Amusement parks seek double growth in 3 yrs

Sector demands industry status from the government.

The amusement park sector, which is poised to double its size from present Rs 3,000 crore over the next three years, wants more attention from both the central and state governments for its development.

"In the next three years, the amusement park industry is going to touch the Rs 6,000-crore mark. The pace with which it is growing for the last decade, we expect that by 2010 we will have more than 200 parks all over the country," said Rajen Shah, president, Indian Association of Amusement Parks and Industries (IAAPI).

He further said the government should treat the sector as the social infrastructure industry, as it is fuelling growth in the tourism industry "" both internationally and at the domestic level.

The association has also delivered its presentations to the central government, but its members are not satisfied with the government's response. "Amusement parks are a niche market, which is growing at a fast pace in our country. But there is still a huge gap between what we see (in terms of government policies) in the west and in India," Shah added.

"First, the amusement park sector must be recognised as an industry. It comes under Shops and Establishment Act. We want it should at least be recognised as a part of the tourism industry," said IAAPI Secretary General Arijit Sengupta, who is also CEO-cum-director of Nicco Park in Kolkata.

Sengupta demanded that the government should reduce the import duty, which at present is 40 per cent. "Besides this (import duty), amusement parks also have to pay heavy entertainment tax, and rates differ from state to state. In Maharashtra, it is 10 per cent for amusement parks and 15 per cent for water parks. In West Bengal, it is 20 per cent. These parks should be exempted from taxes," he added.

The sixth annual trade show of the IAAPI registered an unprecedented rise in the number of foreign manufacturers. Countries like China, Italy, Japan, Belgium, Argentina and Singapore took part at the show, evincing keen interest in India.

"The number of foreign participants this year has gone up 130 per cent, which is a sign of growth potential of amusement parks in India," Shah said. The number of participants was 120, and we expect around 170 participants in our next show," he added. The three-day event concluded on February 24.

The show comprised a training programme that focused on investment in the sector, innovative marketing and safety issues.

"The interactive and participatory entertainment in the sector is one of the main reasons behind the rapid growth of amusement parks in the country," Sengupta said.

Manufacturers from Argentina and China, however, said Indian amusement park owners probably cannot afford to their products at the given prices. "They are interested in our products, but as the prices are high, no deals could be struck," they said.