The World’s Hottest Theme Park Regions

Asia, including China, is one of the main growth markets for theme parks such as Shanghai Disneyland. (Photo by Hu Chengwei/Getty Images)

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One of the theme park industry’s leading lights has revealed that he is “closely” watching three regions which are poised for massive expansion.

The past five years have been anything but a walk in the park for visitor attractions all over the world as they were battered by the pandemic followed by a cost of living crisis as governments hiked taxes to cover furlough payments handed out during lockdown.

The theme park industry rebounded quicker than most sectors as its emphasis on escapist experiences appealed to travelers looking for a release after months of being stuck indoors. Environments in theme parks usually can’t be found elsewhere which also helps them to tempt tourists through their turnstiles.

Testimony to this, the Themed Entertainment Association recently announced that the ten biggest park operators attracted 549.9 million guests last year which was 5.5% higher than their pre-pandemic tally in 2019. Three regions in particular are expected to cast the most powerful spell on the theme park industry over the coming years according to the boss of its trade body, the International Association of Amusement Parks and Attractions (IAAPA) which yesterday opened its annual Expo in Orlando, Florida.

“Regionally, we’re watching three markets closely: MENA (Middle East and North Africa) – where major public and private investment is transforming the landscape; Asia (broadly including Southeast Asia, Greater China, Japan and Korea) – where demand and new projects remain strong; and Latin America – a market with growing domestic tourism and investor interest,” says IAAPA’s chief executive Jakob Wahl.

Wahl is a seasoned industry veteran who has a crucial combination of experience with the trade association and its members. His career with IAAPA began in 2009 as Program Manager for its European region before he moved to Germany’s top tourist attraction Europa-Park four years later. He became the resort’s Director of Communications and Manager of Special Projects but returned to IAAPA in 2017 as Vice President and Executive Director of its Europe, Middle East and Africa (EMEA) region. From there he rapidly rose through its ranks in Orlando, becoming its Chief Operating Officer in 2021 and CEO two years later.

Wahl says that IAAPA forecasts “continued recovery and steady year-over-year growth in aggregate attendance over the next five years, driven by new attractions, recovery of international travel and emerging markets.” His work in many major regions gives him an unparalleled overview of the industry and he adds that “IAAPA research and surveys highlight strong near-term opportunities in MENA and continued long-term potential across Asia and Latin America.” It is already bearing fruit.

Last week this reporter revealed that the world’s first luxury theme park, BON at VidantaWorld, will open in Latin America in fall next year. Over in the Middle East, even more development is underway. In Shanghai, a behind the scenes tour of the Harry Potter movies is being built, along with new hotels and lands at Shanghai Disney.

The first Six Flags theme park outside North America will start welcoming guests in Saudi Arabia’s Qiddiya complex on New Year’s Eve before the same site gets Aquarabia, the Middle East’s largest water park, and then an attraction based on anime series Dragonball. Neighboring Qatar is building a $3 billion Land of Legends park while the industry’s crown jewel is coming to the United Arab Emirates (UAE) next door.

Over the past 15 years, the UAE has become home to a collection of the world’s leading indoor theme parks. They are all in the UAE’s capital city Abu Dhabi and are run by government-backed Miral.

As this report explained, thanks to a smart strategy from Miral’s visionary chief executive Mohamed Al Zaabi, each of its parks was a step up from its predecessor. This showed that Miral isn’t complacent and gradually put it on the global theme park map, culminating in Disney selecting the company as the operator of its seventh resort which will open on Abu Dhabi’s Yas Island over the coming years.

“My sincere congratulations to Mohamed Al Zaabi and the Miral Experiences team as well as the The Walt Disney Company,” said Wahl on the announcement of the park in May. “We are beyond excited about what is going to happen there and are looking forward to everything ahead of us.”

There is good reason for the flurry of activity in the Middle East. The fortunes of many countries in the region have been built on fossil fuels but as their reserves have dwindled, their governments have implemented measures to diversify their economies by building up local leisure industries. Theme parks are high on their lists as they are magnets for millions of tourists and, in turn, bring millions of Dollars of new money into the economy. Governments aren’t the only winners from this approach.

