May 2017
UAE Theme Park Market Outlook to 2021 Increasing Inflow of Tourists and Development of Multi-Themed Parks to Foster Future Growth
PARKS MENTIONED • Amusement Park • Theme Park • Water Park • Multi-Themed Park
COMPANIES MENTIONED Majid Al Futtaim, Ilyas and Mustafa Galadari(IMG) Group, Landmark Group, Majid Al Futtaim Holdings, DXB Entertainments PJSC, Al Hokair Group
Table of Content
1. Executive Summary Market Size Market Segmentation Customer Profile Market Share of Major Players Future Outlook 2. UAE Theme Park Market 2.1. Market Size By Revenue and Number of Visitors, 2014-2016 2.2. Market Segmentation 2.2.1. By Type (Amusement Park and Water Park), on the basis of Revenue, 2016 2.2.2. By Revenue Streams (Admissions, Food and Beverage, Merchandise and Others), 2016 By Admission (Online, Walk-ins, Tour Operators, and Others) on the basis of Revenue, 2016 3. Customer Profile in the UAE Theme Park Market 4. SWOT Analysis for the UAE Theme Park Market 5. Trends and Developments in the UAE Theme Park Market Technological Advancement in the UAE Theme Parks Multi-Park Tickets and Inclusive Packages Increasing Number of Indoor Theme Parks Inception of Themed Parks to Cater Cultural Diversity 6. Pre-Requisites to Acquire Land in UAE for Theme Park 7. Investment to Set up a Theme Park in UAE 8. Competitive Landscape of Major Players in the UAE Theme Park Market 8.1. Market Share of Investment Groups 8.2. Company Profiles of Major Investment Groups 8.2.1. Miral Asset Management 8.2.2. Ilyas and Mustafa Galadari (IMG) Group 8.2.3. Landmark Group 8.2.4. Majid Al Futtaim Holdings Financial Performance 8.2.5. Al Hokair Group Financial Performance 8.2.6. DXB Entertainment PJSC Financial Performance 8.3. Comparative Analysis of Major Amusement Parks 9. Future Outlook for the UAE Theme Park Market 10. Analyst Recommendation 11. Macro-Economic Factors Impacting the UAE Theme Park Market 11.1. GDP Per Capita in the UAE, 2014-2021 11.2. Number of Tourists in the UAE, 2014-2021 11.3. Urban Population in the UAE, 2014-2021 11.4. Youth Population in UAE, 2014-2021 12. Research Methodology 12.1. Market Definitions 12.2. Abbreviations 12.3. Market Sizing and Modeling Consolidated Research Approach Limitations Disclaimer Contact Us
LIST OF FIGURES
Figure 2-1: UAE Theme Park Market Size on the basis of Revenue in USD Million and Growth Rate in Percentage (%), 2014-2016 Figure 2-2: UAE Theme Park Market Size on the basis of Number of Visitors in Million and Growth Rate in Percentage (%), 2014-2016 Figure 2-3: UAE Theme Park Market Segmentation by Type (Amusement and Water Park) on the basis of Revenue in Percentage (%), 2016 Figure 2-4: UAE Theme Park Market Segmentation by Revenue Streams (Admissions, Food And Beverage, Merchandise And Others) in USD Million, 2016 Figure 2-5: UAE Theme Park Market Segmentation by Admission (Online, Walk-ins, Tour Operators and Others) on the basis of Revenue in Percentage (%), 2016 Figure 3-1: Customer Profile in the UAE Theme Park Market by Gender on the basis of Weightage in Percentage (%), 2016 Figure 3-2: Customer Profile in the UAE Theme Park Market by Age Group on the basis of Weightage in Percentage (%), 2016 Figure 3-3: Customer Profile in the UAE Theme Park Market by Origin (International/ Domestic) on the basis of Total Visitors in Percentage (%), 2016 Figure 8-1: Market Share of Major Investment Groups in the UAE Theme Park Market on the basis of Revenue in Percentage (%), 2016 Figure 8-2: Majid Al Futtaim Ventures Annual Turnover by Revenue in USD Million and Growth Rate, 2014-2016 Figure 8-3: Majid Al Futtaim Annual Turnover by Segments (Retail, Properties, and Ventures) on the basis of Revenue in Percentage (%), 2014 - 2016 Figure 8-4: Al Hokair Group Annual Turnover by Revenue in USD Million and Growth Rate, 2014-2016 Figure 8-5: Al Hokair Group Annual Turnover by Segments (Hotels, Entertainment, and Others) on the basis of Revenue in Percentage (%), 2014-2016 DXB Entertainment Revenue Streams by Industry (Theme Parks, Retailand Figure 8-6: Hospitality, and Others) in Percentage (%), 2016 Figure 8-7: DXB Entertainment Theme Park Revenue Streams (Admissions, In-Park Spends, and Others) in Percentage (%), 2016 Figure 8-8: DXB Entertainment Theme Park Visitor Breakdown by Admissions (Online, Walkin, Tour Operator, and Others) in Percentage (%), 2016 Figure 9-1: The UAE Theme Park Market Future Projections on the basis of Revenue in USD Million and Growth Rate in Percentage (%), 2017-2021 Figure 9-2: UAE Theme Park Market Size on the basis of Number of Visitors in Million and Growth Rate in Percentage (%), 2017-2021 Figure 9-3: Future Outlook for the UAE Theme Park Market by Type (Theme Park, and Water Park) on the basis of Revenue in Percentage (%), 2017-2021 Figure 11-1: GDP Per Capita in the UAE in USD, 2014-2021 Figure 11-2: Number of Tourists in the UAE in Millions, 2014-2021 Figure 11-3: Urban Population in the UAE in Millions, 2014-2021 Figure 11-4: Youth Population in the UAE in Thousands, 2014-2021
