The theme park tourism market is set to reach USD 49.1 billion in 2022
Ever since the Covid-19 pandemic has begun to ease around, one of the sharpest growth in revival of tourism has been reported by the numerous players in the global theme parks market. While many have been busy investing in introducing new experiences or renovating and improving their current offering, many new parks have also opened up around the world.
According to a report by global markets analysis firm Future Market Insights (FMI), the theme park tourism market is set to reach USD 49.1 billion this year and the sector is set to grow at 13 pc CAGR for the next decade, reaching a market size of USD 166.67 billion by 2032.
FMI says that the high growth rate is due to multiple factors that are set to positively affect the market. It says that one of the key drivers of the growth is the rising demand for theme parks that has been visible within the low and middle-income countries, where the consumer base is modernising and looking to explore different outdoor activities. FMI adds that theme park tourism is an all-season business, with demand for the attractions being present round the year. This makes it attractive for investors as well, who also look at the diversified revenue stream this market possesses.
FMI adds that the emergence of new technology has helped the industry keep itself up to speed with the increasing consumer demand for variety. Merchandising and other high-profit margin revenue sources have kept the market in a good situation, where the operators can focus on investing and improving their services. All these factors continue making the theme park tourism market extremely lucrative, it says.
FMI report says that themes related to popular culture help in attracting more consumers to the theme park tourism market. It adds that the majority of demand is fuelled by domestic tourists and ticket sales and merchandise remain the prominent revenue sources.
The analysis says that countries like China, Singapore, and India are rapidly growing, with the Asia Pacific region currently holding 18 pc of the total market share. Though the traffic is mainly local, a majority of the travellers are packaged and prefer booking their tours with the help of online booking channels.
The report says that Covid-19 pandemic was a major blow to the theme park tourism market, where operations were halted across the globe. The implementation of strict lockdowns around the world by the health authorities meant that travel and social interactions were cut-off for non-essential activities. The market was estimated to be impacted by about 30 pc by the spread of the pandemic, resulting in panic among investors and key industry firms. The hesitancy of tourists to visit the parks due to safety issues was another blow to the theme park tourism market.
FMI says that after the pandemic began easing, the theme park operators took some drastic safety measures and improved their operating protocols. Addressing the safety concerns of the consumers was the priority of the businesses in the theme park tourism market. The current market situation has improved with the arrival of vaccines and the lifting of restrictions. Theme parks are now expected to operate at full capacity, with demand from consumers increasing. People who missed outdoor activities during the pandemic are expected to explore more in the coming years, leading to faster growth in the market.
The rise of popular culture across the globe has been the biggest factor in the increasing growth and revenue of the theme park tourism market. Multi-movie franchises, cinematic universes, globally popular shows, and animation series have been the biggest themes in such theme parks across the world, attracting millions of visitors every year, says FMI.
It adds that the merchandise segment also benefits strongly from the pop culture factor, where consumers are ready to spend a significant amount for the related toys, clothing and accessories. This has made the theme park firms focus on collaborations with pop franchises and content owners to gain the maximum consumer attention.
FMI says that investments in high-tech animatronics, hydraulics, and pneumatics have helped make the attractions more fun, and thrilling, while increasing the level of safety. These technological advancements are expected to help the market grow at a good pace, while also helping the firms keep their market shares.
Although the industry is expected to grow at a high rate, the factors like high upfront investment costs are working as an entry barrier for new players to enter the market. This along with the long time-consuming processes like construction, installation, and permit approvals are not working in the favor of the market; licensing of intellectual properties is also a major cost that the players have to incur. All these factors make the entry into market highly difficult, but overcoming these barriers does guarantee a substantial stream of revenue.
