Global meltdown to hit amusement park industry

The turmoil in the global financial market has taken its toll on the amusement park industry which has seen a fall in its growth rate. However, industry players expect that the sector would be able to attract fresh investments of Rs 500 - 600 crore next year.

Over the past five to six years, the industry has grown rapidly with the advent of organised players. The industry was poised to grow at 25 per cent on a year-on-year basis. “There will be initial hiccups next year as the entire world is facing financial crisis. There are possibilities of some projects getting delayed,” said Arijit Sengupta, president, Indian Association of Amusement Parks and Industries (IAAPI).

IAAPI is the apex body for the industry comprising over 170 members, including operators, manufacturers and importers.

“Nearly Rs 1,000 crore were pumped in for new amusement park projects in the country last year but we expect fresh investment of only around Rs 500 to 600 crore next year,” he added.

Sengupta, however, expressed hope that the industry is poised to grow substantially in the long term. “Many new amusement parks are coming up in Noida (Uttar Pradesh) and Andhra Pradesh. The new players are also bringing in the latest technology,” he added.

The industry has so far witnessed Rs 4,000 crore of cumulative investment.