Amusement
Parks and Entertainment Services in India
AMUSEMENT PARKS AND ENTERTAINMENT
SERVICES
- The entertainment business is still at an early stage
of development in India, yet industry sales soared by an average 14% per
year since 2000, generating revenue of INR112 billion in 2010.
- Cultural attitudes within India are changing, and local
amusement parks are experiencing a boom in demand for their services. The
increasing incidence of Cable TV is exposing the population to a wider
range of recreational pursuits. The idea of an annual family holiday to
the home village is being overtaken by more frequent weekend visits to
recreation facilities within and around the cities.
- The amusement park category is the largest revenue
earner within Indian entertainment, generating sales of INR41 billion,
which by the end of 2010, was equal to 36% of all industry turnover. The
sector is developing throughout India, but the major projects are planned
in the metropolitan cities, their suburbs and other major cities in
western and northern India. The major cities in southern states like
Hyderabad, Bangalore, Mysore, Cochin and Tiruvananthapuram are also
showing increased activity. However, projects in eastern India are limited
to Kolkata in West Bengal and Bhubneshwar in Orissa.
- Most of the existing and planned or under-construction
amusement centres are being developed by Indian entrepreneurs using
amusement equipment available off-the-shelf in the US and Europe.
- Film-based theme parks are becoming the next big trend
in entertainment. A tried and tested formula in Hollywood, many foreign
film studios such as Disney, Universal and Paramount have long since
capitalised on film-based amusement parks. Disneyland already has a
presence across the US and Hong Kong and Universal Studios too has theme
parks in Orlando, Hollywood, Japan and Spain. The makers of Harry Potter also
opened The Wizarding World of Harry Potter, a mini-park inside Universal’s
Islands of Adventure theme park in the US in 2010. Now many Indian
producers are considering setting up amusement parks around their film
sets to attract tourists as well as make some good money.
- A few Hollywood studios are eyeing India as a
prospective destination in which to set up theme parks over the first
three years of the forecast period. However, the entry of foreign studios
depends on the incentives and benefits doled out by the government. Land
acquisition is the key problem, as an amusement park typically requires
10-12 acres of prime property and a locale that is well connected.
- The largest entertainment parks in India include Essel
World, Veegaland Park, Water Kingdom, Ocean Park, Fun ‘n’ Food Village,
Adventure Islands, Gujarat Science City, Platinum Resorts and others.
Essel World is India's answer to Disney Land. It is the largest amusement
park for children, spread over a sprawling 64 acres, at Gorai, which is
one hour from Goregaon Mumbai. It offers more than 45 rides and games.
Meanwhile, the Water Kingdom is said to be the largest of its kind in
Asia.
- There are a number of travel agencies which operate
daily package tours to Essel World and Water Kingdom which includes
transport, entry charges and all rides, with food costs optional. The
entrance fee normally includes a fixed number of rides, which include the
standard roller coaster and adventure themes, plus a water world section
for children.
- Organisation and promotion of arts events is another
significant industry category, stably accounting for around 30% of all
industry revenue during the review period. This is also the major
business-to-business revenue earner, as Indian theatre and musical
companies are increasingly outsourcing event promotion activities. By
2010, corporate clients accounted for 63% of all industry revenue, after
growing by 20% per year in value terms since 2000.
- Given the surge in India's middle class, the amusement
park and entertainment industry of the Indian economy holds out promise
for investors, both domestic and foreign. Global leaders in entertainment
parks and attractions such as Universal Studios, Disney, Sony and Ripley
Entertainment are mulling over investments of billions of dollars in India
considering the vast potential in this region.
- The current size of the consumer group for the
amusement park and entertainment services industry is estimated at 25-30
million. This reflects a middle upper class with a monthly disposable
income in excess of INR4, 800. However, with a population of 1 billion,
30% of which is under 20 years, and economic growth set to continue at 6%
per annum, the number of consumers can only increase. Revenue generated by
the local entertainment industry is therefore projected to grow further,
by 16% per annum over the forecast period, to reach INR278 billion by
2016.
