Biggest theme parks grow, but middle-class squeezed
The big are getting bigger and everyone else is tightening their belts -- even when it comes to Mickey Mouse, Harry Potter and Shamu, according to an annual report issued by the theme-park industry.
The nine biggest theme parks in the United States -- all owned by Disney (DIS) or Universal (CMCSA) -- saw attendance rise by an average of 4.2 percent in 2014, while the next 11 biggest parks saw a 2.8 percent decline in visitors, according to the report released Wednesday by the Themed Entertainment Association and economic consultants at AECOM. (ACM)
The report notes that U.S. theme parks are facing long-term challenges as the demographics of their visitors change and the prices at the parks rise.
There is a "continued stagnation of middle-class incomes, which may already be leading to a bifurcation of the market. This raises questions about the sustainability of recent ticket-price increases as well as the positioning of some parks relative to the characteristics of the residents and tourists to major markets," the report warns.
In February, Walt Disney World in Florida, the largest theme park in the world with 19.3 million visitors in 2014, raised its ticket price to $105 plus tax. It was the first of the Disney parks to pass the $100 threshold.
Another key trend for the industry is the need to master technology and acquire rights to the most popular intellectual properties (IP,) such as Universal Studios has done with its wildly popular Wizarding World of Harry Potter. "We see that the sooner you can get IP to move from screen to a physical environment, the sooner you reap the rewards and the larger those rewards may be," the report states. "It will be interesting to see what happens next with pending openings of other such attractions, particularly Avatar at Disney's Animal Kingdom."
Based on attendance, the report ranked Disney World No. 1 in the United States, followed by Disneyland; Epcot; Disney's Animal Kingdom; Disney's Hollywood Studios; Disney's California Adventure; Universal Studios; Island of Adventure; Universal Studios Hollywood; and Seaworld Florida. (SEAS.)