
parks and Family entertainment center business in India.
globally it is 45% and 55 % respectively. We expect a change
This industry has also contributed to the growth of the
in this due to increase in the guests spending in
amusement park ride manufacturers, infrastructure
merchandising, f & b and other up charged and attractions
developers.Amusement Park industry contributes 40% of
games etc.
the leisure industry turnover. Currently for a population
of 1.15 billion in the country, there are only 120 amusement Indian theme park caters more domestic tourist than
parks and 45 Family Entertainment Centers. This indicates the international tourist.
that the growth potential of Indian amusement and theme
park industry is substantial. Transport corridors like
expressways and the Metro line are bringing an increasing
number of people closer to entertainment hubs.Growth of
India's retail sector had been the main driving force for the
amusement industry in India.The shift in the choices of
the domestic tourist from pilgrimage tourism to leisure
tourism. The foreign developers are also stepping into the
Indian amusement industry through collaborations with
Indian companies for the expansion of the industry
through capital investments and skill sharing.
Component of the theme park SWOT ANALYSIS
The major component of a theme park or amusement A SWOT analysis will help us to know the 4
parks which attract the guests is rides , attractions live dimensions of the theme or amusement park business in
shows and entertainment, apart from that guests also India and its impact to the economy.
needs better facilities inside the park such as parking, food,
drinking water , transportation( internal), merchandising, STRENTHS–
shades. Big parks also have hotels and resorts inside their The main strength of this industry are the support
property to attract the guests to spend more time. from government in terms of the FDIs, infrastructural
developments, single window clearance for the projects
and the support and introduction of the GST and by
continuous improvement in the rate by reducing it to 18%
from 28%, with the increase in the income opportunities
there is a positive trend in the increase in the guest spending
and preference,Constantly innovative in new rides and
attractions
WEAKNESSES –
Few major weakness are the high capital
investments, high operational cost , most of the parks in
India is family owned so the investment flow is very less
but recently two big parks in India ( Wonderla & Imagica)
opted for IPO issue, better and competitive technology with21
Vol: IV Issue 4,Oct-Dec, 2018, ISSN :(P)-2454-6542; (E)-2455-9342
Journal of Research Innovation and Management Science
more theme based, opportunities for the guest spending visitors demand there is increase in the new market and
inside the parks. better promotional strategies like using social media, apps,
OPPURTUNITIES- websites etc, introduction of new and better quality rides,
support from government in terms of FIDs, infrastructure
This Industry in at its infant stage so the
developments , single window clearance ,urbanization,
opportunity of growth is very high as the government
and better development of the theme based attractions.
supports it, More innovative in theming and rides, special
events for pulling crowd, the property infrastructure can Challenges in the Indian Theme park business
be used for weddings and MICE after park hoursand as The challenges in the Indian theme park business
the world has become small due to better transportation are Government Support in terms of subsidies for Land ,
facilities the guests can travel to the international parks so power supply , water supply , finance support and single
the expectation levels have raised in offerings and services. window clearance for the project, institutions for the
THREATS- qualified Human resource , better safety standards and
better quality rides and the designing and concept aspects.
The threats for this industry are Gaming zones in
Big malls, Competitive business environment ,Theme park Weather Condition: attractions that can be offered
industry have peak, low and medium seasons, rapidly despite unfavorable weather conditions and to make
changing customer preferences and qualified HR significant investments into interior attractions. For
personnel in theme park and amusement park instance Efteling, a theme park in the Netherlands, spent
management course (Presently HR qualified in hospitality USD 35.0 million to establish an indoor attraction known
management are being preferred) as Symbolica: Palace of Fantasy and a new concept of night
tourism with lighting, shows, water leaser shows etc.
NEW TRENDS IN INDIAN THEME PARK
which willhelp the guests to spend more time in the park
MARKET
and this in turn can affect the in park sales of F&B and
In recent years Indian theme park market is taking merchandising etc.
small steps towards the development of this industry.
