Theme Park Challenges.

Dear Mr. Theme Park,

What are the biggest challenges that parks and leisure attraction operators face today and how have these changed over time?

From:  Carey in Texas

Dear Carey:

As progress marches on and we see the continuing proliferation of parks and attractions, yes, there are challenges that we face very single day, week, month, and year.  

One of the biggest challenges is competition.  Look at Orlando, Disney, and Universal slugging it out as it relates to attracting the guests.  New rides and attractions at levels of sophistication we have never seen before in our industry are being introduced every year.  Just look at the impact Harry Potter has had on Universal Studios and their attendance and revenues.  Their increases are astronomical and continue to grow.  Disney expanded Fantasyland over a several-year period and saw phenomenal growth in the same categories.  During the next several years, Universal Studios will introduce the new King Kong attraction (Skull Island:  Reign of Kong), Fast and Furious attraction, a new waterpark and new hotels, and Disney is going to present the new Star Wars Experience, Avatar and a Toy Story Land.  

All of these advancements will cost tens to hundreds of millions of dollars.  So, competition and capital spending, or “keeping up with the Joneses”, are very big challenges for the industry.

In addition to this, labor today is a huge problem for the industry. The regional parks rely on high school aged or college students for workers.  In the U.S.A., schools continue to release students later each summer and they are going back into session earlier each year in many districts. This cuts the labor force down and impacts a park’s operating schedule, thus closing some parks on a daily basis well before Labor Day (which used to be the benchmark for closing daily operations in a park).

Another major challenge is the ever-changing technology and the rate at which it continues to advance.  With the pace that technology is changing, it pushes parks to constantly review their maintenance procedures and programs, while improving their levels of sophistication.  This may not seem like a lot to the unknowing guest, but it has inherent expense associated with these advancements in hardware, software, and personnel – a necessary challenge to meet

The last item I will address is security.  The crazy world we live in today dictates that all parks and attractions heavily review their security programs.  Front gates, service entrances, personnel thoroughfares – all must be reviewed to meet the security challenges that in general face the world today.  We must continue to do everything possible to maintain guest and employee safety.

Carey, the industry we operate is a great place to work.  I have been in the industry now for 56 years.  Yes, as an industry, we face challenges.  We always have and always will.  Every industry has its own set of issues and programs with which to interface.  Our industry is a wholesome industry and, as I have said many times:  “We work in a great industry.  We do not pollute the skies and we don’t contaminate the streams.  At the end of the day, what we really do is put smiles on people’s faces.”  Not a bad place to work.

Thanks again for the question and don't forget to get your season pass for next year!  It's the best time to purchase.