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Economics 2009THEMEINDEX P2 Economics 2009THEMEINDEX p2 IN A CHALLENGING YEAR, RESILIENCE AND REPOSITIONING JUDITH RUBIN TEA PUBLICATIONS EDITOR 2009 saw a second consecutive year of global economic turmoil adversely impacting attendance in the themed attraction industry. Nevertheless, despite the challenges presented by the reduced consumer spending and budgets, attraction operators managed In 2009, most of the top theme parks to weather the storm at a level equal or and leisure destinations saw either ahead of many other industries. flat attendance or a decline. This was due in large part to reduced spending “The international theme park and and travel by consumers reacting to attractions industry is coming off a the recession, along with the effects CONTACTS challenging year due to the global of the H1N1 flu virus. “Most parks felt economic recession,” said Themed the impact of the deepest recession For information about TEA: Entertainment Association (TEA) since the Great Depression,” said Ray Judith Rubin, [email protected], +1 314 853 5210 president Steve Thorburn of Thorburn Braun, Senior Vice President, AECOM Gene Jeffers, [email protected], +1 818 843 8497 Associates, in spring 2010. “The figures and head of its Entertainment and TEAconnect.org within the 2009 TEA/AECOM Attraction Recreation Economics operation. Attendance Report reflect that. But The strategies parks employed to For information about AECOM Economics and to discuss the details of the Report: they also reflect the resilience and sustain numbers and make the best John Robinett, Senior Vice President (USA), [email protected] +1 310 477 9585 creativity of the industry and show of a troubled situation underscore the Christian Aaen, Regional Director Asia (Hong Kong), [email protected] +852 2236 3075 us the way to future growth. Under basic fundamentals of good business David Camp, Director (Europe/Africa/Middle East), [email protected] +44 20 3009 2255 the circumstances, in 2009 the major in the visitor attractions industry: Lesley Morisetti, Director (Europe/Africa/Middle East), [email protected] +44 20 3009 2231 parks did remarkably well. TEA and reinvestment in the guest experience, Edward Shaw, Senior Associate (USA), [email protected] +1 310 477 9585 AECOM join forces each year to create creative targeted marketing and aecom.com this report for the benefit of the building the relationship with the aecom.com/economics industry.” customer. 2009THEMEINDEX p3 2009THEMEINDEX p4 REPOSITIONING FOR THE REGIONAL AROUND THE WORLD, BETTER TIMES AHEAD Destination parks rely on a combination of tourists Taken together, the numbers this year reflect an and locals, but in 2009 had fewer of the former industry that is stable at its core and well equipped coming through the turnstiles: total visitation to to survive, recover and continue its expansion Orlando in 2009, for instance, was down 9 percent. into new markets as the world economy recovers. 185.6 million Total theme park attendance for top 25 worldwide parks, a decline of 0.2 percent from 2008. Destination parks endeavoured to maintain their Surveying the globe, North America remains the attendance totals at healthy levels via strategies epicenter of the amusement business with 12 of that put more emphasis on building relationships the top-25 attended parks in the world. Shifting with customers and less on revenue, offsetting the east, although affected by the global downturn, lower levels of tourism by encouraging regional Asia continues to be the foremost emerging market attendance and repeat visits through special and promises strong growth well into the future. 121.4 million programs, passes and discounts. “China and key markets in Asia have a significant Total visits to the top 20 parks in North America, a decline of 1.1 percent from 2008. development pipeline compared to anywhere else Since 2005, attendance to the top 20 parks in North America has grown by 2.8 percent. While destination parks are adversely impacted in the world. The opening of Universal Studios by an economic downturn as discretionary Singapore in the first quarter of 2010 marked spending declines, lower cost regional parks the beginning of the new decade where Asia will and attractions tend to benefit from those same dominate and remain the primary region for future trends, as consumers shift to the less expensive growth of the industry in terms of new development entertainment option. Other regional attractions potential,” said Christian Aaen, Regional Director of 57.3 million Attendance for the top 20 European parks, level with 2008 numbers. such as museums and zoos tend to fare better as AECOM’s Economics practice in Asia. Total attendance for top 20 parks has grown by 7.3 percent since 2005. well during tighter economic periods. Once-high expectations for Dubai and the UAE have In 2009, the top-25 global parks attracted slightly been curtailed, for the time being at least. “Ferrari below the 186 million visits in 2008. North American World in Abu Dhabi is on track to