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Theme Park Tourism
Brendan Richard
University of Central Florida, Orlando, USA
Email Address: Brendan.Richard@ucf.edu
Kelly Kaak
University of Central Florida, Orlando, USA
Email Address: Kelly.Kaak@ucf.edu
Marissa Orlowski
University of Central Florida, Orlando, USA
Email Address: Marissa.Orlowski@ucf.edu
Recommended Citation
Richard, B., Kaak, K., & Orlowski, M. (2017). Theme Park Tourism. In The SAGE International
Encyclopedia of Travel and Tourism (pp. 1218-1221). New York, NY: Sage.
The final publication is available at Sage via
http://sk.sagepub.com/Reference/the-sage-international-encyclopedia-of-travel-and-
tourism/i11019.xml
Theme Park Tourism 1
Theme Park Tourism
Theme parks are a part of the greater attractions industry. Theme parks are large, mostly
outdoor, entertainment enterprises that trace their origins back to 19th century pleasure gardens
that, over time, converted to amusement parks with a mix of entertainment including rides,
shows, games, and food and beverage offerings. Beginning in the 1950s with the opening of
Walt Disney’s Disneyland, the theme park sector has expanded throughout the global economy.
Today, the annual attendance at the world’s largest and most attended theme parks is 323.4
million; it is likely that a comparable level of attendance is achieved by the second tier of theme
parks throughout the world.
Global distribution of market share (in terms of attendance) of the industry is 42% North
American, 18% European, 36% Asian and 4% Latin American. Year-over-year growth is
minimal (approximately increasing at the same low rate as growth in gross domestic product) in
the mature markets of North America and Europe. Not surprisingly, annual theme park
attendance growth is most significant in Asia (+ 7.5% per year) and Latin America (+ 3.8% per
year). The largest global theme park operators are concentrated among a few companies that
control multiple theme park operations throughout the world: Walt Disney Parks & Resorts
(representing 35% of global market share); Merlin Entertainment Group (16% of global market
share); and Universal Parks & Resort (10% of global market share). Smaller regional operators
such as OCT Parks China, Six Flags Inc. and Parques Reunidos each represent an additional 7%
of global market share.
The most attended theme park in the world in 2013 was the Magic Kingdom at Walt Disney
World in Florida, USA with a total of 18.6 million guests. Among the global 25-most-attended
theme parks, nine were operated by Walt Disney Parks & Resorts, four were Universal Studios
parks, and two were SeaWorld marine animal parks. The geographical locations of the 25-most-
attended parks were dispersed throughout the United States, Asia and Europe: eleven were in the
USA; five were in Japan; two each were in France, South Korea and Hong Kong; and one each
were in Germany, Denmark and the Netherlands.
Origins
Theme parks are both a continuation and a refinement of the outdoor entertainment product
known as the amusement park. In the 1800s, urban dwellers would congregate on the weekends
in gardens and parks to listen to bands, dance, picnic, and drink beer. Over time, to attract and
entertain guests these venues began to add vaudeville acts and other diversions. World’s Fairs of
this time began to introduce mechanical rides to the public and early amusement parks were
quick to incorporate these into their entertainment offerings. Modern, wooden rollercoasters
were first opened in the 1880s at parks in Coney Island in New York City. By the time of the
postwar boom of the 1920s, traditional amusement parks such as Steeplechase, Luna Park, and
Theme Park Tourism 2
Dreamland at Coney Island had become international sensations and had inspired imitators
throughout major U.S. and European cities.
The financial Depression of the 1930s eliminated the discretionary income of many families and
visits to amusement parks waned. Many parks closed or limped along with few capital
improvements or adequate upkeep. The parks’ declining conditions worsened due to materials
rationing during World War II and many of the once great parks were more renowned as
hangouts for an unsavory crowd than as a location for family recreation. At this time the
American animator Walt Disney began taking his daughters on visits to the local amusement
parks. He was disappointed in the quality of the attractions and the level of service his family
received. He also was flustered that the rides available prevented him from sharing the
experience with his daughters; he was forced to sit on a park bench and watch as they rode. This
inspired him to envision a better park; a park that was clean, well-maintained, that told a story
and enabled parents and children to engage in an actual experience together.
