Theme Parks Swing From Wild to Mild

Faced with ho-hum attendance, U.S. theme parks are shifting gears. They’re zooming away from targeting teenagers who want breathtaking roller-coaster rides to families that are looking for milder attractions.

Think water parks, parades and no smoking, according to a report to be released today by PricewaterhouseCoopers.

“Theme-park operators are trying to get in children, parents and grandparents to spend a day in the park -- to spend a long time and a lot of money,” said Peter Winkler, a director in the accounting and consulting firm’s entertainment and media division.

When New York-based Six Flags Inc. changed management in December, the company banned smoking in all its parks -- one step in its large-scale effort to re-brand as a family-friendly amusement park. Also, Six Flags is planning more shows, parades, fireworks and rides to draw parents and children to its parks.

“Prior management had focused the company around the roller-coaster arms race,” said Six Flags spokeswoman Wendy Goldberg. “You would put up extreme new rides each year while other aspects got no attention.”

The new plan, however, is not about eliminating teenagers, Goldberg said.

“We will still have thrill rides,” she said. “But we also want to provide a family-friendly atmosphere.”

Many theme parks are adding water parks to attract more visitors, PricewaterhouseCoopers found.

The cost of building a water park is about the same as building a major ride, but a water park can accommodate more guests, according to the report.

Young children and parents, who often shy away from high-speed monster rides, are likely to go to these water parks, Winkler said. Teenagers, however, would rather skip the water slides and swimming pools, he said.

The U.S. amusement-park industry, the largest in the world, has struggled with sluggish attendance growth since the Sept. 11 terrorist attacks.

Now, improved economic conditions overseas and the weak U.S. dollar are bringing foreign tourists to American theme parks, particularly in Southern California and Orlando, Fla., PricewaterhouseCoopers said. Those regions are home to the top 10 theme parks in the U.S.

Domestic tourism also is benefiting from the weak dollar, which is keeping U.S. travelers close to home.

In addition, the fear of traveling that developed after the 2001 attacks has decreased, the report said.

PricewaterhouseCoopers projected that attendance at U.S. theme parks would rise to 365 million in 2010 from 335 million in 2005, a compound annual growth rate of 1.7%. During the same period, consumer spending would jump to $13.4 billion from $11.2 billion, a compound annual growth rate of 3.6%.

The steady-but-modest growth isn’t surprising, Winkler said, because the U.S. theme-park market is saturated.

In 2005, attendance at the three major California destination parks -- Disneyland, Disney’s California Adventure and Universal Studios Hollywood -- grew to 25 million, a 4.3% increase from the previous year, according to the report.

However, much of the increase could be attributed to Disneyland, the state’s largest destination park, which began its 50th anniversary celebration last year.

The Anaheim park drew 14.6 million visitors, up 8.5%, according to the study, which based its numbers on industry and trade group reports.

Destination parks are open year-round and visitors usually plan their trips in advance -- booking plane tickets and hotel rooms, for example. Regional parks tend to be within driving distance and open primarily during the summer.

Construction will begin this year on a new theme park in Myrtle Beach, S.C.; it is scheduled to open in 2008.

Rather than build new parks, companies normally upgrade existing ones.

Merlin Entertainment Group, owner of Legoland in Carlsbad, will spend $10 million on a new pirate-themed area called Pirate Shores within the park that will have four new water attractions, the report said.

The largest expansion in the park’s history, it is part of the company’s effort to make the park a destination location.

“In the theme-park industry,” Winkler said, “the rate of growth tends to be tied to the willingness to invest in new attractions.”