Theme Park Tourism
Brendan Richard University of Central Florida, Orlando, USA Email Address:
[email protected] Kelly Kaak University of Central Florida, Orlando, USA Email Address:
[email protected] Marissa Orlowski University of Central Florida, Orlando, USA Email Address:
[email protected]
Recommended Citation Richard, B., Kaak, K., & Orlowski, M. (2017). Theme Park Tourism. In L. L. Lowry (Ed.), The SAGE International Encyclopedia of Travel and Tourism. New York, NY: Sage.
The final publication is available at Sage via https://us.sagepub.com/en-us/nam/the-sage-international-encyclopedia-of-travel-andtourism/book244212
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Theme Park Tourism
Theme parks are a part of the greater attractions industry. Theme parks are large, mostly outdoor, entertainment enterprises that trace their origins back to 19th century pleasure gardens that, over time, converted to amusement parks with a mix of entertainment including rides, shows, games, and food and beverage offerings. Beginning in the 1950s with the opening of Walt Disney’s Disneyland, the theme park sector has expanded throughout the global economy. Today, the annual attendance at the world’s largest and most attended theme parks is 323.4 million; it is likely that a comparable level of attendance is achieved by the second tier of theme parks throughout the world. Global distribution of market share (in terms of attendance) of the industry is 42% North American, 18% European, 36% Asian and 4% Latin American. Year-over-year growth is minimal (approximately increasing at the same low rate as growth in gross domestic product) in the mature markets of North America and Europe. Not surprisingly, annual theme park attendance growth is most significant in Asia (+ 7.5% per year) and Latin America (+ 3.8% per year). The largest global theme park operators are concentrated among a few companies that control multiple theme park operations throughout the world: Walt Disney Parks & Resorts (representing 35% of global market share); Merlin Entertainment Group (16% of global market share); and Universal Parks & Resort (10% of global market share). Smaller regional operators such as OCT Parks China, Six Flags Inc. and Parques Reunidos each represent an additional 7% of global market share. The most attended theme park in the world in 2013 was the Magic Kingdom at Walt Disney World in Florida, USA with a total of 18.6 million guests. Among the global 25-most-attended theme parks, nine were operated by Walt Disney Parks & Resorts, four were Universal Studios parks, and two were SeaWorld marine animal parks. The geographical locations of the 25-mostattended parks were dispersed throughout the United States, Asia and Europe: eleven were in the USA; five were in Japan; two each were in France, South Korea and Hong Kong; and one each were in Germany, Denmark and the Netherlands. Origins Theme parks are both a continuation and a refinement of the outdoor entertainment product known as the amusement park. In the 1800s, urban dwellers would congregate on the weekends in gardens and parks to listen to bands, dance, picnic, and drink beer. Over time, to attract and entertain guests these venues began to add vaudeville acts and other diversions. World’s Fairs of this time began to introduce mechanical rides to the public and early amusement parks were quick to incorporate these into their entertainment offerings. Modern, wooden rollercoasters were first opened in the 1880s at parks in Coney Island in New York City. By the time of the postwar boom of the 1920s, traditional amusement parks such as Steeplechase, Luna Park, and
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Dreamland at Coney Island had become international sensations and had inspired imitators throughout major U.S. and European cities. The financial Depression of the 1930s eliminated the discretionary income of many families and visits to amusement parks waned. Many parks closed or limped along with few capital improvements or adequate upkeep. The parks’ declining conditions worsened due to materials rationing during World War II and many of the once great parks were more renowned as hangouts for an unsavory crowd than as a location for family recreation. At this time the American animator Walt Disney began taking his daughters on visits to the local amusement parks. He was disappointed in the quality of the attractions and the level of service his family received. He also was flustered that the rides available prevented him from sharing the experience with his daughters; he was forced to sit on a park bench and watch as they rode. This inspired him to envision a better park; a park that was clean, well-maintained, that told a story and enabled parents and children to engage in an actual experience together. As the owner of a Hollywood movie studio and various animated content, Walt incorporated his intellectual properties with the new park he was planning. This new venture met with numerous reservations among potential financial backers and executives within his own company, forcing Walt to invest a considerable amount of his own money in the park venture. Prior to beginning construction, Walt took his designs to a gathering of contemporary amusement park experts. They cautioned him that too much space and expense was devoted to “wasteful” landscaping, themed buildings that produced no revenue, and custom rides that would be expensive to build and maintain. They were alarmed to see that Walt’s park plan failed to include proven moneymakers such as Ferris wheels, roller coasters, hot dogs or beer. They concluded that he should