Amusement Parks and Arcades
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 3,300 amusement parks and arcades in the US offer a variety of rides, games, or other attractions for entertainment purposes. Amusement parks include theme parks, water parks, boardwalks, and piers, which offer a variety of rides, shows, restaurants, and retail shops. Arcade operators include electronic game arcades, family fun centers, indoor play areas, pinball arcades, and video game arcades.
Seasonality and the Weather
The amusement park industry is highly seasonal and subject to uneven cash flow.
Capital Intensity of Development
Amusement park operations are highly capital-intensive, with firms investing millions to develop, upgrade, and expand facilities.
Industry size & Structure
The average amusement park establishment employs 270 workers, and generates $51 million annually, while the average arcade establishment employs about 15 workers, and generates $1.9 million annually.
- The amusement park industry includes about 500 establishments that employ about 136,000 workers and generate about $25.7 billion annually. The arcade industry includes about 2,800 establishments that employ over 42,760 workers and generate $5.3 billion annually.
- The amusement park industry is concentrated; the top 50 companies account for 97% of industry revenue. The arcade industry is more fragmented; the top 50 companies account for 56% of industry revenue.
- Large domestic amusement park operators include Walt Disney Co., Seaworld, and Cedar Fair. Large firms may have operations in foreign countries. The arcade industry consists mainly of independent operators. Dave & Busters is a large firm with arcade operations.
- The most-visited theme parks in the US include the Magic Kingdom, Disneyland, Disney’s Animal Kingdom, EPCOT, Disney’s Hollywood Studios, and Universal Studios.
Industry Forecast
Amusement Parks and Arcades Industry Growth
Recent Developments
Jul 18, 2024 - Industry Sales Increase
- Quarterly revenue for amusement parks and arcades in Q1 2024 was $8.5 billion, a 4.6% increase from the previous year and 0.7% from the previous quarter, according to the Census Bureau. Producer inflation for amusement and theme parks mostly increased during the first five months of the year, according to according to producer price data released by the US Bureau of Labor Statistics (BLS). Employment rose 3.6% in May 2024 compared to a year ago. Average wages for nonsupervisory employees at amusement, gambling, and recreation firms stayed mostly stable during the first five months of the year, reaching $20.28 per hour in May 2024. According to the BLS, productivity in amusement parks and arcades declined 7.2% in 2023 compared to 2022.
- Six Flags and Cedar Fair completed their $8 billion merger in July 2024, creating the largest amusement park operator in the US, according to CNN. The newly formed company known as Six Flags Entertainment Corporation will operate 42 amusement and water parks across 17 states. Cedar Fair owns 51% and Six Flags owns 49% of the new company, which will be led by Cedar Fair CEO Richard Zimmerman. The merger is expected to help the company be less dependent on any one park or region if weather forces them to shut down. Flagship properties owned by the company include Cedar Fair’s Knott’s Berry Farm in Anaheim, California, and Cedar Point in Ohio, as well as Six Flags’ Six Flags Over Texas, Six Flags Great Adventure in New Jersey, and Six Flags Magic Mountain in Valencia, California.
- The International Association of Amusement Parks and Attractions (IAAPA) projects an estimated 2% increase in North American theme park attendance in summer 2024. The uptick will bring the 2024 attendance total to over 300 million visits. Consumer spending at theme parks is expected to rise 7% in 2024, reaching $32 billion. According to President and CEO Jakob Wahl, “We’re seeing consumers shifting spending from material goods and instead investing in those trips and memories with family.” Wahl noted that many parks have invested in new family entertainment experiences, such as the new Penguin Trek at SeaWorld Orlando and Good Gravy at Holiday World in Indiana. Parks have also expanded technology and inclusiveness; Peppa Pig theme parks are certified autism centers, and new technology at the Wild Waves Theme and Water Park in Washington allows season pass holders to load their digital passes onto their Apple or Google Wallet.
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
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