Table 2-1: UAE Theme Park Market Segmentation by Type (Amusement Park and Water Park) on the basis of Revenue in USD Million, 2016 Table 2-2: UAE Theme Park Market Segmentation by Revenue Streams (Admissions, Food and Beverage, Merchandise and Others), 2016 Table 2-3: UAE Theme Park Market Segmentation by Admission (Online, Walk-ins, Tour Operators, and Others), on the basis of Revenue in USD Million 2016
LIST OF TABLES
Table 4-1: SWOT Analysis for the UAE Theme Park Market Table 6-1: Legal Framework, Documentation, Financing and Procedure to Acquire Land in UAE for Theme Park Table 8-1: Key Developments in Market Share of Major Players in the UAE Theme Park Market, 2016 Table 8-2: Market Share of Major Investment Groups in the UAE Theme Park Market on the basis of Revenue in USD Million, 2016 Table 8-3: Company Profile for Miral Asset Management Including Overview, Management, Recent Developments, Current and Future Strategies and Other Parameters, 2016 Table 8-4: Company Profile for IMG Group Including Overview, Management, Recent Developments, Current and Future Strategies and Other Parameters, 2016 Table 8-5: Company Profile for Landmark Group Including Overview, Management, Key Strengths and Other Parameters, 2016 Table 8-6: Company Profile for Majid Al Futtaim Holdings Including Overview, Management, Recent Developments, Current and Future Strategies and Other Parameters, 2016 Table 8-7: Majid Al Futtaim Annual Turnover by Segments (Retail, Properties, and Ventures) on the basis of Revenue in USD Million, 2014-2016 Table 8-8: Company Profile for Al Hokair Group Including Overview, Management, Recent Developments, Current and Future Strategies and Other Parameters, 2016 Table 8-9: Al Hokair Group Annual Turnover by Segments (Hotels, Entertainment, and Others) on the basis of Revenue in USD Million, 2014-2016 Table 8-10: Company Profile for DXB Entertainment Including Overview, Management, Recent Developments, Current and Future Strategies and Other Parameters, 2016 Table 8-11: Comparative Analysis of Major Theme Parks in the UAE by Location, Date of Completion, Operating Hours and USP, 2016 Table 8-12: Comparative Analysis of Major Theme Parks in the UAE by Size, Number of Visitors, Investment and Other Parameters, 2016 Table 9-1: Key Developments for the UAE Theme Park Market, 2016-2021 Table 9-2: Future Outlook for the UAE Theme Park Market by Type (Amusement Park and Water Park) on the basis of Revenue in USD Million, 2017-2021 Table 9-3: Theme Parks in Pipeline in the UAE, 2018-2020 Table 10-1: Analyst Recommendation for New and Existing Theme Park Operators in the UAE Table 11-1: Key Developments for GDP Per Capita in the UAE, 2014-2021 Table 11-2: Key Developments for Number of Tourists in the UAE, 2014-2021 Table 11-3: Key Developments for Urban Population in the UAE, 2014-2021 Table 11-4: Key Developments for Youth Population in the UAE, 2014-2021
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UAE Theme Park Market
UAE THEME PARK MARKET OVERVIEW UAE is considered as most preferred holiday destination for international tourists visiting the Middle-East region. The country had witnessed an augmented inflow of tourist into the country from ~ million tourists during 2014 to ~ million tourists during 2016. During the same period, theme park attendance inclined from ~ million individuals (2014) to ~ million individuals (2016). Industry insight has indicated that tourist revenue generated in the county inclined to USD ~ billion during 2016. The revenue generated by theme parks in the UAE inclined from USD ~ million during 2014 to USD ~ million during 2016, registering a CAGR of ~% during the period 2014-2016. The average expenditure for a day out at an attraction in the UAE was estimated to range from USD ~-USD ~ during 2014-2016. Conversely, visitor spending at UAE theme parks inclined to USD ~ million during 2016.
