Dubai Parks operator sticks with 2017 revenue forecasts
The successive launches of theme parks should deliver Dh2.4b next year, says DXB Entertainments
Dubai: With two of its attractions opening on schedule (October 31) and a third due for this week, the holding company for Dubai Parks and Resorts confirms it is on track for revenues of Dh2.4 billion in 2017, which will be its first full year of operations. But there will be a “slightly” higher than estimated cost component, DXB Entertainments said in a statement. This it attributes to an increase in staff and facilities management costs.
“The company continues to identify means to mitigate these costs,” the statement added. (By end September, it had just over 1,800 staff.)
“Our financial position remains strong — our total assets stood at Dh12 billion as at September 30, primarily comprising Dh8.4 billion in property, equipment and investment properties,” said Raed Kajoor Al Nuaimi, CEO.
“Our marketing and sales strategy is fully established and focused on generating ticketing and package revenues from both international tourists and residents. International sales, forecast to generate approximately 70 per cent of visitors, will be driven by Dubai Parks and Resorts’ marketing presence in Saudi Arabia, UK, Germany, India, China, Nigeria and Russia, as well as through the 125 destination management company agreements and 70 tour operator agreements signed.
“We are also targeting the UAE market with a range of marketing strategies to build awareness and encourage ticket purchase from residents and in-market tourists.”
Bollywood Parks Dubai is opening on November 17 and the Legoland Water Park “shortly thereafter”, and closing with the launch of Motiongate Dubai on December 16.
“The company also aims to create long term shareholder value by leveraging existing expertise to provide project management services or operational experience to select companies,” said Al Nuaimi. “Within this scope the company has signed an MoU with Meraas to provide expertise for select projects currently under development by Meraas, including the Dubai Arena which is being built as part of City Walk Dubai.”
Dubai Parks and Resorts includes four theme parks (with the Six Flags cluster opening in late 2019), one water park, a 504-key hotel and a retail and dining district with 234,000 square feet of leasable space. On the leasing side, it has signed up for 84 per cent of the space at Riverland Dubai.
