Gaming arcades, bowling alleys, miniature golf course, theme parks, petting zoos, soft play areas and indoor entertainment zones — the range of leisure and amusement opportunities are endless.
According to a report by Global Industry Analysts, the global theme park market is expected to reach $31.8 billion (about Dh116 billion) by 2017 and the Middle East, Asia Pacific and Latin America are poised to see the biggest growth during this period.
The GCC countries are on an overdrive, creating some of the biggest family entertainment centres (FECs) in the region. “Leisure is key in today’s lifestyle and we believe that a heady mix of shopping, eating and entertainment is essential for any mall,” says Neelesh Bhatnagar, Director, Oasis Centre.
“The trend is towards New Age retail entertainment where a large retail entity supports an entertainment zone that includes not only rides but cinemas, food and beverages among other forms of entertainment,” Abdul Rahman Falaknaz, Chairman, International Expo-Consults (IEC), tells GN Focus.
Irrespective of the location and size of a retail establishment, entertainment and amusement have become must-have features. So the game changer for any project would be a state-of-the-art entertainment zone, says Falaknaz.
IEC organises the Dubai Entertainment Amusement and Leisure Show (Deal), which starts today at Dubai World Trade Centre. It is expecting exhibitors to bring new products and technology to the show and visitors can attend seminars, presentations and panel discussions with sector experts.
“A satisfied customer is one of the pivotal driving factors for any industry. In leisure, it is even more pertinent given that we sell an experience,” Silvio Liedtke, Chief Operating Officer, Landmark Leisure, tells GN Focus. The company’s extensive consumer research conducted over the past few years reveals that the top four factors a customer seeks when looking at a leisure offering are uniqueness, variety, excitement and safety.
The UAE connect
As a leading regional commercial hub with state-of-the-art infrastructure, world-class business environment, strategic location and a promising economic outlook, the UAE’s leisure and entertainment sector is bound to flourish.
“The UAE plans to invest several billion dollars in the amusement sector. This is a great opportunity to blend into the country’s leisure industry and early movers will surely benefit in the long run,” says Sharif Rahman, CEO, IEC. “You can go to an outdoor theme park about twice a year, but you’re more likely to go to the mall every week and therefore indoor entertainment zones become game changers.”
Research by the Dubai Chamber of Commerce and Industry shows that the UAE’s tourism sector will see a 6.5 per cent growth annually between 2011 and 2021 and 74.7 per cent of the country’s tourism spend in 2011 was on leisure activities. With the Expo 2020 win, these trends will only follow an upward trajectory, says Liedtke.
But the main anchor supporting the amusement industry in the region is FECs. “Consumers can make retail purchases from smart devices. But what drives people to brick-and-mortar retail stores is not only the product but also the leisure and entertainment facilities in a mall or any indoor retail environment,” says Falaknaz.
Why it works
The leisure and entertainment industry is fuelled by innovation and technological advancement and the UAE has an excellent track record of bringing exciting new concepts to the market.
It is not surprising then that entertainment has become the next big draw — thus the concept of retail-tainment, says Prakash Vivekanand, Managing Director, Amusement Services International (ASI), an international leisure and entertainment design and operations services provider.
“Leisure goes hand in hand with retail but it is hard to say which is driving what.
“The fountains and aquarium at Dubai Mall, the ski slope at Mall of the Emirates, large format indoor theme parks such as Magic Planet or Fun City, combined, with world-class F&B options are the key drivers that influence visitor footfall.” According to ASI, the UAE amusement business generated revenue in excess of Dh1.1 billion in 2012. The industry registered a revenue growth of 7 per cent in 2013, which is expected to sustain through 2014-15.
“We expect more than Dh20 billion to be invested in the leisure business across Mena in the next five years with the UAE leading the way, followed by Saudi Arabia, Qatar and Egypt,” says Vivekanand.
“People want to be surprised, amazed and entertained in addition to enjoying high standards of quality and service, so original concepts and unique and interactive experiences are very successful,” says Adam Alexander Page, Vice-President Group Marketing, Ilyas and Mustafa Galadari Group. The brand’s $1-billion project, IMG World of Adventure (IMGWOA) features several firsts in terms of rides and activities.
The Middle East is regarded as a world leader in indoor FECs. “The region’s climate makes outdoor play unsuitable for most of the year. FECs in malls replace the playgrounds that children in other parts of the world are accustomed to,” says Liedtke.
Landmark Leisure has set a target of establishing its presence in 100 locations in the next four years, making it the largest indoor entertainment operator in the Middle East and India. “We will invest more than Dh400 million in the next three years across the Middle East, including foraying into Saudi Arabia next year,” says Liedtke.
Last year Deal hosted 272 firms from 33 countries and attracted close to 6,000 trade visitors. “All exhibitors bring the latest technology and innovations to the show whether it is rides, cinemas or any other product. So when you visit a mall or theme park you will see new rides each year to maintain consumer interest,” says Falaknaz.
