IAAPA
Institute for Attractions Managers
Introduction to the Attractions
Industry
Operations
and Safety
Revenue
Operations
Marketing
Finance
Leadership
Program Goals
• To develop skills necessary to become a senior member
of a management team
• To demonstrate an understanding of the complexities
involved in business development and expansion in the
industry
• To explore different issues and challenges facing people
in the industry
Program Goals
• To apply critical leadership skills such as
communication, decision-making, consensus-building,
networking and negotiation
• To learn independently and cooperatively within groups
to achieve success
Objectives
Participants will:
Make decisions based on information provided
Define elements of five core content areas:
•
•
•
•
•
Finance,
Marketing,
Revenue Operations,
Leadership, and
Safety
Share insight into best practices in the industry
Construct a personal plan of action
International Association of
Amusement Parks and Attractions
IAAPA is made up of more than 4,000
members in 90 countries and work
through a series of volunteer
committees to provide services in four
areas:
 Conference, exhibitions and meetings
 Education, professional development,
and training
 Communications and media relations
 Government relations and safety
International Association of
Amusement Parks and Attractions
IAAPA was formed more than 80 years ago for
professionals who own, manage and
operate:
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
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



Amusement parks
Theme parks
Waterparks
Family entertainment centers
Zoos and aquariums
Museums
Attractions
Manufacturers and suppliers that serve them
Education and Professional Development
• Expo Conference
Programs
• Executive Education
Programs
• Webinars
• Safety Institutes
• Certification
Some House Keeping Rules
Timeliness
Be on time; stay on time (presenters)
Pay Attention
Turn off cell phones, smart phones, etc
Take Breaks
Refresher break every hour (or so)
Ask Questions
No stupid questions, other may have the same question
Resources
Use presenters as a resource
Who R U?
Attractions Industry: An Overview Pt 1
What is the attractions industry?
Attractions Industry: An Overview Pt 2
•
•
•
•
What?
Why?
How?
Oh No!
Attractions Industry: An Overview Pt 2
• What type of attractions?
• Why do people go to attractions?
• How drive attendance to
attractions?
• Oh No! What are barriers to
attendance?
The Attractions Experience Matrix
High Adrenaline
Passive
Active
Low Adrenaline
The Attractions Industry: Today
The Attractions Industry: Today
• There are more than 400 amusement parks and traditional
attractions in the United States alone.
• In 2011, amusement parks in the United States entertained
300 million visitors who safely enjoyed more that 1.7 billion
“rides.”
• There are approximately 300 amusement parks in Europe.
• The Magic Kingdom at Walt Disney World in Florida, USA,
was the most visited amusement park in the world in 2011.
• The most visited amusement park outside of the United
States was Tokyo Disneyland.
The Themepark Industry: Today
• According to the publication Amusement Business, four
of the world’s top ten most visited amusement parks
are in Asia. One of the top ten parks is in Europe and
the remaining top ten most visited parks are in the
United States.
• Amusement parks and attractions in the United States
generated $12.0 billion in revenues in 2007.
• Family Entertainment Centers (FECs) host an average of
381,000 guests annually, with the larger facilities
hosting up to 622,000 guests annually.
The Attractions Industry: Today
• FECs also experience comparatively high levels of
repeat visitation—more than three visits per season.
• The United States amusement park industry provides
jobs for approximately 670,000 year-round and
seasonal employees.
• According to an IAAPA survey, 28 percent of Americans
surveyed visited an amusement park last year, with 50
percent of Americans indicating that they plan to visit
an amusement park within the next 12 months
Industry Resources
TEA attendance Survey
http://www.teaconnect.org/pdf/TEAAECOM2013.pdf
Benchmark Studies:
http://www.iaapa.org/resources/by-type/research-papers
European Economic Impact Study:
http://www.iaapa.org/europe/en/
IAAPA Foundation Economic Impact Study
The Attractions Industry Today: Some Questions
• How many attractions are there in the USA?