Most of the major parks in the Middle East are run by local operators under license in return for a cut of revenues from food, beverage, merchandise and tickets with the brand owners getting a minimum guarantee. This gives them a stable source of income with no associated expenses. Given that the cost of developing a blockbuster park can stretch into billions of Dollars it’s perhaps no surprise that Wahl says “licensing partnerships remain attractive as operators seek proven draw factors and diversified revenue streams. This is a structural shift already visible in project pipelines and operator strategies.”

Likewise, he adds that growth is expected in Location Based Entertainment (LBE) venues which are often smaller than typical theme parks enabling them to be based closer to inner cities with high population densities so that visitors don’t have to travel out of town to them. They “can deliver high guest engagement with potentially lower land and capital needs than a full-scale resort” he explains.

Earlier this year Universal ventured into this territory with Universal Horror Unleashed, a permanent 110,000-square-foot haunted house style attraction in Las Vegas. It has been such a success that a second location has already got the green light and will open in Chicago open in 2027. It follows pop-ups themed to Netflix shows such as Stranger Things and The Witcher, which were also so popular that the streamer has opened permanent venues in Philadelphia and Dallas with Las Vegas to follow in 2027. Even Disney got in on the act in 2023 with a pop-up theme park in Saudi Arabia as this report explained.

Despite billions of Dollars of investment, Wahl says “the industry continues to face challenges from global instability – such as political tensions, economic uncertainty, and inflation – which can impact travel patterns and investment decisions.” However, he adds that “there are exciting opportunities ahead through technology, sustainability and global expansion, as more destinations invest in leisure and tourism experiences.”

The leading operators are using every trick up their sleeve, including Artificial Intelligence (AI), to continue attracting tourists despite the global challenges and uncertain economic climate. While some operators see AI as a threat, Wahl says it is actually one of the biggest changes the industry has faced since he started as it can be used to roll out the red carpet for guests in a way which wasn’t previously possible.

“The rapid adoption of technologies, from advanced ride systems to AI-driven guest services, has redefined what guests expect from a visit and how parks operate,” he explains. Expectations never stand still so operators share best-practice principles almost instantaneously. It enables them to stay at the top of their game but also continuously raises the bar if they want to beat their competition.

“Attraction concepts, intellectual property partnerships and operators are increasingly global, creating faster knowledge transfer and more cross-border collaborations,” says Wahl. In turn, this opens up new markets and, as a result, IAAPA has “seen unprecedented investment in new destinations and large-scale projects around the world, especially in regions that were previously underserved.”

It means that Wahl is busier than ever. In his role as IAAPA’s CEO, he leads its global strategy and operations, from advocacy and member services to global events, research and partnerships. This involves working with regional teams, board, members and industry partners to set priorities, launch new initiatives and ensure IAAPA provides the education and resources that members need to operate safely and grow.

Members include everything from museums, aquariums and family entertainment centers right up to the world’s biggest water parks, theme parks and their suppliers. Wahl explains that IAAPA offers them “education, advocacy, safety guidance and global events. Our biggest achievements include building a worldwide research and education platform for operators and suppliers, producing the industry’s premier Expos which draw tens of thousands of attendees (we recently announced that our brand new Middle East Expo will launch next year), and creating standards, training and advocacy that help to professionalize and grow the attractions sector globally.”

Still a theme park fan at heart, Wahl says he is “excited by projects that push creative and operational boundaries, whether that’s major new integrated resorts in the Middle East, cutting-edge attractions in Asia, or smaller, highly immersive LBE concepts here [in Orlando] and abroad.”

With his trade body boss hat on, he adds that “professionally, guiding IAAPA through periods of growth and greater global relevance – building stronger regional teams, expanding member services and helping members navigate complex challenges – has been deeply rewarding. Seeing individual operators succeed, improving safety and innovating with IAAPA’s support is what I find most meaningful.”

It drives him forward and he says that “in five years IAAPA aims to be an even stronger, more locally embedded partner for members worldwide, expanding regional offices and advisory boards so local issues get local attention, scaling education, safety and sustainability programs, and deepening research and industry data so members can make better decisions. In short, more localized presence, better member services, measurable impact on safety, workforce development and sustainable growth.” With the dark days of the pandemic behind him, Wahl has set the stage for the industry to have a very happy ending.