Positive Impact of Global Theme Parks for Hotels Around the World
You don’t have to take a hotel owner to Disneyland to make him happy. All you have to do is tell him that a brand new theme park is being built two blocks away from his real estate investment. Hotels, motels and resorts all benefit greatly with an increase in business when one of these destination attractions is located near their property.
A hotel manager can further boost business by making reciprocal arrangements with the nearby attraction. He or she can agree to distribute promotional material and maybe even offer a discounted ticket and room combined rate package that will help increase their occupancy rate.
According to a recent study by Global Industry Analysts, Inc., the Global theme park market is expected to generate revenues of 31.8 billion US Dollars by the year 2017. Over the next five years, projections are for strong growth around the world in this entertainment and tourist driven category.
Real growth will come from developing and quickly emerging countries around the world. Places like China, India and most of Asia have become economic powers and the population is becoming more middle class. The demand for such entertainment options is there and instead of having to travel long distances to more developed lands to enjoy the rides and amusements, people will be able to spend some of their disposable income nearer to home.
In mature markets like the United States and much of Europe, the growth rate for theme parks is expected to remain relatively stagnant. Part of that is due to the fact that these countries have become saturates with such entertainment options and part of it is due to a slowdown in the local economies. With less money to spend, it is hard to take a family of four on a vacation to a place where the admission per person can cost close to $100 per day. Other options like a trip to the beach or a few days by a lake in the mountains are more affordable options.
China and India, with populations of more than a billion people are also two of the countries that have the fewest theme parks per capita in the world. While part of the reason for the sparseness of locations may be attributed to traditional customs and values, the biggest reason has been that such parks have been economically unfeasible. With the increased westernization of Asia, Africa and South America, demand will only grow. People will have more disposable income to spend on entertainment and leisure activities.
Hotel management companies are well aware of this trend that will directly affect their industry. They may benefit by building new properties near or even inside of these huge tourist draws. People need a place to stay when they visit and will have more money to spend on accommodations. Today’s major players in this market segment will also lead the way in new development for the future.