As the owner of a Hollywood movie studio and various animated content, Walt incorporated his
intellectual properties with the new park he was planning. This new venture met with numerous
reservations among potential financial backers and executives within his own company, forcing
Walt to invest a considerable amount of his own money in the park venture. Prior to beginning
construction, Walt took his designs to a gathering of contemporary amusement park experts.
They cautioned him that too much space and expense was devoted to “wasteful” landscaping,
themed buildings that produced no revenue, and custom rides that would be expensive to build
and maintain. They were alarmed to see that Walt’s park plan failed to include proven money-
makers such as Ferris wheels, roller coasters, hot dogs or beer. They concluded that he should
stick to making movies. Supposedly Walt was delighted to hear of their doubts; he knew he had
created something new. The park was built in less than a year’s time and opened on July 17,
1955. The park succeeded beyond anyone’s expectations.
Several parks rushed to open in order to capitalize on the spillover effects from Disney’s success.
Some of these early theme parks were traditional amusement parks that hastily adopted themes
(Pacific Ocean Park in Santa Monica, California and Cedar Point in Sandusky, Ohio), others
were themed attractions that expanded their operations to include multiple themed sections
others (Knott’s Berry Farm in Buena Park, California and Cypress Gardens in Winter Haven,
Florida). Many of these early theme parks were short-lived. The first theme park to achieve
success after Disneyland’s opening was Six Flags Over Texas. This park was conceived by
Angus Wynne, a Texas land developer who had visited Disneyland and thought that such an
establishment would be an appropriate addition to a development planned for the North Texas
suburb of Arlington. Unlike many of the prior post-Disneyland developments he did not attempt
to recreate Disneyland in Texas but sought to build a smaller park that served the needs of the
surrounding population versus attracting tourists on vacation. Six Flags Corporation became the
first regional theme park and would pioneer many innovations that became industry standards:
the first exclusive use of pay-one-price admission policies, the first log ride attraction, and the
Theme Park Tourism 3
first run-away-mine train themed rollercoaster attraction. Ultimately, Six Flags became the first
theme park chain, operating a number of regional parks distributed through markets all over
North America. The success of Six Flags was followed by the Success of SeaWorld (San Diego,
California) in 1964. By the mid-1970s, most major markets in the United States were served by
a regional theme park. Additionally, Walt Disney World opened near Orlando, Florida in 1971,
providing a full-service theme park resort destination for the eastern half of the country.
Following the rebuilding of the post-war economies and increases in automobile ownership, the
first modern European theme parks began to appear in the 1970s. In Asia, the first theme parks
were opened in Japan in the 1970s and were joined by parks in South Korea and Hong Kong.
Latin America’s first theme parks opened in Mexico and have since been joined by parks in
Brazil, Chile, Argentina and Columbia.
Definitions & Park Features
The simplest distinction to make among theme parks is to segment them according to their
scope: parks intended as destination theme parks versus regional theme parks. Destination theme
parks typically include surrounding resort infrastructure (hotels, recreational activities,
attractions and themed dining and merchandising hubs) that serve as tourist destinations. The
parks are characterized by elaborate theming, often incorporating content from popular media
franchises (movies, cartoons, television). Most are owned by large corporations and operate on a
year-round basis. The majority of their guests (approximately 90%) are derived from the tourist
sector, meaning that park visitors originate from an area that is at least 50 miles from the park.
Regional theme parks attract the majority of their attendance from the area immediately
surrounding the park; approximately 90% of their guests reside within a three-hour drive of the
park. Regional theme parks operate on a seasonal schedule, approximately 150 days per year.
They are often dominated by their thrill rides and increasingly are operated by chains.
Disneyland Paris is an example of a destination theme park resort, attracting visitors throughout
Europe, while Parc Asterix is an example of a regional theme park serving the local French
population.
However, this distinction still does not define or fully describe what a theme park is. At the very
least, theme parks attempt to create a fantasy atmosphere of another place and time. There will
often be a dominant, overarching theme and several sub-themes that are derived from the main
theme. By definition, theme parks include several distinct sections or “lands.” The theme is
primarily communicated through visual elements as well as architecture, landscaping, costumed
personnel, rides, shows, food services and merchandising.
