Green Tagged – Theme Parks in 30 for Sept 27
This week on Green Tagged: An update on policies at play in the attractions industry; the latest pandemic proof ideas including flights to nowhere and Driven: A Latinx Artist Celebration; expansions and openings; how attractions in the US and Japan are planning for a longer recovery.
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Policies in Play in The Attractions Industry
This week saw conflict globally between attractions and local governments. On the one hand, governments are buried combating the pandemic. On the other, attractions are shuddered and awaiting guidance on recovery.
Theme Park Operators in Malaysia Call for Removing the Entertainment Tax
The Malaysian Association of Amusement Theme Park and Family Attractions is asking government to remove the 25% entertainment tax as part of efforts to help keep the theme park and attractions industry afloat amid the coronavirus outbreak. The president of MAATFA, Tan Sri Richard CK Koh, said that if the appeal isn’t considered, the theme park and attractions industry won’t survive another year. “This will also hopefully encourage the middle- and lower-class families to come to our parks because they’ll be able to afford the tickets,” he told The Malaysian Reserve.
The President is saying that theme parks are trying to make attractions affordable for middle- and lower-income families. It makes sense to tax people coming into the country, but taxing locals, especially now, inhibits staycations. It would be difficult to do this in the US, but I like the concept and the acknowledgment of a problem that we’re also dealing with here. The president of the Association is saying that he’s trying to encourage locals, and a lot of locals are low income, so how do we address these two things? How do we get in that revenue and have ticket prices the locals can afford?
Theme parks are always trying to find that balance between their local consumer and their tourist consumer. When everybody was traveling, bringing in outside tourists was primary, because they spend more money. However, when that dries up or there are travel ban, theme parks have to rely on locals to make up that difference. A temporary tourism tax is one idea.
Cruise Line Association Members Agree on Safety Protocols While Awaiting Guidelines from the CDC
The Cruise Lines International Association (CLIA), of which Disney Cruise Line is a member, announced a set of health protocols they plan to put in place once the Centers for Disease Control and Prevention (CDC) lifts its “no-sail” order on cruises in the United States.
Highlights of the CLIA protocols include 100% testing of passengers and crew prior to embarkation, mask-wearing, spatial distancing, enhanced ventilation, a greater medical capability, and strict guidelines for shore excursions.
Limiting shore excursions is good for the cruise lines, because they can control which ones take place and get a higher margin on those. Regarding testing 100% percent of passengers and crew for COVID-19 prior to embarking, we’ve seen schools here trying to do mass testing, and that didn’t work because of the delay between when the test is done and when the kids show up for school. It might be the case that passengers must quarantine locally near the ship to shorten the window between test and embarking.
CDC Releases Guidelines on Halloween Events
This week, the CDC released guidelines and risk levels for Halloween events with the caveat, “These considerations are meant to supplement—not replace—any state, local, territorial, or tribal health and safety laws, rules, and regulations about specific holiday gatherings.”
The CDC determined that there are several high-risk Halloween activities including indoor haunted houses and hayrides. Having indoor haunts classified by the CDC as high-risk is a big deal, given that Universal Studios Orlando just extended the open dates for its two indoor mazes. It seems to us that many haunted houses that have reopened, like Fear Factory and HUSH Haunted Attraction, are safer than going to your local grocery store or flying on an airplane. The CDC also pointed out that a costume mask shouldn’t be considered a substitute for a cloth PPE mask. Many haunts are finding ways to incorporate the PPE cloth mask into the masks the performers wear, so we hope the CDC is taking this into consideration when looking at who’s following these guidelines and who isn’t.
Government Refuses to Extend Hong Kong Disneyland Option for Purchasing Expansion Property
The Hong Kong government has refused to extend Hong Kong Disneyland’s option to purchase property adjacent to the park. As part of this decision, the government advised the theme park to focus on the development and expansion of its existing resort in the coming few years rather than expanding geographically.
This has a lot of ramifications for the Hong Kong area, considering that Ocean Park just reopened and has a new executive team with a new direction in mind for the park. The decision about Hong Kong Disneyland is a clear competitive disadvantage. Hong Kong Disneyland has been thin on offerings and received criticism for that reason, so maybe this relates to that.
Meanwhile, the attractions industry in New York, is petitioning Gov. Andrew Cuomo to issue reopening guidance for the industry and House Bill 5134 amends the Carnival-Amusement Safety Act to lower the required age to operate a carnival-amusement ride from 18 years old to 16 years old.
Pandemic-Resistant Ideas
The attractions industry is resilient, and this week saw the debut of many pivots. Let’s explore some of the highlights.
Hyundai Partners with the MOLAA to Create a Safe, Free, Drive-thru Art Experience
Hyundai is collaborating with the Museum of Latin American Art (MOLAA) to create a drive-thru art event. This experience, called “Driven: A Latinx Artist Celebration,” will be a free, outdoor art experience to celebrate Hispanic Heritage Month and will take place from October 1-4 at the Hollywood Palladium Theater in LA. Visitors embark on a journey through South American landscapes, where eight art installations created by multi-generational Latinx artists will be displayed.
