 "Amusement parks to attract Rs 17K cr investments over 5 years, says report")
The Indian amusement park segment is valued at $400 million (about Rs 2,500 crore), compared to the $25 billion global industry. "With rising income levels, increased domestic tourism and rise in discretionary spending, we expect the amusement park culture to pick up significantly as an alternative source of entertainment," the report says.
The five-year growth curve is expected to be driven by new park development and favourable demographics. In comparison, the global amusement-park industry is estimated to touch $ 32 billion by FY17, a 9% CAGR.
India has 150 amusement parks for a population of 1.21 billion people. Total annual footfalls are about 50 million; by way of comparison, the US has 400 amusement parks for a population of 319 million. Footfalls in India are expected to register a 10-15 per cent (CAGR) and are likely to touch around 75-80 million in the next couple of years.
Investments worth Rs 17,000 crore have been planned for 12 major projects over the next 3-4 years (see Table), the report claims. "These new parks, along with those in operation, will be major drivers of footfalls, expected to grow 10-15 per cent to 75 million -80 million in the next couple of years," it said.
In India, the lion's share of revenue - about 75-80% - comes from ticket sales; the proportion of revenue from sale of food and beverages (F&B), merchandise and accommodation are minor. On the contrary, in global parks, nearly 60% of revenue comes from entry fees, and the remaining 40% from F&B, merchandise, accommodation and others.
The urban population of India is expected to increase from 31% of the total in 2010 to 35% by 2020, leading to an increase in discretionary spending and consumer services, the report claims. "India has a rapidly-growing middle class, with higher disposable incomes and willingness to spend on leisure. About 40 per cent of India's population is below 20-25 years, suggesting an immense base of potential customers for amusement parks," the report noted.
There are over 800 amusement parks worldwide with annual attendance of over 700 millon visitors.
Amusement Parks to attract Rs 17,000 cr investment in next 3-4 years
| Project | Location | Promoter/JV | Estimated Investment (Rs crore) |
| Sea World | Sindhudurg, Maharashtra | Proposed by GoM to be undertaken on PPP basis, parties yet to be decided | 500-510 |
| Theme Park | Nagpur, Maharashtra | Landmark Entertainment | 1500 |
| MGM Lavasa, Hollywood Theme Park | Lavasa, Maharashtra | MGM – Lavasa (work still to begin) | 450 |
| Spaceworld theme park | Lavasa, Maharashtra | Space Investment Co. – Lavasa (work still to begin) | 400 |
| Wonderla | Hyderabad, Andhra Pradesh | Wonderla Holidays | 250 |
| Wonderla | Chennai, Tamil Nadu | Wonderla Holidays | 300 |
| Appu Ghar | Gurgaon, Haryana | International Amusements | 400 |
| Surat theme park | Surat, Gujarat | Atlanta (work still to begin) | 9500-10,000 |
| Krishna Lila theme park | Bengaluru, Karnataka | ISKCON | 350 |
| Jaipur Mega-tourism city | Jaipur, Rajasthan | International Amusements | 2500 |
| Naya Raipur amusement park | Naya Raipur, Chattisgarh | Proposed by NRDA on PPP basis; parties yet to be decided | 23 |
| Adventure Island and MetroWalk | Rohini, Delhi | 50: 50 JV of International Amusement and Unitech | 1000-1100 |
Source: Anand Rathi Research