Water parks make money by charging admission fees, but they also earn revenue through sales of food and beverages, souvenirs and merchandise. Parks may also charge fees for using additional facilities or attractions.
Attracting Visitors
Playing outdoors helps develop motor skills of children, and gives them a chance to experience nature, which acts as a stimulus to widen their imagination. Waterparks are a great place to unwind and spend quality time with family and loved ones.
In 2019, Typhoon Lagoon in Orlando had the highest attendance with 2.25 million visitors. The second most popular was Blizzard Beach with 2 million visitors.
An accessible water park will make more money than one that is remote. Weather impacts attendance also – parks in warmer climates can stay open more days. Park size and quality of attractions play a role too.
Targeting teenagers by offering discounts and hosting special events can boost revenue. Finding the right market is key for waterparks to maximize profits.
Investment Considerations
The typical return on investment ranges from 5% to 10%, meaning it takes 10 to 20 years to recoup costs. Factors like market conditions influence this timeline.
It’s essential for waterpark owners to find the right balance between revenue and costs to ensure profitability.
While a theme park may deliver 35 per cent operating profit margin, a strong waterpark can generate over 50 per cent. Adding a water park means guests stay longer and spend more, making it worthwhile.
So waterparks can be a good investment. Profit margin is key when considering investing in them.