Starting an amusement park business requires substantial capital investment and proper strategic planning. Research potential customers, analyze demand for different types of attractions and research the competitive environment. Create a business plan, including projected revenue and expenses, and a marketing strategy. Decide whether to buy a franchise or start from scratch. Establish how much financing is needed. Determine the costs of location, size of the park, equipment, permits, licenses, payroll expenses, and marketing.
As an amusement park facility business owner, you have to grasp your competitive landscape if you want to stay in business. An amusement park must have memorable attractions that people want to ride or see over and over again. In the coming years, the growth of this entertainment business is expected to continue as drivers continue to have a positive influence on the industry.
Is Owning an Amusement Park Profitable?
The only way you can escape the rigors involved in starting your own amusement park from the scratch is by acquiring an existing amusement park that is put up for sale, or buying a franchise of an existing and successful amusement park.
Steps to Starting an Amusement Park Business:
- Understand the Industry
- Create an Amusement Park Business Plan
- Handle Amusement Park Business Legalities
- Finance your Amusement Park
- Acquire Land
- Hire Manpower
- Purchase Equipment
- Create a Pricing Plan
As a business consultant, I can say the profit margin for an indoor amusement park can vary considerably depending on size, location, rides offered.
Profitability Insights
How much profit can an amusement park make? A busy small indoor park can see profits of $100,000 to $200,000 per year. Large outdoor venues can generate millions.
I have studied the economics of amusement parks extensively. These fascinating establishments make money not only from ticket sales but also food, beverages, merchandise, parking fees, and more. With multiple revenue streams, amusement parks can be highly profitable if well managed.
Financing an Amusement Park
How much money do you need for an amusement park?
Amusement parks are expensive. To build one for a million guests in the first year costs about $110 million. Banks, investors, and wealthy people can provide money. The target visitors are everyone who sees amusement parks as fun places to go.
Registering a business involves more than just filing paperwork. Research, planning, and development also cost money, but those amounts are hard to predict.
Additional Revenue Streams
Water parks earn money through admission fees, and additional sales of food, drinks, gifts, and extra activities. Using facilities and attractions can also cost money.
Disneyland in Anaheim, California, was the first Disney theme park, opening in 1955. Walt Disney oversaw the design and construction.
Revenue and Costs in Detail
Admission accounts for only some of the spending at amusement parks. Food, gifts, parking and more also cost money. What visitors pay and what they buy affects the daily revenue.
Amusement Park Earnings:
- Small indoor amusement parks can make $100,000-$200,000 yearly.
- Major outdoor amusement parks can make millions during the season.
Construction Costs:
- Building mega theme parks like Disney’s or Universal’s costs $2-$4 billion.
- Mid-size regional and super-regional theme parks cost $200-$500 million.
- A roller coaster’s construction averages about $8 million. Engineering teams handle the work.
In 2019, over 210,000 workers were employed in the amusement parks and arcades industry in the U.S.