• How big is the theme-park business globally?
• How big is the theme-park business in the USA?
• What is the biggest global attractions group?
• How much revenue does the attractions industry
generate?
• How many people are employed in the attractions
industry USA?
• What is the economic impact of the attractions
industry?
Global Themepark Revenues (2007)
Region
2007 Rev
US $m
USA
$11,990 49.85%
$14,538
47.35%
Europe
$4,946
20.56%
$6,828
23.24%
Asia Pacific
$6,367
26.47%
$8,419
27.42%
Latin America
$261
1.09%
$328
1.07%
Canada
$487
2.02%
$588
1.92%
$30,701
100.00%
Total
%
$24,051 100.00%
*PWC Global Entertainment and Media Outlook 2008 - 2012
2012 Rev
Projected
%
The Theme Park Industry by Attendance (2012)
205.9 million
Total theme park attendance for top 25 worldwide parks
131.6 million
Total visits to the top 20 parks in North America
58.0 million
Attendance for the top 20 European parks
109.0 million
Total visits to the top 15 Asian parks
13.2 million
Attendance to top 10 parks in Mexico and Latin America
25.1 million
Top 20 worldwide waterparks attendance
15.4 million
Total visitation to top 20 waterparks in US
2012 TEA/AECOM Report
Global Themepark Attendance (2012)
Rank
PARK , location
% change
2012
2011
1
MAGIC KINGDOM at Walt Disney World, Lake Buena Vista,
Florida
2.30%
17,536,000
17,142,000
2
DISNEYLAND Anaheim, California
-1.10%
15,963,000
16,140,000
3
TOKYO DISNEYLAND Tokyo, Japan
8.50%
14,847,000
13,683,000
4
TOKYO DISNEY SEA Tokyo, Japan
8.50%
12,656,000
11,664,000
5
DISNEYLAND PARK AT DISNEYLAND PARIS Marne-La-Vallée,
France
1.90%
11,200,000
10,990,000
6
EPCOT at Walt Disney World, Lake Buena Vista, Florida
2.20%
11,063,000
10,825,000
7
DISNEY'S ANIMAL KINGDOM at Walt Disney World, Lake
Buena Vista, Florida
2.20%
9,998,000
9,783,000
8
DISNEY'S HOLLYWOOD STUDIOS at Walt Disney World, Lake
Buena Vista, Florida
2.20%
9,912,000
9,699,00
9
UNIVERSAL STUDIOS JAPAN Osaka, Japan
14.10%
9,700,000
8,500,000
10
ISLANDS OF ADVENTURE at Universal Orlando, Florida
4.00%
7,981,000
7,674,000
Source AECOM / TEA 2012 Theme Index
Top Ten Global Themepark Groups Worlwide (2012)
PARK , location
1
WALT DISNEY ATTRACTIONS 4.7% 126,479,000 121,821,000
2
MERLIN ENTERTAINMENTS GROUP 16.4% 54,000,000 46,400,000
3
4
UNIVERSAL STUDIOS RECRE ATION GROUP 7.9% 34,515,000
31,990,000
PARQUES REUNIDOS 3.5% 27,130,000 26,220,000
5
SIX FLAGS INC. 6.0% 25,750,000 24,300,000
6
SEAWORLD PARKS & ENTERTAINMENT 3.0% 24,310,000 23,600,000
7
8
CEDAR FAIR ENTERTAINMENT COMPANY 0.9% 23,600,000
23,400,000
OCT PARKS CHINA 7.5% 23,359,000 21,731,000
9
HAICHANG GROUP 24.5% 9,400,000 7,550,000
10 COMPAGNIE DES ALPES 1.0% 9,300,000 9,210,000
Source AECOM / TEA 2012 Theme Index
% change
2012
2011
4.70%
126,479,
000
121,821,
000
16.40%
54,000,0
00
46,400,0
00
7.90%
34,515,0
00
31,990,0
00
27,130,0
00
25,750,0
00
26,220,0
00
24,300,0
00
3.00%
24,310,0
00
23,600,0
00
0.90%
23,600,0
00
23,400,0
00
23,359,0
00
9,400,00
0
9,300,00
0
21,731,0
00
7,550,00
0
9,210,00
0
3.50%
6.00%
7.50%
24.50%
1.00%
European Themeparks
Top Ten Attendance (2012)
#
Park
% change
2012
2011
1
DISNEYLAND PARK AT DISNEYLAND PARIS
1.9
11,200,000.00
10,990,000.00
2
WALT DISNEY STUDIOS PARK AT DISNEYLAND PARIS
1.9
