Theme Park Economics
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Theme Park Economics Gianna Balzano 2223494 Yannick de Bekker 2222933 Shari de Cortie 2363860 Rozemarijn van Essen 2202026 Rick de Keijzer 2220419 Marc Scheepers 2341611 Annabelle Schuuring 2219805 Nature Wonder World Brunssum, NL calculated on 13-‐01-‐17 Feasibility Study and Design Day Information Guests 1. Introductie The projected number of visitors can be calculated by looking at the amount of people living in the area around park. People living within 60 minutes 6.455.761 People living within 120 minutes 19.091.882 2. Tourists within 60 minutes 4.950.000 Gasten Total number of people residing in the area 30.497.643 • Feasibility Study Not all of these people will visit the park. There are catchment percentages to be taken from the total amount of people per radius • Ticket Price Yield Catchment <60 minutes 18% 1.162.037 • Catchment Rates Catchment <120 minutes 4% 763.675 • Screenshots Mappoints Catchment Tourists 6% 297.000 Projected number of guests 2.222.712 Funding By setting the admission price the warranted investment can be calculated. Secondary spending is also taken into account. Admission Price set to € 40,00 3. Financiering Yield of admission price for this project 65% Admission as percentage of total income 60% Projected income per admission € 26,00 Projected secondary spending per cap. € 17,33 Total income per person € 43,33 Total income per capita multiplied by projected number of visitors € 96.317.531,27 multiplied over # of years 10 € 963.175.312,67 EBITDA as percentage of total income 30% € 28.895.259,38 multiplied over # years 10 € 288.952.593,80 Invesment needed per capita € 150,00 Total investment needed for amount of visitors € 333.406.839,00 Funding Conclusion € -‐44.454.245,20 Design Day capacity calculation visitors in peak month, as percentage of total 20% 444.542 Amount of visitors in park on average peak day 1,2% of total 26.673 Absolute peak capacity 31.379 4. Design Day Peak amount of visitors IN PARK at the same time 75% of design day 20.004 Average entertainment units per hour 1,5 total: 30.007 Average throughput of rides 550 rides needed: 55 Inhoud Permitted cost per ride € 5.296.296,30 5. Conclusie 1. Introductie Deze feasibility study is gemaakt in opdracht voor de Advanced Course Theme Park Economics van Fontys ACI. De feasibility study is opgedeeld in drie hoofdlijnen, namelijk een onderzoek naar het realistische haalbare bezoekersaantal. Een onderzoek naar de financiering van het park en Design Day. Uit dit onderzoek vloeit de conclusie, waarin we een aantal oplossingen bespreken en advies geven voor de funding gap van Nature Wonder World. Het rapport is opgebouwd uit drie gedeeltes: 1. Gasten 2. Financiering 3. Design Day Bij elk van deze onderdelen zijn de uiteindelijke cijfers te zien, maar ook de studies die deze cijfers aantonen. In de bijlagen van het bestand zijn de benchmarks en peer-to-peer evaluaties te vinden. Name park: Location Nature Wonder World Brunssum, NL Population calculate travel distance 1 hour (km) Calculate population in 1 hour radius 65 6455761 calculate travel distance 2 hours (km) Calculate Population in 2 hour radius 110 19091882 Amount of Tourists in area 1 hour corrected* Feasibility 9000000 55% 4950000 2. Tourists in catchment area should not be counted twice (usually around 50%) Gasten Study Likely visitors Catchment rate 0-‐60 # likely visitors Guests 18% 1162037 The projected number of visitors can be calculated by looking at the amount of people living in the area around Catchment rate 60-‐120 # likely visitors 4% 763675 park. Catchment rate Tourists <60 # likely visitors People living within 60 minutes 6.455.761 6% 297000 People living within 120 minutes 19.091.882 Look up percentage in Catchment Rate tab. Pay attention to size of park and low, avg, high Total number of visitors 2222712 Tourists within 60 minutes 4.950.000 Total number of people residing in the area 30.497.643 Not all of these people will visit the park. There are catchment percentages to be taken from the total amount of people per radius Catchment <60 minutes 18% 1.162.037 type admission yield admission as % of total income Catchment <120 minutes 4% 763.675 large theme parks 58% 60% Catchment Tourists 6% 297.000 medium theme parks 65% 60% small theme parks 65% 60% Ticket price Projected number of guests 2.222.712 large amusement parks 25% 40% small amusement parks 30% 80% source: IAAPA Yield Benchmark information Catchment Rates on projected number of visitors <500.000 travel time low average high get population information from 0-‐60 