Amusement parks to attract Rs 17K cr investments over 5 years, says report

The Indian amusement parks industry is expected to clock 20% CAGR over the next five years to touch Rs 6,000 crore, a report says

The Indian amusement parks industry, which is still in a nascent stage, is expected to clock a 20% compounded growth over the next five years to touch Rs 6,000 crore, and attract attract Rs 17,000 crore in investments over the next 3-5 years, estimates a report by Anand Rathi Research.

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