4,800,000.00
4,710,000.00
3
EUROPA PARK, Rust, Germany
2.20%
4,600,000.00
4,500,000.00
4
DE EFTELING, Netherlands
1.80%
4,200,000.00
4,125,000.00
5
TIVOLI GARDENS, Denmark
1.80%
4,033,000.00
3,963,000.00
6
PORT AVENTURA, Spain
0.50%
3,540,000.00
3,522,000.00
7
LISEBERG, Sweden
-3.40%
2,800,000.00
2,900,000.00
8
GARDALAND, Italy
-10.00%
2,700,000.00
3,000,000.00
9
ALTON TOWERS, U.K.
-9.40%
2,400,000.00
2,650,000.00
10
LEGOLAND WINDSOR, U.K.
5.30%
2,000,000.00
1,900,000.00
Top 15 amusement parks/theme parks
in Asia-Pacific (2012)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Tokyo Disneyland, Japan
Tokyo Disney Sea, Japan
Universal Studios Japan, Osaka, Japan
Ocean Park, Hong Kong
Everland, Kyonggi-Do, South Korea
Hong Kong Disneyland
Lotte World, Seoul, South Korea
Nagashima Spa Land, Kuwana, Japan
OCT EAST, Shenzhen, China
Hakkeijima Sea Paradise Yokohama, Japan
Songcheng Park. Hanghzou, China
Universal Studios Singapore
Changzhou Dinosaur Park China
HAPPY VALLEY, Shenzhen, China
Window of the World, Shenzhen, China
14,847,000
12,656,000
9,700,000
7,436,000
6,853,000
6,700,000
6,383,000
5,850,000
4,196,000
4,050,000
3,800,000
3,480,000
3,400,000
3,212,000
3,170,000
Sources: Economics Research Associates, Themed Entertainment Association (2012)
Finance
Top 10 amusement parks/theme parks
Latin America Attendance by Park (2012)
Top 10 amusement parks/theme parks in
Mexico-Latin America
Attendance
Change 2011
1. SIX FLAGS MEXICO, Mexico City, Mexico
2,310,000
5.00%
2. HOPI HARI, São Paulo, Brazil
1,628,000
-12.20%
3. LA FERIA DE CHAPULTEPEC, Mexico City, Mexico
1,537,000
2.00%
4. BETO CARRERO WORLD, Santa Catarina, Brazil
1,500,000
42.90%
5. PLAZA DE SESAMO, Monterrey, Mexico
1,197,000
33.00%
6. PARQUE DE LA COSTA, Tigre, Argentina
1,091,000
1.00%
7. FANTASIALANDIA, Santiago, Chile
1,070,000
-9.0%
8. PARQUE MUNDO AVENTURA, Bogotá, Colombia
1,065,000
-11.00%
9. EL SALITRE MAGICO, Bogotá, Colombia
958,000
-13.00%
10. Beach Park, Fortaleza, Brazil
843,000
7.00%
*Source AECOM / TEA 2012 Theme Index
Economic Impact of European Themeparks
Summary of Economic Impacts
• Total economic impact €8.6bn
• Total visitor attendance 145.5m
• Total revenues €4.3bn
• Total wages paid €1.3bn
• Expenditure on capex within Europe €371.9m
• Total direct employment (FTEs) 47,590
• Total tax contribution €713.6
Source: IAAPA Economic Impact Study 2009
Economic Overview of US Attractions
Summary of Economic Impacts
• Total # attractions
30,000
• Total revenues
$34 bn
• Total direct employment (FTEs)
1,275,000
• Total employment (FTEs)
2,313,000
• Total wages paid
$11.1 bn
• Expenditure on capex
$5 bn
• Total tax contribution (State & Federal)
$41.1bn
• Total economic impact
$219 bn
Economic Overview of US Amusement Parks
Summary of Economic Impacts
• Total economic impact
$95 bn
• Total visitor attendance
300 m
• Total revenues
$12.9bn
• Total wages paid
$4.9bn
• Expenditure on capex
$2.5 bn
• Total direct employment (FTEs)
675,000
• Total indirect employment (FTEs)
392,000
• Total tax contribution
€17.9 bn
• Total # parks
382
Source: IAAPA Economic Impact Study 2012
Employment in Attractions v’s Other Industries
Industry
Attractions industry*
Computer and electronics manuf.
