Professional Documents
Culture Documents
B
uilding a theme
d. Top rides cost
the faint-hearte
00 million, easily
upwards of $1 soaring
nstruction costs
sending park co rs . Bu t th ats just the
of do lla
into the billions s als o costs
ese structure
start. Running th g en er gy costs and
e-waterin
billions, with ey er ation and
ff required for op
thousands of sta de s of gr owth,
t after deca
maintenance. Bu t ha s alm os t be come
marke
the theme park ict in g that
perts are pred
saturated, and ex Fi nd in g in cr easingly
will slow.
guest spending ha s pu t
ds of financing
innovative metho to th e te st.
rs creativity
theme park owne rk industry.
Profits ar e th in in the theme pa
in about
generally bring
Admission sales th fo od and
venues, wi
55% of a parks re ou nd 20 % , games and
ising ar
beverage compr ur ce s close
% and other so
merchandise 15 m od el is ov erhead-
business
to 10%. But the ve esnu
that admission re
heavy, meaning e. M erchandise
the bottom lin
provide little to ake up the
and beverage m
and costly food ires the
ofit, but this requ
bulk of a parks pr s als o th e start of
rning. It
turnstiles to be tu us cy cle at th e heart of
a vic io
what seems to be
the business. at guests
es helps ensure th
Building new rid of th e capital
ck, but the bulk
keep coming ba fro m pr ofi ts
ction comes
to fund constru di ng . Pa rk s are forced
est sp en
brought in by gu spending
to ot he r profit sources as
to lo ok
wh at is se t to happen.
exactly
slows, and this is
study by
A recent annual at
se Co opers predicts th
PriceWaterhou U S th em e pa rks will
ng at
consumer spendi $1 3.4 billion
billion in 2005 to
rise from $11.7 gr ow th rate of just
an annual
in 2010, yielding ious years
of 3% on the prev
3.6%a decline th e gi an ts at the
dustry slows,
result. As the in ver, an d the
est shortfall to co
top have the bigg D isn ey .
e any bigger than
players dont com de had
th em e parks worldwi
Disneys 11 nstituting
llion in 2005, co
revenues of $9 bi an d a quarter of
its total sales
almost a third of ta l, D isn eys parks
ofit. In to
its $4.6 billion pr es ts in
nd 100 million gu
welcomed arou D isn ey
eraging this,
2005, and by lev
103
Business//
Theme Park Sponsorship
105