Middle East attracts international amusement industry as DEAL 2007 opens

The International Association of Amusement Parks and Attractions (IAAPA) has earmarked the Middle East region for high growth in leisure and amusement infrastructure.

In its recent report, the highest international body in the amusement industry is hugely optimistic about the sector's growth in the Middle East, clubbing the US and Western Europe as saturated markets as far as the development of theme parks and leisure facilities is concerned. The association has drawn the attention of the international developers, suppliers and operators towards the region, as a lucrative market for theme parks, leisure and amusement development.

Organised by International Expo Consults (IEC), the show was inaugurated by HE Mattar Al Tayer, Second Chairman of the board of Executive Directors of RTA.

From the latest inflatable machines, roller coasters, joy rides, water rides, family rides, rotating wheels, vending machines, to the latest electronic games and simulation gadgetry, the largest ever contingent of international exhibitors has put together a fascinating display of products across 50 different categories.

The exhibition is also showcasing the auxiliary machinery that is either employed during the making of amusement structures or is related to the industry. Companies involved in operating, maintaining and managing the amusement facilities are also part of the exhibition.

Apart from the business deals signed during the show and the leads created, the 2007 edition of the show offers a unique platform for the leading players in the amusement and leisure industry to meet with potential buyers, present customers, dealers, real estate developers and consultants. The show provides the most insightful preview of the market and amusement trends in the region.

Commenting on the growth of the industry and the show Mr. Abdul Rehman Falaknaz, President IEC said, ' With $10 billion revenue earning and 27 percent annual growth, leisure and amusement industry in the Middle East is a big market for leading international players, which includes the manufactures of leisure equipment, suppliers and the developers of amusement infrastructure. International companies faced with the shrinking markets in the developed world see mega bucks as Middle East's tryst with amusement and leisure infrastructure continues unabated. From exclusive theme parks to mega mix use projects, amusement and leisure facilities have come to occupy a central focus. Huge investment is flowing into the leisure and amusement infrastructure all across the Middle East.'

Almost all the mega projects are centered on the concept of attracting global tourists, creating holiday homes and self sufficient residential communities that also cater to entertainment needs of the residents. The limitless business opportunities have reflected well on DEAL that has been growing by 20 percent, year-on- year. This year, a majority of participating companies come from the US, UK, Italy, Netherlands, Belgium, Canada and Germany. Many of these companies are involved with prestigious projects like Disneyland in USA, Gold Coast in Australia etc.

The 2007 edition of the show will also showcase the specialized product range for individual sectors like water amusement, infotainment, mall amusement etc, a need driven by fragmentation of the amusement industry itself.'

Indoor Entertainment

The leisure and amusement sector across the Middle East is hugely benefiting from the concept of family entertainment as greater facilities are coming up for family destinations with a major focus on children. The latest addition in this series comes in the form of a recently announced $1 billion global theme park project to be built by the US-based Marvel Entertainment Group that will bring a full library of its Super Heroes to Dubai.

Projected as the best family entertainment destination in the world, the theme park would be to be followed by many additional leisure projects throughout the pan-Arabia region. According to the recently released Global Entertainment and Media Outlook report by PricewaterhouseCoopers, LLP (PWC), the attendance at parks in Europe, the Middle East and Africa is expected to grow from 131 million visitors in 2004 to 147 million in 2009, a 12 percent overall increase.

Moreover, the tremendous increase in the retail space, adding around 4.6 million square metre of retail space to GCC's total in coming years with Dubai alone accounting for 1.2 million square metres of additional floor space, is bound to fuel the demand for amusement infrastructure. By 2016, the retail space is expected to occupy 15 million square metres from its current occupancy at 5.3 million square metres. As GCC countries race to beat each other in the numbers of shopping malls, the demand for mall amusement is sure to rocket.

'As shopping malls across the Middle East fight it out for visitor attention in a highly saturated retail market, leisure, entertainment and amusement can create a bottom-line difference in marketing exclusivity. This trend has already gained ground with the Ski - Dubai becoming the USP for the Mall of Emirates. What Magic Planet did to the Diera City Centre, Ski Dubai did to the Mall of Emirates ,' observed Mr. Falaknaz.