8,0% 9,0% 10,0% www.freemaptools.com for travel distance 60-‐120 2,0% 2,5% 3,0% www.populationexplorer.com for population tourist <60 2,0% 2,5% 3,0% Mappoints <1.000.000 travel time low average high 0-‐60 11,0% 12,0% 13,0% 60-‐120 2,0% 3,0% 4,0% tourist <60 2,0% 3,0% 4,0% 1.000.000 -‐ 2.000.000 travel time low average high 0-‐60 14,0% 15,0% 16,0% 60-‐120 2,5% 3,5% 4,5% tourist <60 3,5% 4,5% 5,5% >2.000.000 Catchment travel time low average high 0-‐60 17,0% 18,0% 19,0% 60-‐120 3,0% 4,0% 5,0% tourist<60 5,0% 6,0% 7,0% Rates Bron: ArcGis Maps Warranted investment projected admission price yield admission price admission as % of total income € 40,00 65% 60% We zeIen de admission prijs op 40,00 aangezien we find similar plans from Benchmark Entertainment Value verwachten dat de verblijfsduur gemiddeld wel op 7 a 8 uur Tab look up percentage in Ticket Price Yield look up percentage in Ticket Price Yield kan liggen. In de entertainment benchmark tab zijn de ingeschaIe verblijfsduren wat hoog, echter is dan tussen de 3. projected income admission price per cap projected secondary spending per cap total revenu per cap 5 en 7 euro entertainment value per uur niet buitengewoon Financiering € 26,00 € 17,33 € 43,33 hoog. Aangezien de Nederlanders in het algemeen nog wat krenterig zijn als het gaat om entreeprijzen (EReling etc.), is Funding Calculate for x years 40,00 een mooi begin met een entertainmentvalue van 5 a 6 year 1 10 euro per uur. By setting the admission price the warranted investment can be calculated. Secondary spending is also taken into Total revenues € 96.317.531,27 € 963.175.312,67 account. investments are usually earned back over more years Admission Price set to € 40,00 Ebitda year year Yield of admission price for this project 65% percentage of revenues 1 10 30% € 28.895.259,38 € 288.952.593,80 Admission as percentage of total income 60% usually around 30% of revenues Projected income per admission € 26,00 Projected investment Zoals de benchmark van KAAK aanduidt is de investment per visitor 'rule Projected secondary spending per cap. € 17,33 investment per visitor of thumb' inderdaad ergens rond de 100. Echter valt in diezelfde € 150,00 benchmark ook af te lezen dat deze aanzienlijk hoger ligt bij de nieuwere Total income per person € 43,33 industry rule of thumb is €100, based on benchmark by Kaak it's €109,61 geopende plannen. Hierbij vindt dus een verschuiving plaats naar een wat hogere spending per cap. De oudere parken met een vrij lage projected investment € 333.406.839,00 Total income per capita multiplied by projected number of visitors € 96.317.531,27 investment per visitor vertekenen hierbij het beeld. Om mee te gaan met de trend van een hogere investment per visitor is dit bedrag dus multiplied over # of years 10 € 963.175.312,67 Funding conclusion verhoogd naar 150,00 in plaats van het aanhouden van de benchmark projected investment € 333.406.839,00 gemiddelde. EBITDA as percentage of total income 30% € 28.895.259,38 warranted investment after # of years 10 € 288.952.593,80 multiplied over # years 10 € 288.952.593,80 gap € -‐44.454.245,20 Invesment needed per capita € 150,00 Total investment needed for amount of visitors € 333.406.839,00 Funding Conclusion € -‐44.454.245,20 Design Day Calculation Name of park Location Nature Wonder World Brunssum, NL Projected number of visitors 2222712 in a year 4. Peak month visitors percentage of people coming in high season Design Day 20% 444542 Design day 1,2% 26673 percentage taken of total number of visitors a year. This is a rule of thumb. Can be calculated more precisely 85% Design Day capacity calculation percentage of peak day 15% visitors in peak month, as percentage of total 20% 444.542 PEAK DAY 100% 31379 Amount of visitors in park on average peak day 1,2% of total 26.673 Peak ground amount of visitors in the park at the same time Absolute peak capacity 31.379 percentage of design day Peak amount of visitors IN PARK at the same time 75% of design day 20.004 75% total visitors 20004 Average entertainment units per hour 1,5 total: 30.007 Average throughput of rides 550 rides needed: 55 average entertainment units per hour Permitted cost per ride € 5.296.296,30 1,5 total entertainment units per hour 30007 average ride throughput per hour 550 number of rides 55 average permitted cost per ride € 5.296.296,30 Mogelijkheden veranderingen in het park Uiteraard om het park zelf winstgevend te maken kan er ook gekeken worden naar veranderingen in het design, ontwerp of attractieaanbod. Mogelijkheden genoeg om dingen weg te halen of te verkleinen zodat de funding gap wegvalt of wordt verkleint.