Consumers prefer zoos and aquariums with larger enclosures and botanical gardens that sustain biodiversity.
Melbourne, Australia (PRWEB) September 17, 2014
Over the past five years, the performance of the operators in the Zoological and Botanical Gardens industry in Australia has been influenced by increasing attendance and declining government funding for environmental heritage. Increasing domestic and international tourism and higher discretionary incomes have supported industry expansion, while a greater range of recreational activities outside the industry has intensified competition for zoos, aquariums and botanical gardens. New attractions at industry facilities, like the birth of an Asian elephant at Melbourne Zoo, have led to a greater percentage of the population visiting zoos and botanical gardens. “However, higher attendances have been somewhat offset by declining government grants,” according to IBISWorld industry analyst Jem Anning. As a result, industry revenue is estimated to increase at an annualised 0.4% over the five years through 2014-15, to total $715.3 million. This includes a pick-up in revenue of 1.9% over 2014-15 due to government funding towards capital works.
The Zoological and Botanical Gardens industry is in the mature stage of its life cycle and industry operators need to regularly develop new facilities, exhibitions and attractions to encourage repeat visits. Due to increased environmental awareness, consumers are preferring zoos and aquariums with larger enclosures and botanical gardens that sustain biodiversity, and “this is putting upward pressure on operating costs,” says Anning. Over the past five years, profit is expected to have increased as unprofitable establishments have exited the industry and larger operators have improved their cost-effectiveness. The industry has a medium level of market share concentration. Major players include Merlin Entertainments (Australia) Pty Ltd, Zoological Parks Board of New South Wales, Zoological Parks and Gardens Board, and Royal Botanic Gardens and Domain Trust.
A high percentage of the domestic population already visits zoos, aquariums and botanical gardens. Therefore, growth in the number of international visitors to Australia greatly affects the industry's growth potential. International travel to Australia has increased over the past five years and is expected to continue to rise over the next five years, providing the industry with an opportunity to grow. Government grants are expected to increase at the beginning of the next five years due to already scheduled capital works, but taper off towards the end of the period due to government budgetary constraints and changing priorities. As a result, industry operators will need to increase private sponsorship to cover operating costs.
For more information, visit IBISWorld’s Zoological and Botanical Gardens industry in Australia report page.
This industry includes the operation of zoos, aquariums and botanical gardens.
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