Will the economic downturn spell disaster for theme parks?

[RIP Psyclone]

www.yahoo.com/s/845316

[RIP Psyclone]

Ideally, no, because the "disposable" income that families spend on theme park trips can be reallocated from other things such as new cars, clothing, etc.

[Mechanic]

I don't know that it'll spell "disaster" for theme parks, but I've got to imagine that if people have less disposable income then they're going to prioritize their spending accordingly. I wouldn't be surprised if there's at least a slight downturn in park attendance nationwide. Quoting CF's profit and loss numbers for the last 2 seasons is a bit misleading however. There's a lot more reflected in those numbers than fluctuations in the economy recently.

[ginzo]

Disaster? I sincerely doubt it. We're not technically even in a recession yet and we haven't had the mass waves of lay offs like we had in 2001-2002.

 

I think a lot of places might see flat attendance, but remember that visiting regional theme parks is a very affordable form of recreation. You might see more of that in lieu of bigger and more expensive trips.

[Philrad71]

I would think that the bigger name Disney-type theme parks might take a bit more of a hit than say a Waldameer, or Indiana Beach, because those are smaller, cheaper parks that seem to cater more to local peeps. Not to mention that the price of admission is a bargain and most people can afford those over the highly priced Disney resorts.

 

I believe that you can get an all day ride and slide at Waldameer for under $25, but how many can now afford the $80-$100 per person range that some of the Disney and Universal parks charge, not to mention the lodging, travel and food? I would imagine that people will probably flock to their home theme parks and avoid the gas-guzzling long treks across the country to go to the big name theme parks. And the way the airlines have been lately with all the delayed and cancelled flights for safety inspections, I would imagine that might slow down some of the air travellers as well.

 

I know that I am not going to let the economy, or the price of gas slow down my trips to theme parks this season. But, I will probably be more apt to hit up my "local" parks - CP, Waldameer, Canada's Wonderland, Fantasy Island, Hershey, and Darien Lake are all reasonably close. Instead of staying at the higher priced hotel chains, we look for local campgrounds that are usually reasonable. For example, you can stay at Sara's campground right next door to Waldameer and pitch a tent on the beach on Lake Erie for like $23 a night...and the view and sunsets are killer! Just don't tell them that you are there to ride Ravine Flyer, or they might not let you have a site!

 

That is another reason why I think that the coupon thread in this forum is a wonderful idea. If anyone happens to be traveling and hitting up a theme park, at least they know where they can pick up some discount tickets and save a little cash.

[PURE]

Yahoo has the worst news clip and video stories period. They make up issues that may not even be possible and turn them into issues that sound important.

 

I wouldn't take this as more than a grain of sand (salt?).

[hemmy]

Yahoo has the worst news clip and video stories period. They make up issues that may not even be possible and turn them into issues that sound important.

 

I wouldn't take this as more than a grain of sand (salt?).

 

All of those videos are from either CNN, Fox, ABC, BBC, etc.

 

This video in particular is from CNN

 

Not sure what it has to do with yahoo.

[Tanks4me05]

It's definitely not affecting my family all that much. My parents jobs (both band teachers) are quite secure, as they have been teaching for over 25 years each. We aren't worried at all. Plus in central New York, we are (thankfully) relatively isolated from the economic downturn, at least from the housing standpoint. I won't be affected at all.

 

 

Darien Lake

 

Granted, DL is not my favorite park, but it is good, and it has HUGE potential. The park is rather clean, and trust me, I looked hard. There are only a few spots of cracked pavement. There's one large moyund of cracked pavement behind Potato Works, but that's the only spot worth fixing. People that think Viper and Boomerang are rough, frankly are whimps. I have been on Predator and Astroland's Cyclone, I know what rough is. Mind Eraser is kind of rough, but still, others are whimps. Yeah, Predator is rough, but it isn't that bad in the second car, first row. The flat ride collection is well rounded, and RoS has great airtime. (I have been on S:ROS at SFNE so I know what a good ride is.) Besides, things are finally looking up. Remember MotoCoaster - our first ride that cost more than a week's worth of lunch money in the past decade. And the structure is about half done already, based on reports at wnycoasters.

 

*Takes a poo in Philrad71's cereal boxes, leaves thread in disgust, and sulks in basement for the following week.*

[DCody]

I kind of feel like some families are "theme park families" and some just aren't. Yeah, a big spendy place like WDW could take a hit on a macroeconomic level, but people who love theme parks and go every year will probably continue to do so.

 

I do worry that with culture being as accelerated and A.D.D. as it is that people will lose interest in the simple pleasures offered by, say, a Knoebels-type park. But that's more zeitgeist-y than economic.

[PURE]

Yahoo has the worst news clip and video stories period. They make up issues that may not even be possible and turn them into issues that sound important.

 

I wouldn't take this as more than a grain of sand (salt?).

 

All of those videos are from either CNN, Fox, ABC, BBC, etc.

 

This video in particular is from CNN

 

Not sure what it has to do with yahoo.

 

I was talking about Yahoo's promotions to those videos. They have them linked from their home page.

 

Like this "news clip," they ussually say nothing. What did this news clip tell us?

