Europe s Theme Parks
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Europe's Theme Parks: A Diverging Landscape
War and economic downturns often have unexpected effects on the entertainment sector. While tightening budgets lead to cuts in big-ticket expenses like cruises and resort vacations, people still seek diversion from anxiety and bad news. Initially, home entertainment sees a surge, but as stability returns, consumers flock back to theaters and theme parks, eager for relief and fun.
A 2002 report by Solomon Smith Barney revealed significant declines in entertainment stocks during the Gulf conflict, with large cap stocks falling by 32% and travel and cruise stocks by 52%. Despite theme parks' relative resilience, these stocks still trade low, though they bounce back sooner after short and decisive conflicts.
In Europe, theme parks are still growing. The continent hosts a few notable parks: Denmark's Legoland and Tivoli, France's Disneyland Paris, Vulcania, and Futuroscope, Germany's Phantasialand, Italy's Gardaland, and Spain's Port Aventura and Terra Mitica. The Netherlands' De Efteling is modernizing its facilities, but most European countries have far fewer parks than the United States.
The UK features several "pleasure beaches" and "worlds of adventure," yet proposed parks, such as a Dracula-themed one in Romania, often fall victim to bureaucracy and local opposition. Europe, both new and old, lags in theme park entrepreneurship.
Europe's theme park industry remains underdeveloped compared to the US. The continent has fewer parks per capita, with lower visitor numbers and revenue?"roughly a third of the US market. Only 20 major European attractions draw over a million visitors yearly.
European companies also struggle with marketing and public engagement. Venture capital is scarce and often wasted on non-productive costs. Management frequently lacks experience and stability.
Contrast this with Asia, where theme parks are booming. Japan has Disney World and Tokyo DisneySea, and Disney plans to launch a major franchise in Hong Kong. Universal Studios opened in Osaka and is exploring opportunities in China. Countries across Asia, from Indonesia to Vietnam, are joining the trend.
Despite Europe's higher purchasing power, American interest in European theme parks remains tepid. Theme parks create jobs and stimulate local economies, benefiting suppliers, marketers, food vendors, and entertainers. They also generate additional revenue through branded merchandise ranging from toys to clothing.
Globally, destination travel is a growing sector. The International Association of Amusement Parks and Attractions reports that park attendance increased by 25% from 1991 to 2001, reaching 319 million, with revenues rising by 50% to nearly $10 billion annually. Parks' ability to weather geopolitical unrest, like the Gulf War or 9/11, underscores their appeal.
EuroDisney's initial financial struggles discouraged investment in European theme parks. Still, Disney's Paris location is now thriving, with plans to invest $540 million in Walt Disney Studios, expected to boost visitor numbers.
Six Flags also sees success in Europe with operations in Mexico and European sites, including former Walibi Parks and Movie World locations. These ventures account for 15% of its sales, showing the potential for growth in the region.
However, Europe often prefers traditional culture over American entertainment imports, a stance particularly emphasized by the French. While there are success stories, the continent's theme park landscape remains cautious and reserved.
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