UAE theme parks have also been observed to leverage the growing technology to effectively cater the diverse group of customers. Theme park operators including IMG Group and DXB Entertainment have introduced their mobile application to aid ticket sales through dynamic pricing and to ease long queues at various rides through online reservations. The launch of new theme park including Bollywood Parks, Legoland and Motiongate in the country during 2016 period also acted as major driver for the market. Theme Parks do not singularly attract visitors to the country; however, they have a crucial impact on the length of stray of tourists visiting the country. Thus, companies are increasing their investment to introduce multi-theme parks while others are expanding their area of operations in existing theme parks due to the projected rise in tourism in the future, hence driving the market.
Figure: UAE Theme Park Market Size on the basis of Revenue in USD Million and Growth Rate in Percentage (%), 2014-2016
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USD Million
NINTENDO/USJOSAKA SUPER MARIO THEME PARK-JAPANCONSTRUCTION PROJECT PROFILE MERLIN/CMCSHANGHAI LEGOLAND AMUSEMENT PARK-CHINA
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UAE Theme Park Market
UAE THEME PARK MARKET SEGMENTATION The revenue generated by amusement parks has driven the overall revenues of the theme park market during the review period. The growing potential for technical advancement of mechanical rides and attractions had incentivized theme park operators to continuously upgrade them to effectively cater the changing preferences of customers. The High initial capital investment in theme parks force operators to charge higher admission fee compared to water parks, which has also resulted in leading position of the segment. In addition, theme park operators have also introduced attractive all inclusive packages, which has stimulated higher revenue generation from this segment Table: UAE Theme Park Market Segmentation by Type (Amusement Park and Water Park) on the basis of Revenue in USD Million, 2016
Parameter
Revenue (USD Million), 2016
Amusement Park Water Park Total
~ ~ ~
Water parks had only accounted for ~% of overall theme park market revenues during 2016. Lesser number coupled with lower admission fee for water parks had adversely impacted higher revenue generation from this segment. It has been observed that most of the water parks in the UAE are situated in premises of luxury hotels and resorts and therefore, are mostly preferred by the guests living in these hotels and resorts.
Table: UAE Theme Park Market Segmentation by Revenue Streams (Admissions, Food and Beverage, Merchandise and Others), 2016
Parameter Admission Food and Beverages Merchandise Royalty from Shop Owners Others (Parking, Games, Monthly/Yearly Passes) Total
Revenue (USD Million), 2016 ~ ~ ~ ~ ~ ~
The revenues generated through admission fees has increased during the review period as a result of allinclusive packages and competitively priced multi-park entry tickets. Since individuals are not allowed to carry food into any of the theme parks in the UAE, visitors are obligated to use food courts and restaurants within theme parks. Premium pricing of food and beverages coupled with restrictions on outside food being brought into theme parks have stimulated higher revenue growth from this segment during the review period. Merchandize stores in Ferrari World and Legoland charge an elevated margin across their products due to higher brand value and popularity, which adds in revenue of the amusement park.
