Do you want to start a theme park and want to know the cost? If YES, here is a cost breakdown for building an amusement park and the profit margin / ROI. Amusement or theme parks feature rides, games, and entertainment options in an outdoor or indoor venue. Customers typically pay a single entry fee for access to the entire park.
A successful amusement park model focuses on the customer’s entire experience, providing a wide range of services and entertainment options including parking, trams, restaurant options, water parks, roller coasters, live animal attractions, stage shows, arcade games, attractive interactive landscaping, and family friendly fun.
Meanwhile, the bigger the property you own, the more entertainment choices you are able to offer your customers. Your customer base will depend largely on the theme of your park. Some parks focus solely on family friendly entertainment, others work best for teens and young adults, and real – life adventure parks like zip – lines, go – carts, and mixed athletic challenges can target adults.
Cost Breakdown for Building an Amusement Park or Theme Park
Even if you decide to open a 5,000 square foot indoor facility that offers entertainment like bounce houses, arcade games, and pizza, expect a significant investment of at least $250,000 for the building, design, and installation. If you are seeking to open a major amusement park featuring roller coasters, water parks, and live entertainment, you may be looking for investors interested in a multi – million dollar opportunity.
For most amusement parks, there are many different costs. First, there is the cost of research and development. Although this cost is very hard to predict, especially since rides and attractions can go through a research and development process without getting constructed.
For instance, Disney has WDI, with sole responsibility to brainstorm ideas for attractions, and they visualize and propose many attractions every year that never get off of the drawing board. However, at some other parks, the park comes up with one idea and runs with it from beginning to end. The costs for research and development can be high, but often hidden when discussing bottom line financials.
After that, there is the basic cost of the ride system. Be it is a roller coaster, dark ride, or flat ride, a park most likely need to pay a manufacturer for a ride system. Note that the cost is usually the largest cost of the attraction, and very few parks are able to avoid this cost by creating in-house ride systems.
Your average roller coaster can cost anywhere from $1 million to $25 million for just the coaster. Many of the more complicated dark ride systems can cost up to $20 – $30 million, or even more.
Next will be the cost for creating a unique theme. There are parks that barely invest here, while other parks go overboard, so this cost can also vary greatly depending on your vision and plans for the park. In some cases, the theme creation of a park can be as expensive as the ride system, and sometimes is actually a part of the ride system.
You will also have to spend on insuring your amusement park and maintenance and operation of the park, which is a cost that is very difficult to determine. Parks usually have maintenance and operational budget for the entire park, and to determine what it would cost to just operate and maintain a single attraction could be very difficult.
When considering the cost of building an amusement park, there are few or inadequate data to come to a resounding conclusion. Sometimes, parks throw out fallible numbers in a press release either before construction begins, or soon after the attraction is completed. The cost of an attraction can also be offset by sponsorships.
Rumour has it that Mission Space cost almost $200 million to develop and construct, but because of the sponsorship with HP, the bottom line cost to Disney was probably half that. There’s also the term e – ticket which is thrown around by the people who remember the days when Disney used to sell ticket books for attractions, and the e – tickets were the biggest, best attractions in the park.
Today, you can usually count on a Disney e – ticket attraction costing at least $100 million. Even a non – Disney attraction like Spiderman at Islands of Adventure was reported to cost between $50 and $100 million. To say exactly how much it would cost to build a specific amusement park, though, can be difficult due to all of the variables involved in the process.