Friday, August 21, 2015

Location, Location, Location

From Linda K, Dominican Republic:
Mr. Theme Park, I'm thinking of developing a theme park in my country, but need to decide where to develop the park and also need to find the land.  What are the most important considerations when deciding where to locate a theme park?  Are there examples of parks that have been successful in selecting a site or failed because of their site?

Dear Linda K., you have asked a very important question.  Many theme park developers acquire land without doing the due diligence required.  They may have gotten a great price on the land, but that doesn’t mean the location will be good for any type of development – namely building a theme park.  One of the most important things my company, ITPS, does when we complete a feasibility study is to conduct a site analysis and look at the important criteria that might impact the theme park’s operation.  It is hard to limit these important considerations to just a few; however, here are a few of what I consider to be the most critical to address when you are deciding where to locate your theme park.

  1. Your location should be close to other demand generators.  In other words, make sure there are other businesses and activities nearby that help to bring people to the area already.
  2. Your location must be accessible.  If people have to twist and turn, and go out of their way to find you, they are less likely to make the effort.
  3. Your location should offer good topography.  The land should be mainly flat with perhaps some gently rolling hills or else designing and building a theme park could become very challenging.
  4. Your location must offer adequate utilities.  Infrastructure must be in place or else be available, or costs to develop could skyrocket.
  5. Your location should be visible.  While you do not have to be “on the 50 yard line”, you do want to be located where passersby can see your park and be enticed to visit.
  6. Your location should be a proper distance from existing parks or existing competition.  The last thing you want to do is try to compete head-on with another similar attraction.

Hard Rock Park - Myrtle Beach, South Carolina
All of the above takes very careful study.  Just to give you a couple of examples, I would refer you to the former Hard Rock Park here in the USA.  It was located in Myrtle Beach, South Carolina.  That park lasted only one season before it closed.  In addition to other factors, one of the key reasons the park failed was its location.  It was not convenient to what we call the main tourist area, and so potential guests who were already there had to basically make going to the park a day’s outing because its location was not convenient.  The location chosen was adjacent to industrial buildings and the entire environment did not lend itself well to allowing visitors to abstract into a fantasy environment.  Visibility was poor and signage was inadequate, and many guests drove right by the entrance unaware that they had arrived.  

Kings Island - outside Cincinnati, Ohio
On the other hand, you may have heard of Kings Island – a major theme park just outside of Cincinnati, Ohio, in the USA.  It welcomes over 3 million visitors annually.  When we built Kings Island back in 1972, our location was in the middle of farmlands.  But, we were adjacent to a major interstate which offered great visibility.  There were two major highway exits that gave us great and easy accessibility.  The topography of our site was relatively flat and allowed for easy master planning.  Our location was in a “triangle” of major markets consisting of the cities of Cincinnati, Columbus and Indianapolis.  There was – and still is – no major competitor.

So, hopefully, you can see the importance of selecting the proper site and why I think your question is so critical.  When undertaking the planning of a theme park, the first and most important step is to hire a company who can properly produce a feasibility study and who has familiarity with our industry.  This is one of the hallmark services that our company provides, so let us know if we can help you!  Best of luck as you move forward!


Mr. Theme Park - Dennis Speigel

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