A rising number of international visitors will aid domestic tourism, including water parks.
Los Angeles, California (PRWEB) September 11, 2013
The Water Parks industry has made a big splash during the past five years. After a recession-induced slip in 2009 when revenue fell 5.8%, the industry has made an impressive and sustained recovery. “Driven by encouraging growth in both domestic and international tourist numbers, the industry has grown at a faster rate than the overall economy since the recession,” according to IBISWorld industry analyst Andy Brennan. Increased consumer spending, which is estimated to rise 1.3% per year on average during the five years to 2013, has also played into the industry's growth as consumers have splurged on discretionary items like water park tickets. In the five years to 2013, industry revenue is expected to grow an annualized 2.5%, including impressive growth of 5.7% in 2013, reaching $4.3 billion.
The Water Park industry's biggest parks are owned and operated by global players such as SeaWorld Entertainment Inc. and The Walt Disney Company. According to the Themed Entertainment Association, the top 20 water parks in the United States recorded attendance of 15.4 million people in 2012, up 2.2% from 2011. “These destination parks attract visitors from out-of-state and overseas who sometimes make the trip for the specific purpose of visiting a water park,” says Brennan. Disney and SeaWorld's parks alone attract more than 5.0 million visitors each year. Outside of these major operators, the industry consists of a wide range of local water parks run by local municipalities and independent firms. These smaller water parks serve the local area and tend to be less profitable than major parks due to their limited economies of scale.
The Water Parks industry exhibits a moderate level of market share concentration. Large-scale water parks are able to attract a significant number of visitors because of the variety of activities they provide alongside their water parks. While there are more than 550 enterprises operating in this industry in 2013, the majority of these water parks are small regional locations that serve local markets. Major players include SeaWorld Parks & Entertainment, The Walt Disney Company, Universal Parks & Resorts and Six Flags Inc.
The Water Parks industry's recent growth is set to continue during the next five years. Growing consumer confidence in the United States, which will boost discretionary spending, will help the domestic tourism sector. Additionally, the number of international tourists visiting the United States is expected to grow during the five years to 2018. In an increasingly saturated market, water park operators will try to bring in revenue year-round through indoor attractions and winter shows, decreasing the reliance on the peak summer period. IBISWorld expects industry revenue to rise during the five years to 2018.
For more information, visit IBISWorld’s Water Parks in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes amusement parks that feature waterplay areas, such as waterslides, splash pads, spraygrounds (water playgrounds), lazy rivers or other recreational bathing, swimming and barefooting environments. These parks may be indoor, outdoor or a combination of both.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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