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UAE Theme Park Market
MARKET SHARE OF MAJOR INVESTMENT GROUPS
COMPANY PROFILE OF MAJOR INVESTMENT GROUPS
Table: Market Share of Major Investment Groups in the UAE Theme Park Market on the basis of Revenue in USD Million, 2016
Table: Company Profile for Majid Al Futtaim Holdings Including Overview, Management, Recent Developments, Current and Future Strategies and Other Parameters, 2016
Miral Asset Management IMG Group Landmark Group Majid Al Futtaim Ventures Al Hokair Group DXB Entertainment Others Total
Revenue (USD Million), 2016 ~ ~ ~ ~ ~ ~ ~
Responsible for the development and maintenance of Yas Island, Miral owns and operates Ferrari World and Yas Waterworld theme parks. The above average admission fee coupled with the high brand recognition and popularity of Ferrari brand has helped the company achieve the top spot in the theme park market in the UAE. IMG’s World of Adventure is considered to be the largest indoor theme park in the world. As a result of its temperature controlled setting and unique rides, there has been a constant increase in international and domestic visitors, even during peak summer, assisting IMG group attain second position in the market. The company opened its first Fun City outlet in 1999 and has expanded to around ~ outlets in the UAE alone. Competitively priced rides with low capital investment across all outlets have helped the group garnered a commendable share in the theme park market
Parameter
Description
Overview Management Employee Size Recent Developments USP Key Statistics Current and Future Strategies Business Verticals Majid Al Futtaim Projects in Theme Park Market
~ ~ .~ ~ ~ ~ ~ ~ ~
Majid Al Futtaim is a leading conglomerate pioneering in shopping malls, retail and leisure centers across the Middle East, Africa and Asia, founded in the year 1992. The company owns and operates ~ shopping malls, ~ hotels and exclusive rights to the Carrefour franchise in 38 markets across Middle East, Africa and Asia. The company also operates ~ VOX Cinema screens and ~ Magic Planet family entertainment centers in addition to leisure and entertainment facilities including Ski Dubai, iFly Dubai and Wahooo Water Park. Figure: Majid Al Futtaim Ventures Annual Turnover by Revenue in USD Million and Growth Rate, 2014-2016
USD Million
Investment Group
2014
2015
2016
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UAE Theme Park Market
FUTURE OUTLOOK FOR THE UAE THEME PARK MARKET
TRENDS AND DEVELOPMENTS IN THE UAE THEME PARK MARKET
The revenue generated by theme parks in the UAE is projected to augment to USD ~ million by 2021, registering a CAGR of ~% during the period 20162021. The primary force that will further drive up the revenues of this market is the proposed theme parks in the pipeline that will be operation and open to the public during this period.
Technological Advancement in the UAE Theme Parks: Theme park operators have continuously upgraded their mechanical rides through new and unique technology to augment customer satisfaction. For Instance, World of Adventure theme park is equipped with a 100-seater Hulk Epsilon Base 3D ride system that comes with a 360-degree projection screen and multi-axis motion. In addition, Avenger Battle of Ultron leverages cutting-edge motion tech and stereoscopic 3D imagery while the Velociraptor coaster allows riders to experience a G-force of up to 3.8.
The total number of tourists in the country is estimated to incline from ~ million persons during 2016 to ~ million persons during 2019. Visitors are attracted to the Emirates’ retail offerings, hotels, beaches, Grand Mosque, and desert safaris. Visitor spending at UAE theme parks is said to incline to USD ~ million by 2020.
USD Million
Figure: Future Outlook for UAE Theme Park Market on the basis of Revenue in USD Million and Growth Rate in Percentage (%), 2017-2021
2017
2018
2019
2020
Multi-Park Tickets and Inclusive Packages: Large theme park operators have started offering multi-park tickets and all inclusive packages to customers. These tickets give individuals access to a variety of amusement and water parks, neighboring restaurants, hotels and transportation facilities. For example, Dubai Parks and Resorts (DPR) has created a three park destinations in Jebel Ali with space for a fourth water park in the same area. The company has also established hotels, various themed restaurants and other recreational facilities within this destination to provide a sound foundation for enhanced visitor experiences.
2021
Table: Future Outlook for UAE Theme Park Market by Type (Amusement Park and Water Park) on the basis of Revenue in USD Million, 2017-2021
Type
2017
2019
2021
Amusement Park Water Park Total
~ ~ ~
~ ~ ~
~ ~ ~
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UAE Theme Park Market
COMPANIES CITED IN THE REPORT
Companies Covered in the Report
Major Players
List of Companies • Miral Asset Management • Ilyas and Mustafa Galadari (IMG) Group • Landmark Group • Majid Al Futtaim Holdings • DXB Entertainment PJSC • Al Hokair Group
KEY FACTORS CONSIDERED IN THE REPORT • UAE Amusement and Theme Park Market Size By Revenue • Market Segmentation - By Type (Amusement /Water Park), and By Revenue Streams (Admissions, Food and Beverage, Merchandise and Others) • Customer Profile in the UAE Theme Park Market • SWOT Analysis for the UAE Theme Park Market • Trends and Developments in the UAE Theme Park Market • Market Share of Investment Groups • Company Profiles of Major Investment Groups • Future Outlook for the UAE Amusement and Theme Park Market • Analyst Recommendation • Macro-Economic Factors Impacting the UAE Amusement and Theme Park Market
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