Family Entertainment and Amusement Parks Market in India


Important addresses:

Indian Association of Amusement Parks & Industries,
IAAPI Secretariat
Sector - 11, Bldg No. B/32,
B-103, Shanti Nagar,
Mira Road (East),
Mumbai - 401 104. India
Tel: +91-22-5690 7426/2812 1494
Fax: +91-22-5690 7427
Email: info@iaapi.org


The All India Association of Industries,
106,Uttam House,
P.D'Mello Road,
Carnac Bunder,
Mumbai - 400 009
Tel: +91-22-23412632/23412643/ 5645305/5645306
Fax: +91-22-341 5685/345 1662
Email : info@aiaionline.org

 


An
IndiaOneStop.Com  synopsis

  • Given the surge in India's middle classes, the family entertainment and amusement sector of the India economy holds out promise for investors, both domestic and foreign.

  • As at the start of 2001, this industry incorporated an investment of Rs. 1,000 crore (1 crore = 10 million). Currency converter.

  • Between 2001-04, the industry is expected to grow three-fold in terms of both number of parks and total investment intake.

  • Between 2001 and 2005, an estimated 400 new parks in this category are expected to be built all over India.

  • However, as at the start of 2001, there were no rules specific to the development of amusement parks. Businesses wanting to enter this sector had to get as many as 19 renewable no-objection certificates annually.

  • Most of the existing and planned or under-construction amusement centres are being developed by Indian entrepreneurs using amusement equipment available off-the-shelf in the United States and Europe.

  • There is no legally defined requirement of area for amusement parks in India. But, the general norm is that a population centre of six million people can be served with an a park covering an area of 40-60 acres.

  • Foreign direct investment (FDI) in India's amusement parks sector is inhibited by low gate fees (currently varying between Rs 30-250 per person. In some parks, such as Essel World and Water Kingdom (85 acres) in Mumbai, the gate fee is on the higher side but most games (expect the water games) are covered by it. In contrast, Calcutta's Nicco Park (40 acres) has a relatively low gate fee but many of the games are separately charged.

  • Foreign companies reportedly interested in the Indian amusement parks market include Universal Studios, Time Warner and Disney.

  • According to the Indian Association of Amusement Parks and Industries, a park can be profitable if revenues from gate collections and other sources (such as food, toy memorabilia sales) reach a 50:50 ratio. However, in Essel World and Water Kingdom in Mumbai, the ratio still stands at 70:30 in favour of gate collections.

  • The industry is campaigning for lowering land costs and entertainment taxes. Industry spokesmen point at the Ocean Park in Hong Kong which was provided free land and soft loans by the government. They also point at Disney park in the United States where 3,000 acres are being reclaimed from the sea for which Disney will pay only 20 per cent of the investment.

 


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