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Amusement Parks in the US Industry Market Research Report Now Available from IBISWorld   By PRWEB

Los Angeles, CA (PRWEB) January 18, 2013

In 2009, major Amusement Parks industry franchises changed ownership faster than customers could go through turnstiles. As a result of the recession, industry revenue declined 5.5%, while attendance experienced a substantial drop. The industry began its recovery in 2010 and 2011, with revenue growing 5.2% and 3.6%, respectively. According to IBISWorld industry analyst Nima Samadi, the industrys revenue is estimated to grow at an annualized rate of 1.8% over the five years to 2012, including a 2.9% increase to $13.0 billion in 2012 alone.
The state of the economy and travel-related trends are the main factors driving the Amusement Parks industry, says Samadi. In 2009, the decline of the domestic economy and increase in unemployment forced consumers to be more selective about how they spent their disposable income. As a result, consumer spending declined 1.9% and people were less likely to spend money on recreational activities and luxuries like visiting amusement parks. As the recession deepened and unemployment rose, the industry also felt the effect of falling travel rates. In 2009, 5.2% fewer people visited the United States than in 2008. This decline particularly hurt destination theme parks, which tend to rely heavily on foreign tourists. With the economy improving over the course of 2010 and 2011, consumer spending grew 1.8% and 2.5%, respectively; international arrivals jumped 8.7% and 4.4%, respectively; and domestic travel rose a respective 1.9% and 1.4%, resulting in larger numbers of consumers visiting theme parks. The trend has continued through 2012, with consumer spending expected to grow 1.9%, international arrivals expected to increase 6.1% and domestic trips expected to rise 1.8%.
IBISWorld expects that in 2012, the top players in the industry will include the Walt Disney Company, Universal Parks & Resorts, SeaWorld Parks & Entertainment, Cedar Fair LP and Six Flags Inc. Industry concentration increased when Cedar Fair Inc. acquired Paramount Parks from CBS for $1.2 billion in 2006. IBISWorld expects industry concentration will increase gradually over the medium term due to continued consolidation through acquisitions. The industry operates in a low-growth market with high market saturation. Because of this factor, operators must continually invest in rides and displays to maintain consumer interest and attract repeat visitors. In response to increasing competition and consolidation among major players, the number of industry enterprises has declined at an average rate of 2.0% per year to 457 in 2012. To combat diminishing domestic opportunities, major operators are expanding internationally, including into fast-growing economies such as China and Dubai. Revenue is forecast to grow during the next five years as the economy recovers, travel spending increases and operators expand internationally. For more information, visit IBISWorlds Amusement Parks in the US industry report page.

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