Theme Park Risks in Today's Market

Our modern world has created a sophisticated, culturally and economically diverse society. With the fast pace of life, people have the need to be entertained, escape from the stresses of everyday existence, and very little spare time for entertainment and vacationing. Realizing this, the theme park industry has harnessed cutting-edge technology and modern marketing techniques to provide the ideal way to be entertained, thrilled and even scared in an environment that is supposed to be safe and affordable. However, the same diversity that adds to a rich world culture and economy also poses risks of varying degrees for the modern theme park. This paper will examine four of those risks, the specific consequences of those risks, and a determination as to whether the risks are of a low, medium or high level.

The first risk, which has permeated every aspect of modern society, is terrorism. To put the risk of terrorism at a theme park into perspective, in the year of the 9/11 Attacks, 2001, American amusement parks hosted nearly 320 million visitors (Wilson, 2002). Because the attacks occurred after what is the typical American vacation season, and prior to 9/11 no substantial security measures existed in these parks, it is almost dumb luck that millions of innocent theme park visitors were not injured or killed through acts of terrorism. Not only was there a general lack of security in public places at that time, but theme parks were well known for an open door policy that welcomed huge crowds on unsuspecting visitors without much security screening or close scrutiny by park personnel. Research shows that many parks had risk assessments in place prior to 9/11, but none had been put in place to any significant degree prior to terrorism busting open on American soil. Today, park personnel in all areas of operations are trained in security measures to thwart possible terrorist acts.
The specific consequences of terrorism in a crowded theme park speaks for itself in terms of the damage and loss of life and property, but from a marketing standpoint, at the risk of being insensitive to the human element, the business entity of the theme park would face a huge dilemma from the negative publicity of such a tragedy. The park would be forever tainted, and attendance would surely plummet. As a result of dropping attendance, the park could close altogether, leading to unemployment for hundreds, perhaps thousands, not to mention the negative impact on other local businesses that derive customers from theme park attendees. For those who still go to the parks, ticket prices will be much higher to compensate for increased security costs at the parks and less attendees. Based on human and economic costs, this would be a high risk for a theme park.

Cultural differences have an impact beyond terrorism; if leisure destinations such as theme parks do not realize that different cultures have different perceptions of what is humorous, fun, or what is offensive, the results can be terrible. For example, a theme park opening in India would not be wise to serve hamburgers on their menu. Although this is a highly desirable food in the United States, the Hindu religion, making up the majority of India's population, holds cows in high regard and eating them is a sacrilege. Conversely, an Asian theme park, locating in America, would not serve roasted dog or rodent meat as is Asian custom, lest they offend American theme park guests. The point being made here is that all areas of culture must be considered in the marketing mix of a theme park; otherwise, the park could again become a financial failure, affecting the surrounding economy along with it. Cultural disputes could arise from cultural offenses, and social unrest could result. Smart marketing and research could avoid this problem, so it should be considered a low risk.
A final risk that should be discussed is the rising energy prices, which translates into higher gasoline prices. These higher prices make travel more expensive which would affect, among other things, attendance at theme parks. If people cannot affordably drive to theme parks, they may not attend at all. Also, the rise in fuel prices will increase the prices of the goods that are needed to run the theme park, which could raise admission prices, which will also reduce attendance and narrow the market of possible attendees, causing financial consequences for the theme park's operators, employees, and other stakeholders. As a consequence, many people may be deprived of enjoyment and the economic effect will ripple throughout the community. This could lead to an increase in crime as people find themselves in financial trouble, and violence could increase.

Because of the wide appeal of theme parks across all social/economic classes of people, class disparity, or more specifically, the failure to recognize it and market in response to it, could create a risk for a theme park in today's market. Often referred to as the "Disney effect", theme parks have united popular and elite culture in a unique way (King, 1991). For example, many theme parks now combine history, science or the arts with theme park attractions, taking advantage of the latest technology to entertain and educate, such as in the case of Disney's EPCOT Center in Orlando, Florida. Disney is very skilled at catering to the higher educated market segment (most likely to spend the most money at their parks) without alienating the lower classes, who also represent a significant portion of the target market. However, when this is not done properly, the park is either "dumbed down", losing the appeal of the more affluent guests, or is made into a wonderland for the elite and educated, which forces out those of a lower economic level. Either scenario would lead to loss of market share and reduced opportunities for future growth. As this is also something that can be managed through careful planning and marketing, this is considered a low risk.

Despite the risks presented in this paper, the outlook for theme parks looks bright; attendance has been on the upswing since 9/11 (Theme Park Outlook-2005) and new generations continue to discover the joy of theme parks. Smart marketing and careful planning will greatly reduce the risks to theme parks, and they should continue to delight people from all walks of life for years to come.

Works Cited

Fussner, John. "Not All Fun and Games." Security Management Aug. 2002: 84+.

King, Margaret J. "The Theme Park Experience; What Museums Can Learn from Mickey Mouse." The Futurist Nov.-Dec. 1991: 24+. Questia. 28 Dec. 2005 .

Theme Park Outlook-2005. 2005. International Theme Park Services. 28 Dec. 2005 .

Wilson, Caroline. "Ensuring a Smooth Ride: September 11 Drove Home the Need for Good Contingency Planning and Caused Many Theme Parks to Review Their Emergency Preparedness Plans." Security Management Aug. 2002: 92+.