Mr. Prakash Viveknand, Director of Dubai-based Amusement Services International- the largest player in the regional amusement industry specializing in turn key amusement solutions right from the designing of the project to the equipment supply and further to the operations of the facilities explained, 'On an average 5-7 and even 10 percent of the space in any retail development across the region is being devoted to family entertainment areas. Entertainment and amusement is fast becoming the anchor for shopping malls across the region. Every retail development is working to evolve a unique entertainment concept.'

Reflecting on the industry Prakash said, 'As far as the Middle East is concerned, the amusement industry is in for a huge leap in the next two to three years. The indoor leisure and entertainment sector will lead the way as the best of outdoors is coming indoors. This includes huge roller coaster rides, water amusement, simulation gadgetry etc. A very conservative estimate of the investment going only into indoor amusement development would be something in the range of US $ 80 to 100million.

He added, 'In addition to the retail-amusement mix, exclusive outdoor theme parks and entertainment developments are coming up in a big way. Developers of major entertainment destinations are working on modern facilities like providing temperature controlled ambience to beat the harsh weather conditions.'

Prakash forecasts a rapid emergence of lifestyle entertainment across the region that is closely linked to the retail segment, 'There has been a huge growth in the number of people seeking lifestyle entertainment and people are willing to spend for the right experience. Now you need to have good entertainment and amusement facilities to make the food courts do business or to sell the branded merchandise.'

New Trend

Commenting on the new trend of theme projects, Prakash said, 'Today the customer demands a unique experience from everything he does. This need is driving the development of exclusive experience projects as the hugely competitive sector fights for visitor traffic. This trend is only going to get stronger.

Also the success of various exclusive large format entertainment project despite the skepticism, has spurred the industry to think big. The big players in the industry, including us, are looking forward to replicating the success across the region and also beyond, in surrounding countries that look up to Dubai for latest concepts and designs like India, Iran and Eastern Europe. These countries can emerge as important amusement export or report destinations for Dubai.'

Some of the major amusement developments in the Middle East include US$ 3 billion Attractions and Experience World - part of the Dubailand that will house 12 theme parks, the Falcon City with its 8 wonders of the world, the City of Arabia, the Legends, the Restless Planet & Dubai Sports City, in Dubai alone, Durrat al-Arus in Saudi Arabia- the third largest recreational city in the world; the Entertainment City in Qatar, Iceberg Towers in Bahrain at a cost of US $175 million apart from others.

'DEAL is definitely benefiting from Dubai's strategic position that enables it to tap surrounding markets like the Levant, Iran, Eastern Europe, Africa, Asia and the Indian Subcontinent. Dubai has evolved into an international trendsetter in the leisure and amusement industry, countries looking forward to creating new amusement facilities or upgrading the old ones, can benefit from the latest innovation showcased by the industry leaders. The fast growing Asian amusement industry is looking forward to benefit from Dubai's success, is evident from the ever increasing Asian exhibitor and visitor profile in the DEAL,' added Mr. Falaknaz.

Pricewaterhouse Coopers, LLP (PWC) expect the Asian amusement industry to generate $8.1 billion in revenues by 2009 with attendance growing from 236 million in 2004 to 276 million in 2009, an estimated 21 percent increase.
As quality and safety are of paramount importance in any amusement related infrastructure, Deal 2007 has specially focused on this aspect. Majority of the participating companies are ISO certified and follow the highest standards of quality and safety instructions.

Some of the prominent names showcasing at DEAL 2007 are Dubai-based Amusement Service International, which that operates in Middle East, Northern Africa, Indian Subcontinent and Europe; Vekoma Rides Manufacturing from Netherlands- one of the world's leading designers and manufacturers of roller coasters, high-thrill and family rides with a family of successful all-time favorites such as the Boomerang, Suspended Looping Coaster, Suspended Family Coaster and Junior Coaster and responsible for innovations like the Motorbike-Launch-Coaster, the innovative Splash Party, Pandora's Box, Spinning Coaster as well as many custom designed rides installed world-wide; Zamperla from Italy which won the IAAPA's Best New family Ride for its family ride Demolition Derby operates in four continents and is major operator in Disneyland -USA; 3DBA theater that is credited for the creation of the state-of-art 4 D theatre: Aqua Leisure from UK specializing in water amusement; and Ronald Bussink Professional Rides that are credited for the creation of the giant wheels and are involved multi-billion dollar amusement projects worldwide, including the 100 million Gold Coast project in Australia.