open in 2010 but parks experienced a slight decline of just over that seems destined to be the flag bearer for the 1 percent, buoyed in large part by the strong region for the next few years until the economic performance of the Disney parks. In light of the situation stabilises,” said David Camp, Director of 65.5 million Total visits to the top 10 Asian parks down 3.5 percent from 2008. overall US economy’s decline of 2.5 percent based AECOM’s Economics practice. In Europe, regional For the new top 15 Asian parks, total attendance was 77.6 million in 2009, a decline of 2.9 percent compared to 2008. on Real GDP Growth, the theme park industry fared parks maintained attendance with some exceptions. quite well. In Europe and Asia, parks were slightly “Overall, 2009 was another good year for Europe’s down, while Mexico and Latin America overall theme parks,” reported Lesley Morisetti, Director of experienced an increase. AECOM’s Economics practice. Despite challenges, “there were signs of growth and development in the Mexico/Latin America region, especially in Brazil,” 12.3 million said Edward Shaw, Senior Associate with AECOM’s Attendance to top 10 parks in Mexico and Latin America up 1.3 percent from 2008. Economics practice. This year’s attendance numbers show that parks are weathering the recession and positioning themselves for the recovery. “We expect next year to show stronger figures with continued economic 20.7 million 12.8 million Top 20 worldwide waterparks attendance in 2009 – Total visitation to top 15 waterparks in US, recovery and pent-up demand,” says John Robinett, an increase of 2.1 percent from 2008. a growth of 3.0 percent from 2008 and 11.6 percent from 2005. Senior Vice President of AECOM’s Economics practice. (All figures are for calendar year 2009 unless otherwise indicated.) 2009THEMEINDEX p5 2009THEMEINDEX p6 REGIONAL OBSERVATIONS: CHRISTIAN AAEN AECOM PRINCIPALS WEIGH IN REGIONAL DIRECTOR (ASIA), AECOM ECONOMICS NORTH AMERICA in Abu Dhabi is on track to open in 2010 but that seems and an increase in events/shows. Management of most As noted in the 2008 TEA/ERA Attraction “Most parks felt the impact of the deepest recession destined to be the flag bearer for the region for the next waterparks maintain a positive outlook for 2010 as the Attendance Report most operators in Asia were since the Great Depression. The notable exception few years until the economic situation stabilises.” economy recovers and new attractions will be added” cautiously optimistic for 2009. The 2009 season was the biggest operator, Disney, which held its own in David Camp, Janice Li, turned out to be a challenging year for most Florida and was up significantly in California. Disney Director, AECOM Economics Senior Associate, AECOM Economics markets in Asia, from Japan to Korea and China. Ten successfully marketed special programs to its resident out of the top 15 parks in Asia were down, ranging market base at substantial discounts.” MEXICO/LATIN AMERICA ASIA from less than one percent to almost 12 percent Ray Braun, “Attractions throughout Latin America and Mexico were “Parks in Asia also felt the impact of the global Senior Vice President, AECOM Economics adversely impacted by the recession and the outbreak recession with attendance declines at many major decline. of the H1N1 virus – particularly in Mexico. However, parks.” “The brunt of the North American recession was felt despite those challenges, there were signs of growth Ray Braun, CHINA: DRIVING GROWTH in this year’s numbers. The two major markets, Los and development in the region, especially in Brazil. Senior Vice President, AECOM Economics Angeles and Orlando, suffered from weak tourism and Revenues and profit margins tightened throughout The industry is moving to Asia. At AECOM, we really both saw single and sometimes double digit declines in Mexico and Latin America as discounting and “Most operators in Asia were cautiously optimistic for view Asia and in particular China as the major their major parks – the exception being Disney which promotional programs were aggressively implemented the 2009 season, and that caution was justified. The growth region now and in the future. Overall the countered the trend through aggressive discounting in order to maintain attendance.” season turned out to be challenging due to the global total attendance for the Asian Top 15 for 2009 was and marketing. We expect next year to show stronger Edward Shaw, financial crisis, outbreak of H1N1 and poor weather 77.6 million, down from just under 80 million in figures with continued economic recovery and pent-up Senior Associate, AECOM Economics conditions in some markets in Asia.” 2008. The Asian market fell by an average 2.9 to 3.5 demand.” Christian Aaen, percent in 2009 among the top 10-15 theme parks, John Robinett, WATERPARKS Regional Director, AECOM Economics due to the global financial slowdown and recession, Senior Vice President, AECOM Economics “Similar to the rest of the global attractions market, waterparks in the U.S.
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