IAAPA Theme and Amusement Parks at a Glance: North America

We return this month to the latest in our series of appointments with the International Association of Amusement Parks and Attractions (IAAPA) report and projections, between 2021 and 2025, for the global market for the sector in which it is active. This time we look at the highlights of the North American region, which includes the United States and Canada. However, these are two markets of uneven size, as of the region’s total theme park and amusement park revenues of €24.18 billion in 2019, Canada accounts for just over 1.93% (or €468 million), while the United States accounts for just over 98% of the total (or €23.712 billion).

North America, whose revenues fell by 73.5% to €6.418 billion in 2020 due to the impact of the pandemic, was the region whose business declined the most in the world. By country, in 2020, the United States lost 73.5% of its theme park and amusement park revenues, second only to Colombia globally, which lost 78.3% of its sales. However, the Association estimates that the North American region would have recovered and slightly surpassed 2019 revenues by 2022. However, it would be the United States that would lead the recovery, as it would not be until 2024 that this would happen in Canada.

Therefore, the IAAPA forecasts compound annual growth in theme park and amusement park revenues in the region of 8.7% between 2019 and 2025 (although 44.1% if the computation starts with 2020). In other words, the Association estimates that some 437.5 million people visiting North American theme parks and attractions in 2025 (compared to 417.5 million in 2019, or 93.7 million in 2020) will spend more than in previous years. Therefore, in terms of per capita spending inside the parks in the geographical area in question, the compound annual growth rate is expected to be 5.9% between 2020 and 2025, from €68.5 in the first year (when, according to the data, it experienced an unusual growth of 18.3% over the previous year, which is explained by the reduction in attendance and therefore the sample deviation), to €91.04 in 2025.

However, attendance at amusement and theme parks in the region will recover more slowly than overall revenues. Therefore, both Canada and the United States will recover their park visitor numbers, IAAPA predicts, only in 2025. In contrast, as mentioned above, revenues would have recovered to pre-pandemic levels by 2022 in the United States and 2024 in Canada. In conclusion, the sector’s revenue recovery in the region will largely be a consequence of increased per capita spending on theme parks and attractions.

Finally, IAAPA distinguishes, within the US market, between destination parks and regional parks. The former are large parks that “typically feature more attractions based on intellectual properties than regional parks, ticket prices are higher than regional parks and their guest mix includes more tourists who live outside of the immediate vicinity of the park”. In contrast, regional parks “are generally smaller than destination parks, rely more on day travelers than overnight tourists, and are less expensive“.

Interestingly, attendance at regional parks fell by as much as 80.9% in 2020 (from 273.9 million to 52.2 million visitors), while at destination parks it fell by 71.1% (from 126.6 million to 36.6 million people). The same is true for revenues by type of park: while destination parks saw their sales fall by 69.9% (from €13.908 million to €4.182 million), regional park revenues fell by 78.6% (from €9.804 million to €2.098 million). Furthermore, the IAAPA states that “regional parks were hurt more by the pandemic in 2020 than destination parks as many regional parks never opened“. Beyond pointing out that the difference in behaviour is undoubtedly related to the differences between one type of business and another, we leave it to you to reflect on other possible reasons.