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Thursday, Apr 25, 2024

PARKS—Valley Theme Parks Insist They’ll Have a Busy Summer

If there is a serious economic slump brewing on the horizon, at least one industry is refusing to use or be intimidated by the “R” word. In fact, say representatives from the Valley’s two amusement parks, Universal Studios Hollywood and Six Flags Magic Mountain in Valencia, forecasts for attendance this summer are strong, capital expenditures are up and, for the most part, theme parks have a built-in barrier to recessions: it’s called “fun.” But factor in the steep price of gasoline consumers are paying at the pumps, the threat of rolling electrical blackouts across the state and increased competition from a new Disney attraction in Orange County and all of California’s theme parks are facing challenges to getting warm bodies through their turnstiles. Nevertheless, officials at both Valley theme parks are expecting a great summer season. In fact, Six Flags has recently completed installation of three new roller coasters “D & #233;j & #341; vu,” “X” and “Goliath Jr.” and the park is so certain of the impact the new additions will have on the marketplace, it is now changing its unofficial title of theme park to “Extreme Park.” Debbie Nauser, a spokeswoman for the Oklahoma City-based Six Flags Inc., won’t give out financial information on the cost of the new rides, nor will she report attendance figures. But the additions bring the total number of coasters in the park’s collection to 15, affording it placement in the “Guinness Book of World Records” for having more coasters than any other theme park in the world. Universal Studios has also added several new attractions and is projecting strong attendance figures on the heels of an aggressive marketing campaign. “In the last recession we were not super-affected because we find family entertainment continues to remain a priority for our customers,” said Brian Pope, vice president of marketing services for Universal Studios Inc. “This is a real exciting summer for us because we have more attractions coming out this season than we ever have before in any one season.” The Nickelodeon Blast Zone, a 30,000-square-foot water and interactive play area, opened April 6. So did “Animal Planet Live,” which features live-animal performances (monkeys, birds, a bull terrier/lab mix and two cats) and behind-the-scenes attractions from the popular cable show by the same name. And “The Mummy Returns: Chamber of Doom” opened in conjunction with Universal Pictures release of the film, “The Mummy Returns,” on May 9. Nauser said Six Flags Valencia is not reliant on large numbers of out-of-state visitors, drawing roughly 90 percent of its visitors from within about a 150-mile radius. And, because entertainment is typically one of the last things to be cut from many family budgets, gas prices, belt tightening and the potential for park shutdowns caused by rolling blackouts won’t have that strong of an impact. Hayle Kissel, an analyst covering the leisure industry for Merrill Lynch & Co. in New York, said parks like Six Flags continue to do well during economic slumps because they are not considered destination parks, but regional attractions capable of drawing from a strong local base of consumers. And regional theme parks, she said, have always provided a solid option for entertainment at a price that doesn’t threaten to bust a family’s budget at least some families. “The cost of admission for a day at a park like Six Flags is roughly $27 to $28, so for a family of four it’s slightly over $100 for a full day of entertainment,” said Kissel. Both Universal and Six Flags are served by Southern California Edison and subject to blackouts and higher energy bills. “I think it’s going to be a decent year for the local theme parks, but probably not as strong a year as before,” said Jack Kyser, chief economist for the Los Angeles Economic Development Corp. “Because of the blackouts and the high cost of fuel, they will have to work a little bit harder for their money than they thought. The gas prices are going to pull a lot of cash out of the pockets of the consumer, which could have an effect on how they spend their money for entertainment.” Even for so-called destination parks, like Universal Studios, which draws significant attendance from across the country and abroad, there have been few signs that consumers are pulling back on leisure spending. “While some people might drop off the lower end during a slowdown in the economy, there is always a group of consumers that substitutes a weekly vacation to someplace exotic for a vacation that includes a destination park,” said Kissel. “We aren’t expecting any problems at all,” Six Flags’ Nauser said. “Attendance at the park has been great and we think it’s going to remain that way despite any slowdown in the economy. The only thing that has ever really affected our attendance figures in the past has been rain. But we provide great entertainment value for families, and that’s why people will continue to come.” Pope said of Universal Studios Hollywood, “We do think people will get in their cars and spend vacation time in Southern California this summer. So, in addition to the new attractions, we are also trying to make it easier for folks to get here.” From behind the ‘Orange Curtain’ Still, Universal and Six Flags both may also feel a pinch on attendance figures due to the opening of Disney’s new California Adventure theme park, which opened this spring. “There is a real possibility the two parks could see some strong competition from California Adventure. New theme parks tend to get a significant amount of attention, and they have the draw of the other (Disneyland) park nearby,” said Kyser. Six Flags may be too far from Disneyland territory to care, but Universal has already given competition from Disney some serious thought. In February the park launched a shuttle service from the Anaheim area in an effort to pull tourists out from behind the Orange Curtain. The shuttle service is free with the price of a reserved ticket for admission to Universal Studios. Shuttles depart from most of the Anaheim/Disneyland area hotels. And officials from both parks say they have contingency plans in place to deal with rolling blackouts, if they come at all. Both say blackouts won’t affect the bottom line because rides are backed up by generators or, in some cases, can function without electricity. “We’ve already had to absorb costs for energy over the last year, so it’s not new to us,” said Eliot Sekuler, a spokesman for Universal Studios. “And we have generators in place to back up our attractions, should we have to shut something down, so our dinosaurs will continue to roar through the summer.” Nauser said Six Flags was “near completion” of a deal with SCE that would allow the park to reduce its energy consumption enough to exempt it from rolling blackouts. She added that electricity shortages or rolling blackouts do not pose a significant safety threat, and the park intends to get that message out as it rolls out its media campaign touting the new coasters. “It’s not a safety issue for our guests because coasters are gravity-based and they would continue on their normal path, regardless,” said Nauser. “So it’s not a question of endangering anyone.”

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