Amusement Index Is Positive Theme Park Stats Offer Entertaining Economic Barometer

In this year of mixed economic signals, one of the more unorthodox economic indicators is sending out good vibes.

Many economic analysts consider amusement parks to be a pretty good economic barometer. And it is clear that the cyclical business of thrills is currently in a good cycle. That is, for now, because this is a business well-suited for the wild gyrations of a roller coaster.

After some inconsistent, recession-hampered performances in the early 1990s, attendance at theme parks nationwide is strong. Though Walt Disney Co., the industry leader, does not disclose specific figures, a spokesman said attendance is “excellent.”

“Theme park and resort revenues increased 20 percent in the most recent quarter and, for the nine-month period, revenues increased 14 percent,” Ken Green, Disney’s chief spokesman said last week.

Part of the success at theme parks nationwide is due to the weather and to an economy that may scare some people away from pricier destinations and attract them to shorter, closer-to-home, less-expensive regional theme parks.

“Families are looking for day trips and the weather this year has cooperated,” said Stephen Roberts, an analyst with Roney & Co., in Detroit.

Another factor, analysts say, is how the parks have learned to market and promote themselves as entertainment facilities that change from year to year, and change with the times. New and faster rides are still a big focus, but not the exclusive focus of the parks.

Robert Pittman, chairman and CEO of Six Flags Entertainment, said attendance at the Six Flags parks in the metropolitan regions of Chicago, New York, Los Angeles, Dallas, Houston, Atlanta and St. Louis is up more than 33 percent to between 24 million and 25 million a year, from 18 million during the 1991 season. He declined to give specific figures on the 1995 growth, but it is believed to be in double digits.

“You have to keep pushing it hard and aggressive every year, and you have to make the parks different every year,” Pittman said. “When you open up, you want people who are regulars to walk in and say ‘Wow, that looks great, that’s new, that’s different.”’

Time Warner Inc., burdened by heavy debt, sold its majority interest in Six Flags in April to a Boston-based investment group for about $1 billion. Pittman will leave his position at the end of October, but he remains bullish about the future of the parks.

“People are looking for cocoons outside the home - amusement parks are the ideal cocoons,” he said. “They are predictable and safe, and you know what you are going to get. Their future is terrific.”

Last year, only three of the nation’s top 10 theme parks showed attendance gains, according to Amusement Business, the Nashville-based trade magazine that tracks the industry. Year-to-year change, though, is the nature of the business. The attempt to broaden the parks’ appeal is part of an effort to reduce their vulnerability to economic cycles. Only time will tell whether the current upturn is part of a more lasting performance.

“The last two years have been real turning points,” said Tim O’Brien, an editor at Amusement Business.

Why? Because parks have learned to broaden their appeal and encourage people to spend more money inside the gate on better-quality restaurants, upscale merchandise and special events like fireworks shows.

“The days of the rubber frog and the plastic snake are still here, but now you’ll find a lot of pewter and clothing,” O’Brien said.

The Six Flags parks are within a day’s driving distance of 85 percent of the nation’s population and, Pittman argues, are positioning themselves to be almost recession-proof. They tend to benefit when big-ticket destination travel is postponed.

It is not clear how far park operators can push the prices up without risking the losses at the gate. The average price for a family of four to visit an amusement park this year is just under $120, according to an Amusement Business annual survey of 25 parks. The survey does not include the Disney facilities, which are generally more expensive than their competitors.

“We’re wondering how far it can go,” the magazine’s O’Brien said.