On March 3, the IAAPA Global Board of Directors—comprised of 22 esteemed leaders from all corners of the attractions industry—offered observations on the state of their businesses during the IAAPA Board meeting in Las Vegas.
The perspectives shared by the diverse cohort of owners, operators, suppliers, manufacturers, and service providers showcase the trends, challenges, and triumphs affecting attractions globally. Many of their comments align closely with the challenges and successes identified in the recent 2024 IAAPA Quarterly Outlook Survey, which provides insight into current member perspectives on business and economic conditions.
2024 Outlook
As the first quarter of 2024 concludes, cautious optimism prevails for board members located across the globe. The 2024 Quarterly Outlook Survey reveals similar but more varied economic projections among member respondents, with global conflicts, cost pressures, consumer debt, lower consumption, and staff shortages contributing to feelings of uncertainty. Despite such concerns, most are optimistic their businesses will grow in the year ahead.
Steady Growth
Several board members based in North America, Europe, the Middle East, and Africa (EMEA), and Asia-Pacific (APAC) report the opening of major attractions in 2023 and have significant projects underway in 2024. Manufacturer representatives note the slowing of orders in China, but shares that business in North and South America is booming as plans are moving forward to invest in ambitious attractions. Several businesses and attractions are experimenting with price sensitivity and new pricing strategies, aiming to yield increased profit without negative effects on the guest experience.
The success of new and existing family entertainment centers (FECs) is a connecting thread across all regions, with some attractions in the Latin America, Caribbean (LAC) region spearheading rapid and significant expansions of their FEC offerings. However, extreme inflation, political obstacles, and limited spending power within some Latin American countries pose challenges.
Despite the obstacles voiced by board members, the future generally remains bright as highlighted in the Q1 Outlook Summary. More than six in 10 members surveyed in early 2024 report improvements in group sales, profitability, attendance, and per cap. Additionally, new products—ranging from expansions to renovations—are now viewed as a viable and lucrative path forward.
Weather
Some European attractions describe a harsh winter involving snowfall, sharing the difficulty of expansion and attraction development in less-than-optimal weather conditions. El Niño also had a profound effect on attraction attendance in the South Pacific—an experience shared by many attractions across the globe that, due to their location, are vulnerable to increasingly extreme weather patterns.
Geopolitical Conflict
In the EMEA region, some attraction leaders are navigating a complex landscape affected by Russia’s invasion of Ukraine. Additionally, supply chain disruptions in the Red Sea have been escalated by the outbreak of war in Israel and Gaza, creating a global ripple effect of shipping and logistical concerns. These sentiments are in line with insights shared in the member survey, with many respondents voicing worries about the effects of global conflict on their business.
Changing Travel Preferences
In the APAC region, large destination attractions are experiencing robust attendance driven by a resurgence in domestic tourism, especially in China. The APAC attractions market is also witnessing a significant shift in the way individuals engage in tourism. While group tours were previously the preferred way to travel, many are now prioritizing solo travel, day trips, time in nature, and the exploration of calming environments such as seaside resorts and temples. This transition to individual travel increases revenue for owners and operators, as visitors are inclined to spend more money when traveling independently. Lunar New Year celebrations at major attractions across Asia have also been proven to drive revenue, with many families flocking to theme parks to celebrate.
As the IAAPA Board of Directors approaches the conclusion of the first quarter of 2024, resilience and adaptability emerge as hallmarks of success. By embracing new consumer preferences, forging strategic partnerships, and prioritizing problem-solving, the industry is poised to navigate challenges and seize opportunities in 2024 and beyond.