Machinery manufacturing
Telecommunications
Chemical manufacturing
Oil and gas extraction
Motor vehicles and parts manuf.
* Direct job impact attributable to the US attractions industry
Source: IAAPA Economic Impact Study 2012
Jobs
1,275,051
1,125,400
1,101,200
1,024,100
803,700
783,800
731,700
Economic Impact by Category (Sales)
Industry
Amusement/Theme Parks
Museums
Family Entertainment Centers
Zoos, Aquariums, Botanical Gardens
Water Parks
Historical Sites
Nature Parks
Source: IAAPA Economic Impact Study 2012
Sales $bn
$13.0
$8.2
$7.6
$2.5
$1.2
$0.8
$0.6
Economic Impact by Category (Employment)
Industry
Direct Employment
Amusement/Theme Parks
695,241
Museums
257,966
Family Entertainment Centers
163,291
Zoos, Aquariums, Botanical Gardens 68,527
Water Parks
57,207
Historical Sites
20,630
Nature Parks
12,190
Total
1,275,052
* Direct job impact attributable to the US attractions industry
Source: IAAPA Economic Impact Study 2012
Attraction Type
Water Parks
Amusement/Theme Parks
Amusement Parks & Water Parks
#’s in USA
143
382
525
Amusement Arcades
Bowling Centers
Roller/Ice Skating Rinks
Miniature Golf Courses
Coin-Operated Amusement Devices
Concession Operators
7,383
4,293
1,282
1,125
1,707
573 7,
Family Entertainment Centers
Museums
Historical Sites
Zoos, Aquariums,& Botanical Gardens
Nature Parks
Total
16,363
4,851
3,712
2,809
1,562
Source: IAAPA Economic Impact Study 2012
29,822
What will Theme Parks be like in 2020?
Theme Parks of Tomorrow
Trends and Tendencies
Mature market
Higher expectations (Technology)
Consolidation
Building destinations
Hybrids
Branding rules
Changed demographics
Trends and Tendencies
Mature market
Higher expectations (Technology)
Consolidation
Building destinations
Hybrids
Branding rules
Changed demographics
Consolidation !
Building destinations
Mature market
Higher expectations (Technology)
Consolidation
Building destinations
Hybrids
Brand Sense
Changed demographics
Hybrid Destinations
Mature market
Higher expectations (Technology)
Consolidation
Building destinations
Hybrids
Brand Sense
Changed demographics
Brand Sense
Mature market
Higher expectations (Technology)
Consolidation
Building destinations
Hybrids
Brand Sense
Changed demographics
Changing Demographics
Mature market
Higher expectations (Technology)
Consolidation
Building destinations
Hybrids
Brand Sense
Changed demographics
Fun World Park
Park Characteristics:
•
•
•
•
•
•
•
Small Regional Park in middle of Europe
100 Hectares in size
Annual Attendance 753,000
Operating Days 126
Annual Revenues (2011) US$14 million
Operating Profit US$ 3.8 million
Ticket Price US$18.00
Fun World Park
Park Characteristics cont’d:
•
•
•
•
•
•
# Full time Employees
# Seasonal Employee (2011 peak)
# Rides
# Food an Beverage Outlets
# Retail Outlets
# Games
47
373
25
7 plus 12 carts
5
22
Fun World Park
Group Activity:
• Pick one area of the park (marketing,
revenue operations, etc).
