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<u>60 Leisure Parks coming</u><br><p>Get set for fun & games
Rahul Kamat
In 1982, with the launch of Appu Ghar in Delhi, the amusement industry took off and it never looked back. The 80s had amusement parks penetrating metros, while in the 90s 'A'-class cities experienced a boom in such parks. By 2000 'B'-class cities had them, and now, by 2010 every big suburb in mega cities and district locations will have an amusement park with additional features like Snow Park and live shows. There will also be ultra modal rides with more than 90 rides.
According to the Indian Association of Amusement Parks and Industries (IAAPI), investments up to Rs 3,000 to Rs 5,000 crore are expected towards setting up and operating 60 new amusement parks nationwide.
Over the next two years, the association foresees investments to the tune of approximately Rs 1,000 crore in the northern region. New parks are coming up in towns with a population of more than 10 lakh. Two parks in Nagpur, one each in Gwalior, Raipur, Bilaspur and Aurangabad are also in the pipeline. Moreover, the industry is expected to get a shot in the arm with two new amusement parks in Delhi, and one each in Chennai and Bangalore, which are under construction.
Since many amusement parks have been undertaken throughout the country, people are curious to know about the possibility of a Disneyland in India. According to Balwant Chawla, President, IAAPI, "The Indian amusement industry is in the midst of a boom. Millions in the metros as well as in cities and even in small town are on the lookout for world-class entertainment avenues. The sector has tremendous potential for investment by business houses and foreign investors." However, he adds, "if we want a Disneyland, we will have to pay more than $30 per person because right now people are spending nearly $5 to $6 per person at amusement parks."
Looking at the current development, he says, "Investment in the amusement sector could manifest in theme parks, water parks, family entertainment centres, multiplexes, interactive arcades, food bazaar and sports zones. India has very few family entertainment options, and that is one reason the country is viewed as a long term potential investment destination."
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South Asia's largest theme park in Noida |
Special Correspondent
In 2008, Noida will be a proud witness to South Asia's largest theme park which is coming up on an expanse of 142 acres. The project, at a total cost of Rs 1,000 crore, is jointly promoted (50:50) by Unitech Ltd and International Amusement Park Ltd.
Unitech Ltd is consciously foraying into the amusement sector for two reasons. First, demand for this industry makes it a lucrative business proposition and second, Delhi is devoid of good entertainment options. Apart from movie theatres and restaurants, there is nothing better available. Moreover, like hotels, there is no seasonality factor attached to the amusement sector. It is a year-around business. Making such big facility available in South Asia will be the company's USP.
The features that will make the park South Asia's largest theme park include three separate parks for children, teenagers and families; a waterfall and a village that will have India's largest shopping mall; largest food court, and a six-screen cineplex. A total of 39 rides have been finalised for the theme park. All these attractions will be installed in the first phase of development by mid-2005. |
According to Rajen Shah, Vice President, IAAPI, Disneyland in USA has had over 500 million visitors from across the globe till January 2004, and it has generated revenue over $7.3 billion in 2004 alone. In India, some of the major amusement parks such as Esselworld (Mumbai), Fun Food Village (Delhi), Dizziworld (Chennai) collectively recorded around 15 million visitors every year and generated Rs100 crore in 2004.
Despite these buckets of success, the local amusement industry is not growing at a faster rate when compared to other nations, because the government policies are not favorable for its growth. Thus, as the industry grows, IAAPI is striving to get the amusement and leisure industry acknowledged as a vital part of social infrastructure. "The resultant exemption from entertainment tax would serve as an immense boost to the industry, attracting more visitors as a result of lower tickets rate," says Ashok Goel, Director, Pan India Paryatan Ltd. "We have to apply on an average for 75 licenses, and some of them are required to be renewed every year," he adds.
Long gestation periods, bureaucratic hassles, varying entertainment tax structure, continuous innovation, maintenance expenditure, stiff competition from multiplexes and other sources of entertainment have put profit margins of the industry under pressure.
The major clients of amusement parks are domestic tourists for whom the park is often the only option for entertainment. Pointing to that, Chawla says, "It is not proper that the public as well as the government distinguish amusement parks as an entertainment option which constitutes one of the major tourist attractions for any country or for even a particular province within a country."
Internationally, an amusement park is deemed part of social infrastructure and has received due importance in the tourism sector. The time has come to implement this idea in India as well.
Considering the long-term potential the industry promises, the government would do well to provide the right support and facilities to the industry from its early days. The impressive growth shown by the amusement industry over the past few years should not go overlooked. To give a boost to the industry, the ministry of tourism is planning to come up with some policies over the next few months. Thus an inclusion of amusement industry in tourism sector might just provide the needed shot in the arm.
It is worthwhile to note that the employment generated by this industry is 10 times more than the equal amount invested in the manufacturing sector.
[2 May 2005]
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