stick to making movies. Supposedly Walt was delighted to hear of their doubts; he knew he had created something new. The park was built in less than a year’s time and opened on July 17, 1955. The park succeeded beyond anyone’s expectations. Several parks rushed to open in order to capitalize on the spillover effects from Disney’s success. Some of these early theme parks were traditional amusement parks that hastily adopted themes (Pacific Ocean Park in Santa Monica, California and Cedar Point in Sandusky, Ohio), others were themed attractions that expanded their operations to include multiple themed sections others (Knott’s Berry Farm in Buena Park, California and Cypress Gardens in Winter Haven, Florida). Many of these early theme parks were short-lived. The first theme park to achieve success after Disneyland’s opening was Six Flags Over Texas. This park was conceived by Angus Wynne, a Texas land developer who had visited Disneyland and thought that such an establishment would be an appropriate addition to a development planned for the North Texas suburb of Arlington. Unlike many of the prior post-Disneyland developments he did not attempt to recreate Disneyland in Texas but sought to build a smaller park that served the needs of the surrounding population versus attracting tourists on vacation. Six Flags Corporation became the first regional theme park and would pioneer many innovations that became industry standards: the first exclusive use of pay-one-price admission policies, the first log ride attraction, and the
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first run-away-mine train themed rollercoaster attraction. Ultimately, Six Flags became the first theme park chain, operating a number of regional parks distributed through markets all over North America. The success of Six Flags was followed by the Success of SeaWorld (San Diego, California) in 1964. By the mid-1970s, most major markets in the United States were served by a regional theme park. Additionally, Walt Disney World opened near Orlando, Florida in 1971, providing a full-service theme park resort destination for the eastern half of the country. Following the rebuilding of the post-war economies and increases in automobile ownership, the first modern European theme parks began to appear in the 1970s. In Asia, the first theme parks were opened in Japan in the 1970s and were joined by parks in South Korea and Hong Kong. Latin America’s first theme parks opened in Mexico and have since been joined by parks in Brazil, Chile, Argentina and Columbia. Definitions & Park Features The simplest distinction to make among theme parks is to segment them according to their scope: parks intended as destination theme parks versus regional theme parks. Destination theme parks typically include surrounding resort infrastructure (hotels, recreational activities, attractions and themed dining and merchandising hubs) that serve as tourist destinations. The parks are characterized by elaborate theming, often incorporating content from popular media franchises (movies, cartoons, television). Most are owned by large corporations and operate on a year-round basis. The majority of their guests (approximately 90%) are derived from the tourist sector, meaning that park visitors originate from an area that is at least 50 miles from the park. Regional theme parks attract the majority of their attendance from the area immediately surrounding the park; approximately 90% of their guests reside within a three-hour drive of the park. Regional theme parks operate on a seasonal schedule, approximately 150 days per year. They are often dominated by their thrill rides and increasingly are operated by chains. Disneyland Paris is an example of a destination theme park resort, attracting visitors throughout Europe, while Parc Asterix is an example of a regional theme park serving the local French population. However, this distinction still does not define or fully describe what a theme park is. At the very least, theme parks attempt to create a fantasy atmosphere of another place and time. There will often be a dominant, overarching theme and several sub-themes that are derived from the main theme. By definition, theme parks include several distinct sections or “lands.” The theme is primarily communicated through visual elements as well as architecture, landscaping, costumed personnel, rides, shows, food services and merchandising. Other traits commonly associated with the theme park definition include the concept of a payone-price entrance fee, a physical design that seeks to isolate the themed environment from the real world outside in order to promote the story, an obsessive focus on cleanliness and maintenance, attendance in excess of one million a year, high levels of investment, enough
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diversions to create a visit that lasts five to seven hours, and central management structures indicative of corporate ownership. Theme parks are known for their ability to attract families, but the reality is that theme parks provide a range of activities to appeal to all types of visitors. When asked to describe a theme park experience, most consumers would be likely to recall rides. Preeminent among rides are rollercoasters. Rollercoasters are expensive to construct but in high demand among parks and the guests that visit them. Some theme parks specialize in their collection of thrilling rollercoasters (for example, Cedar Fair in Ohio and Six Flags Magic Mountain in California). Rollercoasters tend to be classified based on the materials used in their construction (wood versus steel) and