of Amusement Parks & Industries,
Sector - 11, Bldg No. B/32,
B-103, Shanti Nagar,
Mira Road (East),
Mumbai - 401 104. India
Tel: +91-22-5690 7426/2812 1494
Fax: +91-22-5690 7427
The All India Association of Industries,
Mumbai - 400 009
Tel: +91-22-23412632/23412643/ 5645305/5645306
Fax: +91-22-341 5685/345 1662
Email : email@example.com
the surge in India's middle classes, the family entertainment and amusement sector
of the India economy holds out promise for investors, both domestic and foreign.
at the start of 2001, this industry incorporated an investment of Rs. 1,000 crore (1 crore = 10 million). Currency
2001-04, the industry is expected to grow three-fold in terms of both number of parks and total investment intake.
Between 2001 and 2005, an estimated 400 new parks in this category are expected
to be built all over India.
as at the start of 2001, there were no rules specific to the development of amusement parks. Businesses wanting to enter this sector had to
get as many as 19 renewable no-objection certificates annually.
of the existing and planned or under-construction amusement centres are being developed by Indian entrepreneurs using amusement equipment
available off-the-shelf in the United States and Europe.
There is no legally defined requirement of area for amusement parks in India.
But, the general norm is that a population centre of six million people can be served with an a park covering an area of 40-60 acres.
Foreign direct investment (FDI) in India's amusement parks sector is inhibited
by low gate fees (currently varying between Rs 30-250 per person. In some parks, such as Essel
World and Water Kingdom (85 acres) in Mumbai, the gate fee is on the higher side but most games (expect the water games) are covered
by it. In contrast, Calcutta's Nicco Park (40 acres) has a relatively low gate fee but many of the games are separately charged.
Foreign companies reportedly interested in the Indian amusement parks market
include Universal Studios, Time Warner and Disney.
According to the Indian Association of Amusement Parks
and Industries, a park can be profitable if revenues from gate collections and other sources (such as food, toy memorabilia sales)
reach a 50:50 ratio. However, in Essel World and Water Kingdom in Mumbai, the ratio still stands at 70:30
in favour of gate collections.
The industry is campaigning for lowering land costs and entertainment
taxes. Industry spokesmen point at the Ocean Park in Hong Kong which was provided free land and soft loans by the government. They also
point at Disney park in the United States where 3,000 acres are being reclaimed from the sea for which Disney will pay only 20 per cent
of the investment.