Economics Global Attractions Attendance Report p1 Global Attractions Attendance Report Credits TEA/AECOM 2011 The definitive annual attendance study Theme Index: The Global Attractions Attendance Report for the themed entertainment industry. Publisher: Themed Entertainment Association (TEA) Executive Editor: Gene Jeffers Research: Economics practice at AECOM Published by the Themed Entertainment Editor: Judith Rubin Association (TEA) and the Economics Publication team: David Camp, Jodie Lock, Daniel Elsea practice at AECOM. © 2012 TEA/AECOM. All Rights Reserved. V3 Contacts For information about TEA: Judith Rubin, [email protected], +1 314 853 5210 tel Gene Jeffers, [email protected], +1 818 843 8497 tel www.TEAconnect.org For information about AECOM’s Economics team and the report: John Robinett Chris Yoshii Senior Vice President, Economics Global Director, Asia [email protected] [email protected] +1 213 593 8785 tel +852 3922 8000 tel David Camp Brian Sands, AICP Vice President, Europe/Africa/Middle East Vice President, Economics + Planning [email protected] [email protected] +44 20 3009 2255 tel +1 202 821 7281 tel www.aecom.com/economics p2 p3 Tables p. 6 Global 11 Top 10 theme park groups worldwide 12 Top 25 amusement/theme parks worldwide The global picture 14 Top 20 water parks worldwide By John Robinett Americas Exemplary reinvestment and management practices rise to the top: 22 Top 20 amusement/theme parks in North America 3.8% worldwide growth in 2011. 25 Top 10 amusement/theme parks in Latin America 26 Top 20 water parks in North America p. Asia-Pacific 36 Top 20 amusement/theme parks in Asia-Pacific 18 38 Top 15 water parks in Asia-Pacific Europe Americas: Harry Potter lifts off 46 Top 20 amusement/theme parks in Europe By Brian Sands, AICP 50 About this study Theme parks enjoy 2.9% attendance growth with Universal’s Harry Potter 51 About TEA & AECOM attraction in the lead. 2 Credits p. 2 Contacts p30 Asia’s attendance milestone: “We’re seeing 103.3 million good results, given By Chris Yoshii Asia passes the 100 million attendance mark for theme parks in 2011. economic conditions — overall, modest p. 42 growth for theme and Europe’s mixed year amusement parks.” John Robinett p06 By David Camp European theme parks are still coping with recession, but grow by 2.8%. p4 p5 numbers and may surpass it — perhaps within a decade. 196.3m Top 25 parks The global picture • Third, the attractions industry in Asia is coming worldwide attendance into its own in terms of outstanding and unique creativity, trend-setting, and business / development models. Reinvestment in Asian 3.8% Exemplary parks in 2011 has raised the bar not just on the Top 25 parks specific properties but for the entire industry. worldwide growth reinvestment Integrated resorts and an emphasis on lavish theatricals have earned accolades as well as patronage, and point to the future. Already we are and management seeing operators launch new attractions in Asia before North America, as with Universal’s new practices rise to the TransformersTM ride. Let’s hear more about top: 3.8% worldwide those North American growth in 2011. numbers. As mentioned, North America grew at 2.9 percent this Overall, what are the year, although a considerable portion of this growth Interview numbers telling us in terms 127.0m John Robinett was driven by the success of The Wizarding World of of economic recovery? Harry Potter land at Universal Studios Florida; without North America top 20 Senior Vice President parks attendance Economics Harry Potter, North America grew at 1.6 percent. That We’re seeing good results, given economic conditions 1.6 percent figure points to continued, slow economic [email protected] — overall, modest growth for theme and amusement recovery from the recession and modest attendance +1 213 593 8785 tel parks — but there are three things that really stand growth for most parks, in a mature market. This is 2.9% out this year when you look at the figures: seen not just in park attendance figures but also North America top 20 parks growth in tourism numbers. The major markets of Los • First, a pair of outstanding performers in the U.S. Angeles and Orlando are up in the middle single — Universal Orlando and SeaWorld San Diego digit percentages, reflective of these large, mature — are a lesson to all operators on how to apply markets. The numbers are nevertheless encouraging reinvestment to beat the business cycle. The when you take into account that domestic spending is Wizarding World of Harry Potter alone brought in a still subject to downward pressure: real estate hasn’t significant and impressively large chunk of North recovered, the equity in homes is not what it used to America’s overall attendance increase. Overall, be, and consumers in general are cautious. North America grew 2.9 percent; subtract Harry Potter and it grew at 1.6 percent. It takes guts to invest in the teeth of a