d dining. Disney, Universal, and SeaWorld are all reporting lower profits this quarter. Although this is affecting the entire industry, it is the non-Disneys and Universals that are in the most trouble. Many parks are putting their plans on hold or shutting down entirely. Tennessee's Dollywood has delayed it's latest projects until 2010. Florida's famous Cypress Gardens is removing their rides and zoo animals. If you have a couple thousand bucks to spare you can purchase their attractions online (Starliner Woodie for sale, pictured, left). Branson's Celebration City is among the handful of parks that have been forced to shut down. Most depressing of all is that Hard Rock Park, the only major American theme park to open in the last decade, which filed for bankruptcy back in September, is up for sale six months after it's debut. With the future of theme parks everywhere on the line, I have commented on two excellent blogs regarding theme parks' responses to the current economic climate. One on a major park and one on a minor park. The first post I commented on, "Chance to Purchase Disney Theme Park Merchandise at Discount May be Approaching," is about the Mouse's latest response to the entertainment spending recession. Following up on a previous post about Hard Rock Park misfortunes, my second comment is on the Coaster Critic's post, "Hard Rock Park for Sale, Future Uncertain." I have included my comments below as well as to the bloggers' posts."Chance to Purchase Disney Theme Park Merchandise at Discount May be Approaching"
Comment:
Thank you for your lively post about Disney's new discount merchandise test. There have really been some interesting new Disney developments in response to the country's economy as of late, starting with the "What Will You Celebrate?" campaign. Unfortunately, I cannot see this idea being very successful. For one, it appeals only to a limited group of big Disney spenders or collectors who will be purchasing these items whether they have a discount or not. It is just a little bonus for them. These are the people that Disney has chosen as the
testees for this experiment, and beyond this group it will be far less popular. Even if guests are willing to spend five hundred dollars on merchandise, they will feel better about it if they spend a little at a time as opposed to one large sum for the credit. On the other hand, it is possible that consumers may react favorably because it could theoretically put an imaginary limit on their spending. They have a specific sum of money allotted for the vacation and their souvenir budget must fit within this frame. Personally, I think the way I would use the credit would be on the collectible Disney artwork that I so covet every visit. Those might not be included in the credit's usage policy though. The fact, however, is that I am a poor college student, and as much as I would love to buy hundreds of dollars worth of Disney merchandise credit, it is not going to happen. This promotion is not going to affect my Disney consumption in the slightest, perhaps something a little less high roller oriented such as meal coupons would be a more enticing deal to those on a smaller budget. It is interesting that you do point out that there are benefits to be found in this time of economic crisis, which is a point that is often forgotten. There are great deals everywhere, and if you are a die hard Disney collector, this is a dream come true. Discounted merchandise inside the park is a rare phenomenon, indeed. Should this offer open to all Disney visitors, in addition to the select group it is currently servicing, it will be interesting to follow it's success and see if Universal follows suit with a similar promotion."Hard Rock Park for Sale, Future Uncertain"
Comment:
Thank you for another interesting and timely post. Sadly, this is most unfortunate news. I have been looking forward to Hard Rock Park since it was announced and was unable to make it to Myrtle Beach from Los Angeles in the few months it was open. The current economic slump is really taking a toll on these smaller parks. With so many shutting down and plans being pushed back, I hope we have a financial turn around soon. Theme parks' futures are on the line, certainly Hard Rock's is. It would definitely be interesting to see if the park's success would have been different in more affluent times. Although, the management's marketing incompetence seems to have been a major factor in it's demise. I think Cedar Fair would be the best choice for a new owner. In my opinion, they really improved Knott's Berry Farm's management when they purchased it in 1997. Granted they got rid of a lot of classic attractions that gave Knott's it's nostalgic, old-school charm, but financially it has been successful. What do you think would be the best choice? From what I know about Hard Rock Park, it appears to have more than a few worthy rides, attractions, shows, and ideas to be given a fair chance.
It is interesting to see how different parks are affected by the unfavorable economic climate. Disney does not seem too worried, offering a few merchandise and hotel discounts, while other parks like Celebration City are closing the gates. Perhaps it is time for parks to lower admission costs. When was the last time that happened? In a depression environment, the movie industry thrives because it is still the cheapest form of entertainment outside of the house, despite the higher-than-ever ticket prices. In order for theme parks to compete with them, it only makes sense to lower admission prices, especially in California where Governor Schwarzenegger has proposed applying the sales and use tax rate to amusement parks and sporting events, which will raise park admission by seven to eight dollars. I might have to sacrifice TiVo or gasoline to get my theme park fix. These are trying times. The worst part, however, is that we cannot look forward to any new parks getting built in this kind of economy.