We’re encouraged by this event, because we need to make certain we’re not training people away from going to museums and away from having social experiences. This is a great way to not only celebrate Hispanic heritage month but also to train people to get out and enjoy art.
Madame Tussauds Sydney Launches Interactive TikTok Challenges
TikTok is defining pop culture right now, so Madame Tussaud’s putting out TikTok challenges to encourage people to interact with their experiences is a great idea. This isn’t only interactive theater in a virtual age, it’s also phenomenal marketing. It’s interactive, it’s fun, and it expands the experience beyond the confines of a traditional museum. TikTok is embroiled in government controversy in the US right now along with other apps from China, so it’s an interesting stance for Madame Tussaud’s to take by effectively siding with TikTok by launching its campaign on it.
Flights to Nowhere Sell Out
There are a number of airlines in several countries that are offering short flights that take off and return to the same airport. On one of these “flights to nowhere,” which the airline calls the “dine and fly” program, Royal Brunei serves local cuisine to passengers while flying over the country. Qantas recently announced an 85-minute flight to nowhere over Australia, and that flight sold out in 10 minutes. Earlier this month, the Taiwanese airline EVA Air filled all 309 seats on its Hello Kitty-themed A330 Dream jet, and Japan’s All Nippon Airways had a Hawaiian-resort-themed, 90-minute-flight with 300 people on board.
We’re thinking that cruise lines should look at this model and start offering cruises to nowhere.
Expansions and Openings
It’s not all doom and gloom – some existing attractions are moving forward, and new attractions are opening. Our instinct during a recession is to save money. The first move most companies make is to cut marketing. Budgets are good, but you can’t cease your activity. Focus is the key.
Area15 Officially Opens in Las Vegas
Area15 is an experiential, next-gen mall in the Las Vegas desert that seeks to bring the experience economy from one-off stores or sites into an immersive, holistic single location.
Tokyo Disneyland Expands
New attractions, restaurants, and shops will open at Tokyo Disneyland on September 28, 2020, marking the largest expansion of the park’s history. This large-scale development will stretch across Fantasyland, Tomorrowland, and Toontown—three of the park’s seven themed lands—transforming them into new magical experiences for guests three years after breaking ground.
New Amusement Park Planned for Macao in 2021
Plans to build an amusement park at Hac Sa Beach in Macao, China, have been unveiled. Set to debut in 2021, the leisure zone will offer family entertainment facilities, youth adventures, and farming experiences.
Florida's Orlando Forum to Launch New Halloween Event
The “Orlando Forum of Fear” event will launch on Oct. 1 at Orlando Forum in Florida. The event will feature “The Dark Seance: A Haunted Dinner Experience” and “Tunnel of the Damned” haunted maze, as well as a special Kids Nights on select dates.
Planning for a Longer Recovery
Speaking of focus, the stories below illustrate what different attractions are choosing to focus on. The Met is closing and focusing on cost-cutting and selling out next year’s season. Meanwhile, an opera in Japan is retooling their theatre. And of course, Disney has announced the major project focus for the next year.
The Metropolitan Opera Won’t Reopen for Another Year
The Metropolitan Opera in New York City announced last week that the coronavirus pandemic has forced it to cancel its entire 2020-21 season. The Met is also using this time to renegotiate terms with the union, a move that has faced much criticism.
Time to Sing Again in the Age of Corona
In Japan, the Hyogo performing arts center opened after running tests on the ventilation system and installing floor vents to create a wall of air between the performers and the audience. It also implemented the use of face shields, plexiglass partitions, and neck fans for singers.
We paired these two together, because, on the one hand, we have the Met, which isn’t going to open for a year, and the Hyogo performing arts center, which figured out a way to make its space safer so it can continue. The closing of the Met will echo throughout the entire performing arts space and the attraction space as well. Then there are organizations that have a different playbook and are figuring out ways to remodel their performance venues to enhance safety, including improving ventilation for indoor spaces, which is a big concern.
Walt Disney Company Unveils Priority Projects Amid Budget Cuts
Walt Disney company announced its priority projects during ongoing budget cuts. The priority projects include: Mickey and Minnie’s Runaway Railway at Disneyland Resort in Anaheim, Avengers Campus at Disney California Adventure, and the Star Wars-Galactic Starcruiser hotel at Walt Disney World Resort in Orlando, Florida.
Attendance at Universal Theme Parks Remains at About 25%
Universal’s attendance at its open Orlando and Japan parks is hovering around 25%, and while Universal is confident in the recovery, many projects are paused. “At the right time, we can invest in theme parks—but not now,” their CEO stated in a recent interview.
We’re seeing attractions increasingly divide into two camps – pivot the experience into something new or minimize losses and coast. Kudos are in order for Hyogo performing arts center for adapting their space and to Disney for releasing a public orientation of focus. We need to always consider pivoting to move in the direction we want to get to. Shutting down should be the last option. Clearly, Disney is looking toward the future by continuing to expand and build. Does that help anybody right now? Probably not, but will it help us in a recovery as we look forward? Absolutely.