Other traits commonly associated with the theme park definition include the concept of a pay-
one-price entrance fee, a physical design that seeks to isolate the themed environment from the
real world outside in order to promote the story, an obsessive focus on cleanliness and
maintenance, attendance in excess of one million a year, high levels of investment, enough
Theme Park Tourism 4
diversions to create a visit that lasts five to seven hours, and central management structures
indicative of corporate ownership.
Theme parks are known for their ability to attract families, but the reality is that theme parks
provide a range of activities to appeal to all types of visitors. When asked to describe a theme
park experience, most consumers would be likely to recall rides. Preeminent among rides are
rollercoasters. Rollercoasters are expensive to construct but in high demand among parks and
the guests that visit them. Some theme parks specialize in their collection of thrilling
rollercoasters (for example, Cedar Fair in Ohio and Six Flags Magic Mountain in California).
Rollercoasters tend to be classified based on the materials used in their construction (wood
versus steel) and the ways they move: hyper-coasters reach great heights and high speeds; flying
coasters carry passengers horizontally below or above the rail; inverted coasters carry passengers
with their feet hanging down; vertical coasters feature 90 degree climbs and falls; and indoor
coasters are often elaborately themed. Many of the most iconic theme park rides (Disney’s
Haunted Mansions and Pirates of the Caribbean) qualify as “dark rides.” Described as rides
within enclosed structures that combine movement, film, mechanical animatronics, sound
effects, music, narration, and scenery to produce the ride experience. Most theme parks include
a sampling of dark rides and include dark ride elements within other attraction offerings.
Other in-park rides can include “flat rides,” rides that are based on traditional mechanics (often
centripetal force), utilizing repetitive movements. Flat rides are low cost and can be considered
family-oriented; they include carousels, trabants and scramblers. Thrill rides offer scenic views
of the park and the surrounding landscape and often serve as park landmarks; examples include
Ferris wheels, sky towers and free falls. Transportation rides convey guests among dispersed
stations located throughout the park; for example, train rides, monorails, aerial tramways and
excursion boats. Water rides are popular family-oriented attractions, but often require large
amounts of available space. Flumes, rapids rides and splash rides are all examples of water
rides. Simulator rides seek to recreate a journey or adventure by combining film techniques with
physical movements and special effects.
However, theme parks include a diversity of in-park entertainment that extends beyond rides.
Ski shows, stunts shows, animal shows, musical Broadway-type shows, musicians, magicians,
puppet shows, parades, street performances, character meet & greets, minstrels, acrobats, and
craftsmen demonstrations are all parts of the theme park entertainment lineup. Technical
productions – shows featuring lights, music and color – can include fireworks displays, dancing
fountains, laser light shows, audio-visual film presentations, and even Christmas light displays.
Finally, in-park components include significant and themed food and beverage and merchandise
offerings. Theme park food creates much satisfaction for guests, can be used to extend the
theme, adds to overall park ambiance, and contributes significantly to profits. Theme park
merchandise achieves the same purposes but sales are not due to the ability of the products to
Theme Park Tourism 5
satisfy customers but to provide park guests with the option to commemorate their experience at
the park.
Financial Operations
The main determining factor for a theme park’s location, size, and revenues is the attendance
projection – how many guests will pass through its turnstiles each season. Theme parks are
susceptible to a number of factors that can increase or decrease attendance, and attendance is the
most important determinant of overall success – if attendance is down, revenues from
admissions, food and beverage, merchandise and games will be down. The health of the
economy or a measure of consumer sentiment determines if patrons will choose to spend their
discretionary dollars on a park visit. Economic considerations such as the cost of admission and
the availability and pricing of gasoline and airfares are considered in the guests’ decision making
process. Weather plays a part in influencing day-to-day attendance, while adverse publicity from
a park accident, a reputation for long lines, or a lack of things to do will keep potential guests
from visiting. Marketing efforts and the addition of new rides or attractions can increase
attendance, while external factors such as television, movies, sporting events, video games or the
Internet can compete indirectly for theme park visitors.
