How to Start Business of Amusement Park cum Water Park?

The amusement and water park business in India is expected to generate revenue more than double. According to the Indian Association of Amusement Parks and Industries (IAAPI), the sector has been increasing at a compounded annual growth rate (CAGR) of 17.5% over the previous several years and is currently valued at around Rs INR 1,700 crore.

A successful amusement park strategy emphasizes the full customer experience, including parking, roller coasters, stage shows, food options, water parks, live animal attractions, arcade games, appealing landscaping, and family-oriented fun. The larger property, the more entertainment options are there for the visitors.

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Establishing an Amusement Park

Amusement Park is considered a capital-intensive business. A successful park invests Crores each year, and frequently much more, on new rides, shows, restaurants, shops, and hotels. Top-of-the-line new attractions can cost up to hundreds of crores.

Statistics say India has 120 amusements as well as theme parks, with more than a dozen small and large projects currently under construction.

In terms of the amount of money required to build an amusement or theme park in a smaller city, the cost might range from INR 1-1.25 crore per acre. Larger projects, on the other hand, may necessitate expenditure ranging from INR 100 crore - to 1,500 crores.

With the change in economic status and lifestyle in the middle-class group, the demand for entertainment parks is increasing. Thus, our new entrepreneurs can think of starting an amusement or theme park business on a small and large scale.

Related Business Plan: Amusement Park cum Water Park

NPCS have gathered all relevant information required to start an amusement park in India –

Initial Guide to Entertainment Park Business

1. Amusement Park Site Location

There are various criteria that developers consider when deciding whether or not to build an amusement park on a particular site.

a) Climate

India has unpredictable weather all-round the year. Therefore, when deciding on an amusement park it is important to know which state and location are appropriate for what kind of theme park? For example, Delhi NCR is appropriate for water parks. The heat wave makes it the right spot to construct a water park. The Essel World is at the right location, Mumbai. Even if rain hits the city, the Essel World is the right way of killing the humid weather.

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b) Population

To build a sustainable market base, an amusement park's site must have enough people to support it. Theme parks are typically found in heavily developed areas with dense populations visiting them conveniently. However, constructing a new theme park in a metropolitan region would result in increased competition as other entertainment enterprises compete for the same consumer base.

Labour costs are also greater in urban regions. In addition, services are more expensive in big cities, making running a park more expensive. Most crucially, land in the most coveted places will be far more expensive to purchase. For an amusement park to succeed, the right site must strike a balance between cost and opportunity.

2. Business Layout

Based on the feasibility report, a business plan must be prepared. Your company's goal, vision, and mission statement should all be mentioned. A marketing strategy should be well-thought-out.

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Total capital investment means of financing, estimated revenue return, and break-even should all be considered in financial planning. You'll need to decide on the park's size, equipment, and staffing, as well as the amount of working capital you'll require.

The following are some of the main areas that must be addressed in your business plan:

· Initial and ongoing expenses

· Customers who you want to target

· a pricing strategy

· Recruiting personnel

· What kind of profit do you anticipate?

· How and where do you look for customers?

3. Acquire Land

The most important resource you'll need is land. The size of the land will be determined by your business plan. Select a large plot of land along the roadside that fits the requirements for storing all of the equipment like a roller coaster, giant wheel, toy train, etc. You can either buy the land or lease it for a long time. If you have a limited budget, consider a tiny indoor amusement park. In that scenario, you'll need to look for a small property land in a good part of town.

4. Legalities

To begin, you must first register your company. The amusement park industry is subject to a variety of permits and safety regulations that vary by state. To run the amusement park, you'll also need to get permission from the government. It's a good idea to check with an attorney about the legalities of running an amusement park. Every state has its Municipality Corporation which permits the opening of an amusement park after the business has provided all important documents.

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5. Documents Required

Identity proof (anyone)

· Pan Card

· Passport

· Aadhar card

· Voter ID card

· Driving license

Proof of Address (Any One)

· Water Bill

· Rent Receipt

· Telephone bill

· Property Letter

· Electricity Bill

· 7/12 and 8-A Extract

· Property Tax Receipt

· Semi-Government Identity Card

· Property Registration Extract

· Description of the applicant’s immovable property

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Mandatory Documents

· NA license

· Food License

· Property card

· Self-Declaration

· Government ID Proof

· Agreement document

· NOC from Fire Brigade license

· NOC from the Electrical Inspector

· License from Public Works Department

· NOC of (State) Pollution Control Centre

· Other required documents by the Entertainment Branch

6. Purchase Equipment

Carefully select the equipment. Choose rides that are specifically designed for children, as well as equipment for teenagers and young people. Equipment should be purchased from reputable vendors. Examine the warranty length, installation costs, and commitments to after-sale service.

· One roller coaster cost INR 445000 in India, with a capacity of 10 people.

· Ferris Wheel range from INR 20,8000 to INR 32,0000 per piece.

You must make food and beverage arrangements inside the park. It's also a different way to supplement your income. You can either open your food court or lease out a portion of your space to a reputable food chain retailer.

7. Hiring Manpower and Setting Up a Pricing Plan

Remember, your finances should also include paying staff every month. When it comes to building an amusement park, you'll need to hire a team of experts to get the job done right. Hire people who have worked in the field before and know what they're doing. It is critical to have proper training in terms of operation, safety, and customer service.

Set up different ticket prices for different age groups. The amusement park should focus on all age groups from toddlers to adults. This will help in generating revenue. Pricing should be done with caution. You might be able to offer group or school guests a discount. Aside from ride-specific pricing, you can also sell full-day or all-ride tickets.

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Conclusion

The main motive of an amusement park should be to provide a safe and friendly entertainment area for all age groups. For safety and structural reasons, rides and attractions require infrastructure and support before they can be constructed. The concrete foundations for theme park rides should be designed and finalised in collaboration with ride manufacturers, builders, and structural experts. The licence is provided by the state government only after proper audits and inspections.

Certainly! Here are five frequently asked questions (FAQs) about starting and running an amusement and water park business in India:

What are the initial steps to consider when planning to open an amusement park in India?

When planning to open an amusement park, consider the location based on climate and population density, prepare a detailed business plan including market strategy and financial planning, acquire suitable land, and address legal requirements including registration and obtaining necessary permits.

How much investment is typically needed to start an amusement park in India?

The investment required can vary widely depending on the scale of the park. For smaller city projects, costs might range from INR 1-1.25 crore per acre. Larger projects in more prominent locations may require investments anywhere from INR 100 crore to INR 1,500 crores.

What are the key legal documents required to start an amusement park in India?

Key documents include identity and address proof, NA license, food license, property card, self-declaration, government ID proof, agreement document, and NOCs from various departments like Fire Brigade, Electrical Inspector, Public Works Department, and Pollution Control Centre.

How can one ensure the safety and compliance of an amusement park in India?

Safety and compliance can be ensured by adhering to all local regulations, obtaining necessary certifications and inspections, and maintaining regular audits. Engaging experienced professionals and conducting frequent staff training on operation, safety, and customer service is critical.

What are the potential revenue streams within an amusement park?

Besides ticket sales, amusement parks can generate revenue from food and beverage services, merchandise sales, special event hosting, and leasing spaces to other businesses. Pricing strategies can include different tickets for various age groups, group discounts, and special passes for unlimited rides.

These questions cover the foundational aspects of starting and operating an amusement park in India, focusing on investment, legalities, safety, and revenue generation.

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