Theme parks expect stable attendance in weak economy

The weak US economy is expected to boost attendance at major theme parks, as families search for summer entertainment options that don’t require as much travel.

“It’s going to be a close-to-home year,” suggested Dennis Speigel, the president of industry consulting firm International Theme Park Services. Acknowledging that the economy “isn’t going to help anybody,” he predicted that companies such as Six Flags Inc and Cedar Fair LP may actually benefit as vacationers “will not be traveling as far because of gasoline prices.”

Promotions to attract more visitors have started earlier this year, Speigel continued. Six Flags widely advertised that it was cutting its entrance fees by $10 at the majority of its 19 US theme parks, when tickets are purchased on its website.

The chief financial officer of Six Flags, Jeff Speed, indicated that the company has seen attendance at regional parks being resilient during past economic slowdowns. “They’re not going to do away with vacations, but they scale back a little bit,” he noted.

The ‘destination’ parks, including Busch Gardens, Disney World, and Universal are not expected to feel much of an impact, even if fewer domestic tourists visit their parks, because the weak US dollar is drawing more foreign tourists to the country this year, and many will include one or more of these parks in their plans.

It’s still early in the season to know for sure, as July and August traditionally draw the most attendance, but Lee Alexakos, the vice president of marketing and advertising for Cedar Fair, reported that the company’s Memorial Day weekend had been “outstanding.”

www.interthemepark.com