 

1. The economy could effect the theme park industry numbers this year. Duh.

 

2. Conversely, the economy could have no effect on theme park industry numbers this year. Duh.

 

3. There are many alternatives to not spending money at a theme park ie go to the beach instead. Duh.

 

What was this video? A waste of time.

 

Its the same reason I can't watch TV anymore. Its all trash.

[geaugalakeinexile]

Ideally, no, because the "disposable" income that families spend on theme park trips can be reallocated from other things such as new cars, clothing, etc.

 

I think that some parks like CP will suffer. CP is located about 1 hour from any major population center. And the cities near them have high unemployment rates. Paying for the park, parking and gas is going to hit some people. The smaller local parks should do OK, they are priced much better, and are near enough people to survive.

As for Darien Lake, I'll drive to there for opening day from Cleveland.

To me, DL is a fun, relaxing park. And priced really good.

[cathyJ]

I doubt the downturn will affect the parks all that much other than slightly lower attendance figures.

 

Of course one can't predict exactly when a recession is going to occur but this downturn, I believe to most people it isn't a surprise. Heck, way back in 2005 when many banks like Wachovia, Bank of America and Chase were raising minimum payments on credit cards ( part of the so-called President Bush's Pay off America's debt program..Wachovia Bank told me this )and when many people saw gas at $3.00 a gallon for the first time, many people believed and predicted a downturn would happen in a few years. They were right.

 

Even the mortgage problems aren't a surprise. I can remember just a few years ago when some of those Las Vegas and Phoenix area mortgage companies were advertising on television here in Virginia bragging how ANYONE can buy a house there even if he/she didn't have a job. My neighbor's 26 year old son who had never held a full-time job in his lifeand his girl friend who had not worked in years, even they were able to buy a house in Las Vegas. No wonder the mortgage industry has problems.

 

But going back to theme parks...I am pretty sure Six Flags/Cedar Fair and the other companies knew a downturn would happen sooner or later and with all those signs over the years spelling DOWNTURN, I am sure they planned for it.

[hemmy]

Ideally, no, because the "disposable" income that families spend on theme park trips can be reallocated from other things such as new cars, clothing, etc.

 

I think that some parks like CP will suffer. CP is located about 1 hour from any major population center. And the cities near them have high unemployment rates. Paying for the park, parking and gas is going to hit some people. The smaller local parks should do OK, they are priced much better, and are near enough people to survive.

As for Darien Lake, I'll drive to there for opening day from Cleveland.

To me, DL is a fun, relaxing park. And priced really good.

 

But Michigan has had economic problems for a while now, and until the last year or 2 the Detroit area was CPs main source of attendance I believe.

[Hercules]

Even though there is a glitch in the economy, people's lifestyles aren't really being affected right now. People are just going further into debt. I read an article a couple weeks ago, but I won't guess on figures as I don't recall the exact quotes from the text. However, I can say that within the past five or so years, people are still living the same quality of life, especially with entertainment and other things that are considered to be bought with disposable income, and they are just going thousands of dollars more into debt. Sure, it will catch up with them, and it will also eventually catch up with businesses within the entertainment industry if this economic trend continues - however, I don't believe there is any real short term concern for amusement parks. The only parks that I see having a problem are the smaller parks around the country like the ones in Western Pennsylvania for example. Parks that don't appeal to the masses and don't have a high advertising budget could be crushed.

 

DCody - I don't think that Knoebels itself will be devastated by this as I think the community around the park is a staple in their success. People in and around Elysburg are very devoted and loyal to the park and I don't think there would be a major drop in attendance or profit margins. However, I do see where you are coming from in you thought as many small parks will have a hard time.

[VivaLaVibora]

I think that people will still spend on the entertainment in their life, and an amusement park is one of them. I think that the Florida parks are probably the only parks that might be affected. It costs a lot to get to them, and stay there for 5 days. A one day trip to Cedar Point isn't going to cost them as much as a $1600 vacation to Disney World.

[denning]

It has been proven time and time again that entertainment demand is relatively inelastic and recession-proof.

 

When times are tough, the escapism and release from the day to day worries that a movie or themepark offers is huge for a family.

 

Local themepark attendance will likely go up, for families that can not afford to go on a lengthy summer vacation or road trip, one day at a local park, taking advantage of the usual available discounts, is the perfect escape that can be factored into most budgets.

 

Week long family trips to Disneyworld, Europe requiring air fare will be hit, but not local daytrips.

 

This should be good for Six Flags and CF. Remember, six flags original concept was to fight Disney by possible as a day trip for almost all Americans with a park within a three hour drive.

[PURE]

When times are tough, the escapism and release from the day to day worries that a movie or themepark offers is huge for a family.

 

Local themepark attendance will likely go up, for families that can not afford to go on a lengthy summer vacation or road trip, one day at a local park, taking advantage of the usual available discounts, is the perfect escape that can be factored into most budgets.

 

Week long family trips to Disneyworld, Europe requiring air fare will be hit, but not local daytrips.

 

Exactly. It all evens out. Whether or not the economy is up or down this year has no determination on the results of the companies yearly profits.

 

Now, if we're in a depression...