• Identify at least one thing that you
might change to improve operations.
• Give reason for your answers.
Reflect and Share
IAAPA
Institute for Attractions Managers
Introduction to the Attractions
Industry
Operations
and Safety
Revenue
Operations
Marketing
Finance
Leadership
The Attractions Industry:
What Makes Us Different?
Marketing
Our product… a feeling!
Differs from most other industies.
Typically harder to market emotions and feelings
Segments
Ranging from children families over festival enthusiasts to seniors and businessmen.
Marketing is typically local or regional
Loyalty
Special treatment for Annual card holders – or ambassadors
New media
New possibilities to create emotions outside the park
Leadership and Human Ressources
Many professions
Ride operators, security staff, architects, engineers, cooks, waiters, actors, singers, dancers, mucisians, cleaning staff, art
directors, webdesigners, communication staff, nurses, zoo keepers, divers, veterinarians, lawyers, tailors, carpenters,
painters, scenographers, lifeguards, electricians, blacksmiths, retail staff, firemen etc.
All ages
Children, students and seniors
All vacancies
Full times, part times, seasonals, internships
Challenges
Mass seasonal hiring
Young people
Need to hire and train employees quickly
High turnover
Finance
Attraction finance…
… is very similar to all other industries.
Rollercoaster Math
Our industry operates with definitions like Annual Attendance, Gross Revenue, Per Capita, Revenue per capita etc.
Amusement Parks
Originally, many family-owned parks, high equity
Now more consolidations - Merlin, CDA, etc. Higher debt share = demands for higher dividends
Other attractions
Often funded by public or semi-public
Increased need to exist on traditional market conditions, which are
difficult due to the mature market
Increases the competition
Revenue Operations
Revenue types for a typical attraction park
Food & Beverage (F&B), retail, games (skill games, arcades, paid attractions), lockers, parking, rental of strollers, wheelchairs, etc.
Challenges
Limited season
Impulse purchase – and majority by the end of the day
Limited repeat business
Revenue Breakdown
4%
1% 1%
13%
Admissions
5%
Food & Beverage
Merchandise
Games
23%
53%
Parking
Sponsorship
Other
IAAPA 2009
Operations and Safety
What is the most safe recreation activity?
Bowling – Amusement Rides – Fishing
Operations and Safety
Injury Risk
The attractions industry is safer than most other forms of
recreation
Injury risk rates* for a variety of sports and recreation:
Football:
Fixed-site amusement rides:
Basketball:
Bowling:
Fishing:
343
8
876
39
88
In 2010, over 290 million guests visited US amusement facilities;
of the total 1,713 ride-related injuries, only 132 required
overnight hospital treatment
More than just ride safety…
Food, employees, crowd safety, fire, risk of terror, animal hold
etc.
* Injuries per million activity participant days
Source: National Safety Council Research and Statistical Services
Group: “Fixed-Site Amusement Ride Injury Survey,” 2011 Update
Operations and Safety
•Approximately 290 million guests visit the
400 U.S. amusement parks annually and take
1.7 billion safe rides.
•The chance of being seriously injured on a
ride at a fixed-site park in the U.S. is 1 in 9
million.
•59 of the 1,207 ride-related injuries, or less
than 5 percent, required some form of
overnight treatment at a hospital.
Source: National Safety Council Research and Statistical Services
Group: “Fixed-Site Amusement Ride Injury Survey,” 2011 Update