Amusement Parks and Arcades NAICS 7131

Apr 23, 2025 - Higher Growth Forecast

• The US amusement parks and arcades industry is projected to grow at a CAGR of 5.31% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is faster than the overall economy's projected growth. Spending by US households and tourists, foreign students, and other visitors largely drives the arts, entertainment, and recreation industries. Consumer confidence is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if average prices rise due to tariff implementation.
• According to the Consumer Price Index, prices for recreation services including leisure and entertainment activities were up 4.3% in March 2025 year over year. Leading industry indicators showed improvement in February 2025, with consumer spending up 2.7% compared to a year ago, according to the Bureau of Economic Analysis. Employment and wages were up in January 2025 year over year, increasing 2.5% and 4.2%, respectively. Producer inflation for amusement and theme parks was flat in December 2024 year over year, according to producer price index data from the US Bureau of Labor Statistics.

• According to a report in The New York Times, Universal has announced a number of new projects in new markets as it seeks to compete more effectively with entertainment and theme park powerhouse Disney. Universal’s expansion plans include projects in Dallas, Las Vegas, Los Angeles, Britain, and a new theme park development in Orlando. The company’s project in Las Vegas is called Universal Horror Unleashed, and will hold four haunted houses themed to movies like “The Texas Chainsaw Massacre” and “The Exorcist: Believer.” Universal’s Kid Resort project near Dallas is aimed at children ages 3 to 8 and will feature rides and play areas tied to movies like “Shrek,” “Trolls,” and “Minions.” The 32-acre “starter” park is expected to open in 2026. The company has several projects planned to open in 2025. Its Fan Fest Nights events in Los Angeles at Universal Studios Hollywood will begin in April 2025, and its new Epic Universe development slated to open in May 2025 in Orlando will be a 750-acre theme park with three hotels.
• Amusement parks and arcade visits may be affected by falling consumer confidence, with levels declining 7.2 points to 92.9 in March 2025 month over month, according to the Consumer Confidence Index from the Conference Board. Stephanie Guichard, Senior Economist of Global Indicators at The Conference Board, noted that the segment driving March’s decline was consumers over 55 years old, and the decline spanned all income groups with the exception being households earning over $125,000. Per Guichard, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.” Purchasing plans for homes and new cars declined while big-ticket purchases rose on a six-month moving average basis, which may reflect plans to purchase certain items before impending tariffs lead to price increases.