NEWS | IAAPI requests PM to save Amusement Park Industry from Economic Roller-Coaster Ride
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The premium Himalayan destination resort is all set to offer an immersive stay experience for the discerning travelers
Amusement parks contribute nearly 40% of the total leisure industry turnover which are key drivers of growth among the service sector in India. Approximately, 30-35% of visitors are outstation visitors and thus a major source of tourism. The Indian Association of Amusement Parks and Industries (IAAPI) is a major part of the travel, tourism & hospitality sector as amusement parks in India attracts more than 3 crore visitors annually and growing at a compounded annual growth rate (CAGR) of more than 17.5% with annual revenue of approximately INR 17 billion, providing direct employment to over 75,000 people. In India, amusement parks generate 60% - 65% from gate income (ticket sale), 30% - 35% from food & beverages, and 10% - 15% from merchandise and are now suffering losses due to the black swan event encountered by the world.
Moreover, the Indian theme park and amusement park sector contributes significantly to the local economy as well as tourism while giving new avenues of entertainment of international standards to Indians with slim margins & incurring of fixed costs of operations, manpower, fuel makes operations unviable as parks operate on a seasonal basis with low footfall in monsoons. Now, this industry turnover is sinking.
This industry which is taking baby steps in India got suddenly hit by the pandemic, which is running out of working capital and is finding it difficult to meet its financial obligations such as staff salaries, advance tax, GST, PF, ESI, and other state levies, loan interest and installment payments. Sustaining business in such an environment has become a major concern and the industry is now struggling for its survival. The amusement industry is in dire straits and is now facing acute financial distress and bankruptcy, closure of businesses, and massive job losses.
The Amusement industry shall play a major role in creating employment, both directly and through ancillary and other related industries like hospitality, food & beverage, transport industry and more. It will create an economic multiplier effect accelerating the growth of the economy. The industry will employ a sizeable number of people directly and indirectly and contribute to the Government exchequer significantly. It will also form a major part of social infrastructure which plays a vital role in nation-building as it offers active outdoor recreation for kids, youth and families from middle and lower-middle-class strata of the society. The industry is on the verge of collapse and needs instant emergency support to rescue and bail out the entire amusement industry from the prevailing turbulent environment. The only way this can happen is by reducing fixed operating expenses significantly in the immediate term till consumption in the sector bounces back and the economic activity revives. The amusement park industry runs on the sole purpose of creating happiness and bonding. Let’s save this industry which has brought a smile on many faces and plans to do so in the upcoming certain & uncertain times.