the ways they move: hyper-coasters reach great heights and high speeds; flying coasters carry passengers horizontally below or above the rail; inverted coasters carry passengers with their feet hanging down; vertical coasters feature 90 degree climbs and falls; and indoor coasters are often elaborately themed. Many of the most iconic theme park rides (Disney’s Haunted Mansions and Pirates of the Caribbean) qualify as “dark rides.” Described as rides within enclosed structures that combine movement, film, mechanical animatronics, sound effects, music, narration, and scenery to produce the ride experience. Most theme parks include a sampling of dark rides and include dark ride elements within other attraction offerings. Other in-park rides can include “flat rides,” rides that are based on traditional mechanics (often centripetal force), utilizing repetitive movements. Flat rides are low cost and can be considered family-oriented; they include carousels, trabants and scramblers. Thrill rides offer scenic views of the park and the surrounding landscape and often serve as park landmarks; examples include Ferris wheels, sky towers and free falls. Transportation rides convey guests among dispersed stations located throughout the park; for example, train rides, monorails, aerial tramways and excursion boats. Water rides are popular family-oriented attractions, but often require large amounts of available space. Flumes, rapids rides and splash rides are all examples of water rides. Simulator rides seek to recreate a journey or adventure by combining film techniques with physical movements and special effects. However, theme parks include a diversity of in-park entertainment that extends beyond rides. Ski shows, stunts shows, animal shows, musical Broadway-type shows, musicians, magicians, puppet shows, parades, street performances, character meet & greets, minstrels, acrobats, and craftsmen demonstrations are all parts of the theme park entertainment lineup. Technical productions – shows featuring lights, music and color – can include fireworks displays, dancing fountains, laser light shows, audio-visual film presentations, and even Christmas light displays. Finally, in-park components include significant and themed food and beverage and merchandise offerings. Theme park food creates much satisfaction for guests, can be used to extend the theme, adds to overall park ambiance, and contributes significantly to profits. Theme park merchandise achieves the same purposes but sales are not due to the ability of the products to
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satisfy customers but to provide park guests with the option to commemorate their experience at the park. Financial Operations The main determining factor for a theme park’s location, size, and revenues is the attendance projection – how many guests will pass through its turnstiles each season. Theme parks are susceptible to a number of factors that can increase or decrease attendance, and attendance is the most important determinant of overall success – if attendance is down, revenues from admissions, food and beverage, merchandise and games will be down. The health of the economy or a measure of consumer sentiment determines if patrons will choose to spend their discretionary dollars on a park visit. Economic considerations such as the cost of admission and the availability and pricing of gasoline and airfares are considered in the guests’ decision making process. Weather plays a part in influencing day-to-day attendance, while adverse publicity from a park accident, a reputation for long lines, or a lack of things to do will keep potential guests from visiting. Marketing efforts and the addition of new rides or attractions can increase attendance, while external factors such as television, movies, sporting events, video games or the Internet can compete indirectly for theme park visitors. Prior satisfaction with the experience at a theme park is an important determinant of repeat attendance, which represents 30-40% of overall attendance. External factors such as travel safety, wars, riots and acts of terrorism can slow theme park sales. Lastly, practical considerations such as school vacation calendars and the demographics of the available market— family size, age distribution, disposable/discretionary income—all play a part in determining theme park visitor patterns. The construction of a theme park represents an investment of millions of dollars. An industry rule of thumb is to invest at least $100 in construction cost per expected first-year visitor; thus, an attraction anticipated to attract two million visitors per year demands an initial investment of $200 million. The addition of theming increases overall construction costs by at least 5% and can add 20% to the cost of a ride. The source of revenues and expenses for theme parks varies among operations; nonetheless, the greatest percentage of gross revenues (approximately 40-60%) comes from the collection of admission charges. The remainder of revenue comes from in-park spending. The largest category of in-park spending is for food and beverage sales, followed by merchandise and then games. Parking and sponsorships can also be a source of revenues for parks. Much effort is placed on increasing the length of stay in order to increase the amount of in-park spending—the longer the time spent in a park, the greater will be the per-capita spending. Operating expenses at the typical park are divided among labor costs (about one-third of total expenses), maintenance, marketing, insurance, and capital improvements such as new rides and attractions.