Characters:Amusement parks with themes based
There are several new trends have emerged. This industry
on fictional characters make popularity among visitors.
is growing and to be at per with the international standards
These parks are also places where children can meet and
the new innovations like VR games, theme based
greet costumed characters (Exp: Micky mouse of Disney).
attractions, safety standards in the parks and rides, quality
of the rides, edutainment options for the students, better Technology: In the changing modern and
designing and theming aspects, quality of live shows and technological world the amusement park market is also
entertainment, implementation of the new technology in needs to cope up with the changing technological world
the ticketing system (RFID) and rides, educative staff, better with the implementation of modern technology in rides
guest experience, implementation of new pricing strategies and RFID system which involves huge investments.
(Differential pricing) and marketing strategies , new Investments: This industry involves huge capital
promotional strategies in new platforms like social media, investments in land, rides, conceptualization, technology
Government support – in regards to the reduction of the etc.
GST from 28% to 18% and single window clearance of the Experts: This industry needs lot of experts for
project, real estate players entering the market, re- conceptualizations, theming, designing etc. But India has
investment in the existing park, new source of revenue challenges in HR experts. So, development of educational
through the sponsorship and revenue sharing model, and and vocational institutions in the area of Theme park and
the parks operated by corporates (V-Guard- Wonderla, Amusement park management studies and study modules
Essel Group- Essel world etc.). required.
Growth Divers of the Indian Theme park business Marketing: To cope up with the competitive market
The major growth drivers of the Indian theme park national and internationally we need to develop
business are increase in the spending capacity of the competitive marketing strategies like loyalty program,
consumers , competitions from the international players, Differential pricing strategies, special pricing strategies
learning about better theming and usage of technology for groups like schools and corporates, corporate
from the international players, with the changes in the collaborations (credit card companies, etc.) , innovative22
Vol: IV Issue 4,Oct-Dec, 2018, ISSN :(P)-2454-6542; (E)-2455-9342
Journal of Research Innovation and Management Science
advertisement and PR , optimum utilization of the social Amusement parks in mall concept
media platfroms. The traditional shopping mall that only contains
Additional Revenue Generation: sponsorships and shops seems to be an ending story. Now more than ever,
space sharing model. visitors are seeking multiple experiences apart from
Research and Development: This industry has very shopping.Entertainment offerings at malls have generally
few researches. been limited to dining and maybe a multiscreen movie
theater alongside the main draw of traditional
Special events: Park wide special events for special
retailers.Experiences with entertainment-focused tenants
day’s celebration like Mother’s Day, Valentine’s Day,
more likely to be found in an amusement park than a
Diwali, Independence Day, live shows etc. Now a days
shopping center. So, a new emerging trend is emerging
parks are also generating revenues by organizing
where the amusement park experience are also provided
weddings and MICE during there off seasons and night
in the malls. Go-kart racing, indoor rope climbing and
time when the park off from their regular operations .
laser tag are the activities which are now a part of the
Contribution to the local economy shopping malls.
Increase in number of parks has a benefit to the Conclusions:
locals market. Apart the increase in employment, there is
The most encouraging aspect of a study revel that
development to infrastructure. Theme Park and
70% of the audiences agree that Theme/Amusement parks
Amusement Park industry play a major role in tourism
successfully deliver on the key attributes of entertainment.
boost in the area as well. This has been identified
It significantly adds value to local economy as well as
internationally, wherein theme parks enjoy strong
tourism while giving new avenues of entertainment of
regulatory support, with governments putting up
International standards to Indians right here in India.
dedicated infrastructure for connectivity, equity and tax
subsidies. This in turn helps the industry to develop its References
potential to enhance the consumer experiences for even • KPMG- FICCI report-INDIAN Media &
better output. While in India, the industry is still at a Entertainment Industry Report-2016, 2017
nascent stage, it is reeling under tax pressure with 18% • IAAPA reports- T H E I N T E R N AT I O N A L A S S
tax applicable. O C I AT I O N O FA M U S E M E N T PA R K S A N D
Major markets for Amusement park AT T R A C T I O N S - 2017 ANNUAL REPORT-
Although India is still an emerging marking for THEME PARKS, AMUSEMENT PARKS AND
theme park and amusement parks but major market share WATER PARKS
for theme parks and amusement parks are basically the • The TEA / AECOM Theme Index Museum-Global
tire one and tire two metro cities like Mumbai, Pune, Attendance report-2016,2017
Hyderabad, Bangalore and Delhi.You can also read
