December 27, 2011 -- Updated December 27, 2011 11:57 HKT
Theme parks enter a new Golden Age
Investment in theme parks and cutting-edge attractions like Wizarding World of Harry Potter at Universal Orlando rose during the recession, suggesting the business is entering a new Golden Age.
“It’s almost like a Theme Park 2.0, or a re-boot,” said Brent Young, co-founder of the Super 78 production studio in Hollywood, California. “We are really coming into a second Golden Age in theme park development,” he said.
The 1st boom, which peaked in the 1970′s, saw extensive construction of theme parks in the United States from the ground up.
Development of Walt Disney World, Six Flags, Busch Gardens and numerous regional parks led to a saturation of the US market by the 1980′s.
The New Era is a Global phenomenon propelled by technological advances and a growing middle-class in Asia and emerging countries. In the US there is a squeeze on the middle-class. But in other parts of the World, there is an expanding middle class.”
China is experiencing a theme park construction boom comparable to what occurred in the United States in the 1970′s.
The coming Disney park in Shanghai triggered an expansion of the Chinese regional theme park company Happy Valley. Disney broke ground in Shanghai in Y 2011, and anticipates a Y 2015 opening.
In the past when Disney has opened in a region of the World, it has encouraged others to enter. With the Shanghai Disney park, one expects a similar increase in construction and development.
The New Golden Age is marked by the additions of highly themed and immersive experiences using state-of-the-art technology.
The huge success of the Harry Potter ride at Universal Orlando, which executives say boosted attendance by 50%, has increased demand.
Since that attraction opened in June 2010, Universal has been breaking its attendance records.
Spending on new attractions in the United States also is up, estimates are that spending rose 30-35% over the past 2 yrs, following 4 yrs of mostly stagnant attendance and deep discounting at parks. Much of the new spending is on redevelopment and additions to existing parks according to an industry source.
Several examples of recent investment in the central Florida tourist hub include; Sea World Orlando’s planned overhaul of its Penguin exhibit to include state-of-the-art interactive ride technology, and the just-completed revamp of the historic Cypress Gardens ski-show park in Winter Haven into a LegoLand.
Ride manufacturers who met in Orlando in November for the annual International Association of Amusement Parks and Attractions convention have never been busier, they are almost at capacity for the next couple of years according to reports.
Experts said the end is not in sight, thanks to technological advances that will continue to create demand.
Within the next 10 yrs, the experts expect attractions will enable park guests to feel as if they are sharing space with fully rendered 3-D characters and other nearly unimaginable experiences, it will be like going to the 5th dimension.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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