Theme park developers to focus on Asia

Theme park developers to focus on Asia
Dec 28, 2009 - PropertyGuru.com.sg

The global economic downturn has bankrupted some US theme parks and set grand plans for new ones in the Middle East.

However, in Asia, a development boom is ongoing, as operators compete to roll out parks and add attractions to draw in the region's growing middle class.

In Hong Kong, the redevelopment of Ocean Park worth around US$750 million is set to be completed in 2013, while Hong Kong Disneyland Resort just started its US$465 million expansion, which will add three more areas by 2014. In November, the Chinese government finally approved a plan by Disney to build a theme park in Shanghai. It is expected to be launched in 5 to 6 years.

In Singapore, Resorts World at Sentosa (RWS) is set to open its Universal Studios early next year.

“Even with the economic hardship the world has been feeling, there is still stability in this part of the world, and people are still looking to do things that are out of the ordinary,” said Tom Mehrmann, the Chief Executive of Ocean Park.

Based on a report by the consulting firm, Economic Research Associates, and an international industry association, Themed Entertainment Association, the overall attendance at the world's top 25 theme parks has dropped over the past couple of years.

However, visits to the 10 most-visited parks in the Asia Pacific region continues to increase, though at a slower pace. Developers want to focus on the region due to this upward trend, which is expected to accelerate.

The industry anticipates Asia will have a solid growth, although the number of what Mr. Mehrmann calls 'world-class parks' in the region has increased to over 35 from only 15, over the last six years.

“What it says is that the market is growing, the middle class is growing, discretionary time and money is growing,” he said.