Industry Overview

Institute for Attractions Managers

IAAPA

Operations

and Safety

Marketing LeadershipFinance

RevenueOperations

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

providedDefine 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

Themepark Industry: An Overview

What is the attraction industry?

No, it wasn´t all started with a mouse…

The Theme Park concept was introduced by “the mouse” in 1955 with the opening of Disneyland…

USA-Canada Europe Asia/the Pacific

Rest of the world

1950 Start

1960 Development Start

1970 Expansion Development Start

1980 Maturity Expansion Development Start

1990 Concentration Adaptation Expansion Development

2000 Diversification Repositioning Selective growth

Expansion

Salvador Anton Clavé, 2007

Dynamics of Theme Park development by world region

European Pleasure Garden

Theme Park

Amusement Park

Movie Park

Salvador Anton Clavé, 2007

185.6 millionTotal theme park attendance for top 25 worldwide parks

121.4 millionTotal visits to the top 20 parks in North America

57.3 millionAttendance for the top 20 European parks

65.5 millionTotal visits to the top 10 Asian parks

12.3 millionAttendance to top 10 parks in Mexico and Latin America

20.7 millionTop 20 worldwide waterparks attendance in 2009

12.8 millionTotal visitation to top 15 waterparks in US 2009 TEA/AECOM Report

Theme parks of today

Size of the European Theme park industry308 parks - 146 mio. visits

€4,3 bn. total revenue, 47,000 FTE, €700 mio. in tax contribution and €8,6 bn. in total economic

impact of onsite-spending.

Size of the other European leisure industriesWaterparks: 170 parks - 50 mio. visitors

Zoos & Aquariums: 270 facilities - 140 mio. Visitors

Museums: 19.000 museums - 460 mio visitors

Theme parks of today

What will Theme Parks be like in 2020?

Theme Parks of tomorrow

Trends and tendencies

Mature market

Higher expectations

Consolidation

Building destinations

Hybrids

Branding rules

Changed demographics

The European Consolidation !

Tussaud Group

Merlin Entertainme

nt

Group Walibi

Grevin & Cie Premier Parks / Six

Flags Europe /

Star Parks

Compagnie des Alpes

Parque Reunidos

Disney

2010

Movie Park Germany is sold

Movie Park Germany is acquired

2007

Tussaud Group is sold Tussaud Group is acquired

Parques Reunidos is controlling Parque Warner Madrid. Bonbonland and Tusenfryd is acquired

2006

Gardaland is acquired

Walibi and Bellewaerde is sold

Walibi and Bellewaerde is acquired

Mirabilandia is acquired

2005

The Legolands are acquired

2004

Star Parks is formed Pleasurewood Hills is acquired

Bobbejaanland is acquired

2002

Fort Fun is acquired. Grevin & Cie is sold

Parque Warner Madrid opens

Grevin & Cie is acquired

Walt Disney Studios opens

2001

Heide Park is acquired

Avonturenpark Hellendoorn is acquired

2000

Premier Parks changes name to Six Flags Europe. Movie Park Germany is acquired

1998

Shares in Port Aventura is sold to make money for Thorpe Park acquirement

Merlin Entertainment is founded

Group Walibi is sold Group Walibi is acquired

1995

Shares in Port Aventura is bought

1992

Disneyland Paris (Euro Disney) opens

1990

Alton Towers is acquired

Bellewaerde is acquired

1989

Parc Asterix opens and Grevin & Cie is founded

Compagnie des Alpes is founded

1987

Chessington World of adventures opens

1975

Group Walibi is founded

1969

Parques de Attracciones opens and Parques Reunidos is founded

1931

Chessington Zoo opens

1804

Tussaud Group is founded

Marketing

Our product… a feeling!Differs from most other industies. Typically harder to market emotions and feelings

SegmentsRanging from children families over festival enthusiasts to seniors and businessmen.Marketing is typically local or regional

LoyaltySpecial treatment for Annual card holders – or ambassadors

New mediaNew possibilities to create emotions outside the park

Leadership and Human Ressources

Many professionsRide 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 agesChildren, students and seniors

All vacanciesFull times, part times, seasonals, internships

ChallengesMass seasonal hiringYoung peopleNeed to hire and train employees quicklyHigh turnover

Finance

Attraction finance…… is very similar to all other industries.

Rollercoaster MathOur industry operates with definitions like Annual Attendance, Gross Revenue, Per Capita, Revenue per capita etc.

Amusement ParksOriginally, many family-owned parks, high equity Now more consolidations - Merlin, CDA, etc. Higher debt share = demands for higher dividends

Other attractionsOften funded by public or semi-publicIncreased need to exist on traditional market conditions, which aredifficult due to the mature marketIncreases the competition

Revenue operations

Revenue types for a typical attraction parkFood & Beverage (F&B), retail, games (skill games, arcades, paid attractions), lockers, parking, rental of strollers, wheelchairs, etc.

ChallengesLimited seasonImpulse purchase – and majority by the end of the dayLimited repeat business

53%23%

5%

4%1%

1%

13%

Revenue Breakdown

Admissions

Food & Beverage

Merchandise

Games

Parking

Sponsorship

Other

IAAPA 2009

Operations and safety

What is the most safe recreation activity?Bowling – Amusement Rides – Fishing

Operations and safety

Injury RiskThe attractions industry is safer than most other forms of recreation

Injury risk rates* for a variety of sports and recreation:Football: 343Fixed-site amusement rides: 8Basketball: 876Bowling: 39Fishing: 88

In 2007, over 300 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 daysSource: National Safety Council Research and Statistical Services Group: “Fixed-Site Amusement Ride Injury Survey,” 2005 Update