Melbourne, Australia (PRWEB) October 22, 2012
The Amusement Parks and Arcades industry in Australia is on a roller-coaster ride influenced by the challenging economic circumstances, the Queensland floods and heavy discounting in the past five years. Consumer spending is under pressure from high housing costs, while competition from substitute entertainment industries is putting pressure on operators in this industry and reducing margins and profit. The industry is sensitive to factors that cause changes to domestic entertainment spending and international visitor arrivals. According to IBISWorld Industry analyst Alen Allday, “industry demand has weakened in the past few years as household disposable income growth has taken some significant blows.” In addition, Australia's loss of its strategic focus in the international tourism market, the high Australian dollar and increasing global competition are leading to subdued growth in international arrivals and loss of market share.
Industry revenue has declined in most of the five years through 2012-13 due to fewer visitors and lower in-park expenditure on high-margin food, beverages and souvenirs. However, operators that have had the foresight to continue to invest in new products and rides will reap the benefits of significant financial returns, against their laggard competitors, as economic growth steadies in 2012-13 and 2013-14. IBISWorld estimates that the industry will generate revenue of $605.2 million in 2012-13, up 1.1% from the previous year as amusement park operators discount ticket prices to attract more visitors. Allday adds, “industry revenue is estimated to decrease by an annualised 4.0% in the five years through 2012-13 due to the difficult economic environment and adverse weather conditions.” Growth is expected to strengthen in the next five years.
The Amusement Parks and Arcades industry in Australia has a moderate level of market share concentration. Village Roadshow Limited is the dominant player due to its ownership of Seaworld, Movie World, Wet 'n' Wild theme parks, and Intencity amusement centres. The other major player is Ardent Leisure (Dreamworld and WhiteWater World). Excluding the two largest companies, the majority of operators are relatively small in size, and only account for a small proportion of industry revenue. In the amusement and theme park component of the industry there is a very high concentration level, while centration is low for the amusement arcade segment. IBISWorld estimates that the industry concentration level is increasing. Village Roadshow Limited is expected to continue to acquire other operators over the next five years in order to expand revenue and profit by aggressively taking advantage of economies of scale available. This includes areas such as promotion, advertising, overheads and general management costs.
For more information, visit IBISWorld’s Amusement Parks and Arcades report in Australia industry page.
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IBISWorld industry Report Key Topics
Amusement or theme parks offer attractions such as mechanical rides, water slides, games, shows and theme exhibits, and also lease venue space for other businesses to operate attractions or provide services (such as selling food) on a concession basis. Amusement arcades, centres or parlours are permanently located within a venue and offer many coin-operated games, such as pinball. Similar firms operate a limited number of amusement machines and rides in shopping centres and fairgrounds.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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