recession, and it’s these bold management moves that have led to • Second, Asia’s attendance milestone of 103.3 the success of our leaders this year. It’s difficult for million for 2011, when added to the parks coming operators to time reinvestment; it takes time to get on line there in the near future indicates that the something designed and built, and it’s impossible to region is closing in on North America’s attendance exactly gauge the best time to open in terms of the p6 p7 business cycle. Add to that North America is a mature Moving on to Asia and market that’s slowly recovering from a recession. China, please elaborate All that would reasonably dampen expectations; on the 100 million nevertheless Universal opened a major new “land” attendance milestone. and it paid off with tremendous returns, and SeaWorld, likewise has done handsomely. China’s overall economy grew slightly less in 2011 than the year before, but it still stands as the 103.3m How can smaller fastest growing market in themed entertainment. As Asia top 20 parks operators apply incomes go up, a larger percentage of the population attendance this wisdom? reaches the threshold at which they can afford to visit themed attractions. Asia is the best performer Not everyone has the resources to bring in a Harry this year with 7.5 percent overall growth. This includes 7.5% Potter, but all have access to the classic tools of the double-digit growth in a number of Chinese parks. Asia top 20 parks business: good management, good marketing and This exceptional growth was led by tremendous growth strategic reinvestment. Reinvestment can occur all performance at Ocean Park, whose redevelopment along the scale. Reinvestment in new rides and shows drove a 28.7 percent attendance increase this year. can drive attendance beyond what the market would normally bear. As full economic recovery in North In terms of theme park and amusement park America and Europe is going to take a while, operators attendance, Asia is now in North America’s rear- should take this to heart and apply their imaginations. view mirror, so to speak. With 103.3 million (to North America’s 127.0 million) Asia represents about one- Are there signs of recovery third of global theme park attendance. And each in the European leisure time Asia adds a new theme park, it creates large markets? increments in overall attendance. Asia is still adding parks, while North America is not. The gap will close Europe has not had a great year from an overall substantially when Shanghai Disney opens — and economic standpoint. Under the circumstances, we already know of several other major Asian theme 57.8m theme parks grew at 2.8 percent which is laudable parks planned or under construction. By adding 5-10 Europe top 20 parks performance given the conditions and consumer more theme parks, Asia will probably catch up to attendance sentiment. North America and then surpass it. Recognizing the ascendancy of this market, the industry is starting Most of us in the industry need to be able to bring our to launch new attractions first in Asia, as with 2.8% services to the global community. AECOM has found Transformers™: The Ride-3D, which had its world Europe top 20 parks that the way to thrive internationally is to build a premiere at Universal Studios Singapore. growth strong local presence — to have resources, operations and local knowledge in every major market. A strong What factors are driving local presence empowers a company to assess the upward trend in markets economically and produce meaningful terms of attraction feasibility studies and economic impact reports; quality and creativity it facilitates pulling together teams of specialist in Asia? creatives and taking a project successfully through production and construction. Incomes are continuing to rise in China, and most of the park guests are drawn from the massive resident markets and intra-Chinese tourist markets. The p8 p9 quality of the attractions will continue to increase And what’s happening on par with the quality of the markets, as we see is with the big theme park already happening. groups this year? It is no exaggeration to say that some of the most Most of the large global operators did fairly well exciting and innovative visitor attractions and this year with an average global growth of 4.6%. guest experiences are showing up in Asian themed The growth was driven primarily by Merlin (13.2%), entertainment venues. Several outstanding examples Universal (13.7%), and OCT (12.6%). The high were recognized by TEA with Thea Awards in the growth operators focused on a three-fold strategy past few years, most recently: “House of Dancing of park acquisition, park expansions, and new park Water” at City of Dreams, Macau; Space Fantasy the development, which expanded their market share in Ride at Universal Studios Japan; and Crane Dance at what were, in many cases, modest growth markets.