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Future Directions & Trends Current global trends in the theme park industry include a greater use of intellectual properties and international brands throughout the theme park experience. Evidence of this trend is seen in Universal Studios’ inclusion of Harry Potter themed attractions at its parks in Florida, Japan and Hollywood, and Disney’s inclusion of Marvel content in attractions at their Asian operations. Another global trend is the expansion of current stand-alone theme parks into destination resorts with the addition of themed hotels, additional theme park gates, and supporting retail, dining and entertainment developments. All theme parks are working to integrate social media into their marketing efforts and to incorporate it into the themed experience. Parks are also working to integrate enhanced technologies to streamline sales, promote interactivity, manage queue line waits, personalize the customer experience, and mine consumer behavior to increase profits and enhance customer loyalty. Market growth in the United States is expected to grow at a rate parallel with the rate of growth in gross domestic product (approximately +1.8% per year). In other words, the U.S. theme park market is mature and no notable new parks are being developed. Destination parks in Southern California and Central Florida will benefit from projected large growth in international visitors to the U.S., many of whom will include a visit to a theme park in their itineraries. Similar to the U.S., growth in Europe is not expected to stride forward but will remain steady. Asia is expecting to see continued development of new parks and growth in attendance at existing parks. Within the past few years, a Universal Studios park opened in Singapore and a Legoland opened in Malaysia. The most notable upcoming event in the Asian theme park market will be the 2015 opening of the Disney resort in Shanghai, China. This park has the potential to quickly become the most visited park in Asia. Latin America is a growing theme park market, yet all of the current parks in the region are oriented toward the local markets in which they reside. With growing interest in the theme park product and growing influence throughout the region, it is not implausible to suggest that a major destination theme park resort will be developed within the next generation somewhere in Latin America. See Also: Tourist Attractions; Destination Management, Domestic Tourism
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References Adams, J.A. (1991). The American amusement park industry. Boston, MA: Twayne Publishers. Clavé, Savador Anton (2007). The Global Theme Park Industry. Cambridge, MA: CABI. Kyriazi, Gary (1976). The Great American Amusement Parks. Secaucus, NJ: Citadel Press. Milman, A. (1991). The role of theme parks as a leisure activity for local communities. Journal of Travel Research, 29(3), 11. Price, H. (1999). Walt’s revolution by the numbers. Orlando, Florida: Ripley Entertainment Inc. TEA / AECOM. (2014). 2013 Theme index: The global attractions attendance report, Themed Entertainment Association, http://www.aecom.com/What+We+Do/Economics/Theme+Index+Report. Vogel, H.L. (2004). Entertainment industry economics, a guide for financial analysis. New York: Cambridge University Press. Weinstein, R. M. (1992). Disneyland and Coney Island: Reflections on the evolution of the modern amusement park. Journal of Popular Culture, 26(1): 131-164.
