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Amusement Parks and Entertainment Services in India: ISIC 9219

Industry Overview | 01 Mar 2011


  • The entertainment business is still at an early stage of development in India, yet industry sales soared by an average 14% per year since 2000, generating revenue of INR112 billion in 2010.
  • Cultural attitudes within India are changing, and local amusement parks are experiencing a boom in demand for their services. The increasing incidence of Cable TV is exposing the population to a wider range of recreational pursuits. The idea of an annual family holiday to the home village is being overtaken by more frequent weekend visits to recreation facilities within and around the cities.
  • The amusement park category is the largest revenue earner within Indian entertainment, generating sales of INR41 billion, which by the end of 2010, was equal to 36% of all industry turnover. The sector is developing throughout India, but the major projects are planned in the metropolitan cities, their suburbs and other major cities in western and northern India. The major cities in southern states like Hyderabad, Bangalore, Mysore, Cochin and Tiruvananthapuram are also showing increased activity. However, projects in eastern India are limited to Kolkata in West Bengal and Bhubneshwar in Orissa.
  • Most 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 US and Europe.
  • Film-based theme parks are becoming the next big trend in entertainment. A tried and tested formula in Hollywood, many foreign film studios such as Disney, Universal and Paramount have long since capitalised on film-based amusement parks. Disneyland already has a presence across the US and Hong Kong and Universal Studios too has theme parks in Orlando, Hollywood, Japan and Spain. The makers of Harry Potter also opened The Wizarding World of Harry Potter, a mini-park inside Universal’s Islands of Adventure theme park in the US in 2010. Now many Indian producers are considering setting up amusement parks around their film sets to attract tourists as well as make some good money.
  • A few Hollywood studios are eyeing India as a prospective destination in which to set up theme parks over the first three years of the forecast period. However, the entry of foreign studios depends on the incentives and benefits doled out by the government. Land acquisition is the key problem, as an amusement park typically requires 10-12 acres of prime property and a locale that is well connected.
  • The largest entertainment parks in India include Essel World, Veegaland Park, Water Kingdom, Ocean Park, Fun ‘n’ Food Village, Adventure Islands, Gujarat Science City, Platinum Resorts and others. Essel World is India’s answer to Disney Land. It is the largest amusement park for children, spread over a sprawling 64 acres, at Gorai, which is one hour from Goregaon Mumbai. It offers more than 45 rides and games. Meanwhile, the Water Kingdom is said to be the largest of its kind in Asia.
  • There are a number of travel agencies which operate daily package tours to Essel World and Water Kingdom which includes transport, entry charges and all rides, with food costs optional. The entrance fee normally includes a fixed number of rides, which include the standard roller coaster and adventure themes, plus a water world section for children.
  • Organisation and promotion of arts events is another significant industry category, stably accounting for around 30% of all industry revenue during the review period. This is also the major business-to-business revenue earner, as Indian theatre and musical companies are increasingly outsourcing event promotion activities. By 2010, corporate clients accounted for 63% of all industry revenue, after growing by 20% per year in value terms since 2000.
  • Given the surge in India’s middle class, the amusement park and entertainment industry of the Indian economy holds out promise for investors, both domestic and foreign. Global leaders in entertainment parks and attractions such as Universal Studios, Disney, Sony and Ripley Entertainment are mulling over investments of billions of dollars in India considering the vast potential in this region.
  • The current size of the consumer group for the amusement park and entertainment services industry is estimated at 25-30 million. This reflects a middle upper class with a monthly disposable income in excess of INR4, 800. However, with a population of 1 billion, 30% of which is under 20 years, and economic growth set to continue at 6% per annum, the number of consumers can only increase. Revenue generated by the local entertainment industry is therefore projected to grow further, by 16% per annum over the forecast period, to reach INR278 billion by 2016.

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