Theme Park Finance: What Investors Require

The feasibility study is the first step in starting a new amusement park. Leisure Business Advisors (LBA) specializes in conducting this study, which is typically required by lenders and investors to finance the project. The study provides market and financial analysis and projections that will be used in the developer's business plan.

The study also provides critical physical planning recommendations for the business plan. It is critical that design plans are in line with market needs and expected financial returns. These planning guidelines need to be established before financing is in place. Designers and managers can also benefit from the guidance provided in the study, in addition to the project's investors. As part of the feasibility study, LBA can work closely with you in preparing the initial image package that would assist designers in the planning stage of development that follows the feasibility stage. We could provide a walk-through description and color artist conceptual images of your new amusement park seen through the eyes of a typical visitor. These would preliminarily suggest the planned "look and feel" of the new park in financial and marketing presentations. We pride ourselves on prompt service and are also sensitive to time constraints often involved in starting new development projects. If needed, our typically planned schedule can be accelerated for an extra fee. Our standard fee includes travel costs and other out of pocket expenses, so there are no unknown charges.

LBA can also assist developers with other aspects of the initial planning package needed for financing, such as concept development and business plan preparation. Selected past amusement park and theme park projects are described below. These include past consulting efforts by John Gerner, LBA's managing director.

Proposed Disney Theme Park (Latin America)

The Walt Disney Company is the leading theme park developer in the world. Its locations include Disneyland, Walt Disney World, Tokyo Disney Resort, Disneyland Park (Paris), Hong Kong Disneyland, and Shanghai Disneyland. As a senior consultant with Economics Research Associates in the 1980s, John Gerner (LBA's managing director) evaluated locations in Latin America for a proposed Disney theme park.

Universal Studios: Back to the Future - The Ride (Worldwide)

Universal Studios has theme parks in the USA, Japan, and Singapore. John Gerner, LBA's managing director, served as president of Berkshire Ridefilm during the early 1990s. During that time, the company produced the highly acclaimed simulation film for "Back to the Future - The Ride", which is currently at Universal Studios Japan.

Major New Theme Park (China)

Village Roadshow is Australia's largest amusement park operator and owns Warner Bros. Movie World, Sea World, Wet'n'Wild Water World, and other attractions. In 2011, LBA evaluated the market and financial potential of developing a major new attraction in China for Village Roadshow.

Hopi Hari (Brazil)

Hopi Hari is one of the largest theme parks in South America, and is located near Sao Paulo in Brazil. It is 76 hectares (188 acres) in size, and cost USD$220 million to develop.  As a subcontractor to International Theme Park Services, John Gerner (LBA's managing director) evaluated the market and financial feasibility of Hopi Hari.

Pavilion Nostalgia Park (USA)

Pavilion Nostalgia Park is located within the Broadway at the Beach tourist complex in Myrtle Beach, and opened in 2007. During its planning stage, LBA evaluated Pavilion Nostalgia Park's potential financial performance for Burroughs & Chapin Co, Inc.

Nanshan Cultural Tourism Zone (China)

The Nanshan Culture Tourism Zone is approximately 27 hectares (67 acres) in size, and contains several tourist attractions. These include the Hainan Culture Park, Felicity and Longevity Park, and Buddhist Culture Park. Its centerpiece is the Guanyin Statue of Hainan, which is currently the fourth tallest statue in the world. As a subcontractor to Economics Research Associates, John Gerner (LBA's managing director) evaluated the feasibility of developing this major tourism project.

La Ronde (Canada)

La Ronde is a theme park in Montreal that is approximately 59 hectares (146 acres) in size. It offers 40 rides, including ten roller coasters. As a subcontractor to Economics Research Associates, John Gerner (LBA's managing director) evaluated the potential of expanding this theme park and adding year-round uses on the site. These uses included a retail entertainment center, waterpark resort hotel, and expanded marina.

Six Flags New England (USA)

Formerly named "Riverside Park", Six Flags New England is located in Massachusetts. As a subcontractor to Economics Research Associates, John Gerner (LBA's managing director) evaluated the theme park's operating history, market potential, and likely annual attendance based on its planned capital improvements.

Cedar Point (USA)

Cedar Point is a major theme park in Ohio. John Gerner (LBA's managing director) was a senior consultant with Economics Research Associates. He evaluated the impact of various factors on past operating performance. These factors included capital reinvestment, pricing, marketing efforts, economic conditions, and weather.

Busch Gardens Williamsburg (USA)

Busch Gardens Williamsburg is located in Virginia and has been repeatedly voted the world's most beautiful theme park by amusement park enthusiasts. John Gerner (LBA's managing director) was an internal productivity supervisor during the early 1980s, and evaluated the operating performance of individual rides and other components of the park. He also examined past financial performance based on various factors, and prepared the theme park's financial breakeven analysis.

More Information

Click on one of these links for additional information. We are pleased to present Leisure Development Pulse to help inform prospective developers. It showcases selected new attractions worldwide. Details includes name, location, year opened, size, and cost.  Onsite videos are shown, if available.

Contact Information

Email Address for Initial Inquiries:
info@leisure-business.com
 
Office Address:
Leisure Business Advisors LLC
2010 Princess Anne Avenue
Richmond, VA  23223  USA

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