Prior satisfaction with the experience at a theme park is an important determinant of repeat
attendance, which represents 30-40% of overall attendance. External factors such as travel
safety, wars, riots and acts of terrorism can slow theme park sales. Lastly, practical
considerations such as school vacation calendars and the demographics of the available market—
family size, age distribution, disposable/discretionary income—all play a part in determining
theme park visitor patterns.
The construction of a theme park represents an investment of millions of dollars. An industry
rule of thumb is to invest at least $100 in construction cost per expected first-year visitor; thus,
an attraction anticipated to attract two million visitors per year demands an initial investment of
$200 million. The addition of theming increases overall construction costs by at least 5% and
can add 20% to the cost of a ride.
The source of revenues and expenses for theme parks varies among operations; nonetheless, the
greatest percentage of gross revenues (approximately 40-60%) comes from the collection of
admission charges. The remainder of revenue comes from in-park spending. The largest
category of in-park spending is for food and beverage sales, followed by merchandise and then
games. Parking and sponsorships can also be a source of revenues for parks. Much effort is
placed on increasing the length of stay in order to increase the amount of in-park spending—the
longer the time spent in a park, the greater will be the per-capita spending. Operating expenses
at the typical park are divided among labor costs (about one-third of total expenses),
maintenance, marketing, insurance, and capital improvements such as new rides and attractions.
Theme Park Tourism 6
Future Directions & Trends
Current global trends in the theme park industry include a greater use of intellectual properties
and international brands throughout the theme park experience. Evidence of this trend is seen in
Universal Studios’ inclusion of Harry Potter themed attractions at its parks in Florida, Japan and
Hollywood, and Disney’s inclusion of Marvel content in attractions at their Asian operations.
Another global trend is the expansion of current stand-alone theme parks into destination resorts
with the addition of themed hotels, additional theme park gates, and supporting retail, dining and
entertainment developments.
All theme parks are working to integrate social media into their marketing efforts and to
incorporate it into the themed experience. Parks are also working to integrate enhanced
technologies to streamline sales, promote interactivity, manage queue line waits, personalize the
customer experience, and mine consumer behavior to increase profits and enhance customer
loyalty.
Market growth in the United States is expected to grow at a rate parallel with the rate of growth
in gross domestic product (approximately +1.8% per year). In other words, the U.S. theme park
market is mature and no notable new parks are being developed. Destination parks in Southern
California and Central Florida will benefit from projected large growth in international visitors to
the U.S., many of whom will include a visit to a theme park in their itineraries. Similar to the
U.S., growth in Europe is not expected to stride forward but will remain steady. Asia is
expecting to see continued development of new parks and growth in attendance at existing parks.
Within the past few years, a Universal Studios park opened in Singapore and a Legoland opened
in Malaysia. The most notable upcoming event in the Asian theme park market will be the 2015
opening of the Disney resort in Shanghai, China. This park has the potential to quickly become
the most visited park in Asia. Latin America is a growing theme park market, yet all of the
current parks in the region are oriented toward the local markets in which they reside. With
growing interest in the theme park product and growing influence throughout the region, it is not
implausible to suggest that a major destination theme park resort will be developed within the
next generation somewhere in Latin America.
See Also: Tourist Attractions; Destination Management, Domestic Tourism
Theme Park Tourism 7
References
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Clavé, Savador Anton (2007). The Global Theme Park Industry. Cambridge, MA: CABI.
Kyriazi, Gary (1976). The Great American Amusement Parks. Secaucus, NJ: Citadel Press.
Milman, A. (1991). The role of theme parks as a leisure activity for local communities. Journal
of Travel Research, 29(3), 11.
Price, H. (1999). Walt’s revolution by the numbers. Orlando, Florida: Ripley Entertainment Inc.
TEA / AECOM. (2014). 2013 Theme index: The global attractions attendance report, Themed
Entertainment Association,
http://www.aecom.com/What+We+Do/Economics/Theme+Index+Report.
Vogel, H.L. (2004). Entertainment industry economics, a guide for financial analysis. New
York: Cambridge University Press.
Weinstein, R. M. (1992). Disneyland and Coney Island: Reflections on the evolution of the
modern amusement park. Journal of Popular Culture, 26(1): 131-164.