European Amusement Parks and Attractions Driving leisure and tourism 2014 Foreword Welcome to IAAPA Europe’s manifesto. We want to give policymakers a clear idea about what matters to our industry. On the following pages you will find information on what our sector needs to make an even greater contribution to European tourism. This matters because behind the fun and escapism of a day spent at an amusement park or attraction are some hard economic facts and figures: • 149 million guest visits per year in Europe • 53,100 full-time employee equivalents in the EU • €10 billion direct and indirect economic impact • €1.2 billion paid in direct and indirect taxation. Andreas Andersen We’re also a sector that is capital intensive; we need to invest in European Advisory new and existing rides to keep guests coming back to our parks Committee Chairman and attractions. This rate of investment has not reduced even during Director, CEO and difficult economic times. Very often this investment stays within Europe President of Liseberg as most suppliers of new rides are based here. Sweden In fact it’s often overlooked that our sector and its associated supply chain has a long and proud European heritage. My own park, Liseberg, opened its doors to visitors at the heart of Gothenburg in 1923 and across the border Tivoli Gardens in Copenhagen opened in 1843. Europa-Park in Germany, the second largest amusement park in Europe, is owned and managed by a family that has been in the business of amusement park rides since the 18th century. There are many more stories like this in our industry, which underlines the deep roots that our sector has in Europe. Europe also boasts incredible diversity. Our sector ranges from world class destination parks like Disneyland Paris to small and medium-sized theme or amusement parks, attractions, water parks and family entertainment centres. Collectively they constitute a thriving European industry. IAAPA Europe is publishing this document to help stimulate constructive engagement. We invite policymakers and other stakeholders to start a conversation with us about our sector. Welcome to our world! 1 All figures based on IAAPA Europe’s Economic Impact Study which uses the latest available industry data. 2 Distribution of IAAPA Members Across Europe 16 13 24 3 31 6 116 112 15 115 39 4 5 2 69 16 21 2 1 79 2 5 47 2 3 0 IAAPA Europe - member associations AEPA - Asociación Española de FFD - Foreningen af Forlystelsesparker SNF - Svenska Nöjesparksföreningen Parques de Atracciones y Temáticos i Danmark (Swedish Amusement Parks’ (Spanish Amusement and Theme (Danish Association of Amusement Association) Parks’ Association) Parks) TEA - Themed Entertainment AFEMO - Spanish Amusement EAASI - European Association of Association Suppliers’ Association Amusement Supplier Industry ToerNed - Association of Dutch ANCASVI - Associazione Nazionale EWA - European Waterpark Tourist Attractions Costruttori Attrezzature Spettacoli Association VDFU - Verband Deutscher Viaggianti FPA - Finnish Parks’ Association Freizeitparks und (Italian Amusement Suppliers’ Freizeitunternehmen E.V. Association) Horeca KHN - Dutch Hotel and (Association of German Amusement Restaurant Association ANESV - Associazione Nazionale Parks) Esercenti Spettacoli Viaggianti e RAAPA - Russian Association of VDH - Verband Deutscher Parchi Amusement Parks and Attractions Hallenspielplätze (Italian Parks’ and Showmen’s RECRON - Association of Dutch (German Association of Indoor Association) Leisure Entrepreneurs Playgrounds) BALPPA - British Association of Leisure VDV - Verband Deutscher Parks, Piers and Attractions SAPIR - Russian Union of Vergnügungsanlagenhersteller Associations and Partners of BARM - Benelux Amusement Ride (German Association of Amusement the Amusement Industry Manufacturers’ Association Machinery and SNELAC - Syndicat National des Accessory Manufacturers) BELGOPARKS - Belgian Association of Espaces de Loisirs,d’Attractions et Amusement Parks WWA - World Waterpark Culturels Association BOVAK - Dutch Showmen’s Union (French Association of Amusement Parks and CulturalAttractions) CLUB van ELF - Dutch Association of Leading Visitor Attractions 3 Safety: Our Number One Disneyland Paris: safety first! Priority Disneyland Paris takes a rigorous approach to safety with more than 15 million visitors per year. Guests’ and employees’ safety is paramount to our industry - owners, operators and suppliers alike. Safety starts with design. Rides are manufactured by experienced engineers. The In fact, visiting an amusement park is one of the safest production process is quality controlled and forms of recreation available to the public. the final installation is tested and inspected by local control officers before operation can Industry safety performance is monitored regularly by begin. Throughout a ride’s life it is thoroughly IAAPA Europe’s European Ride Safety Reporting System maintained taking into account regulatory which collects ride incident data. obligations, relevant risk assessment and Our latest data shows that there were close to 150 industry best practice related to prevention. million visits to parks during 2012 and more than one billion rides were taken. Meanwhile, the risk of being Aside from the physical maintenance of rides, injured at a park is one in three million. This makes a parks like Disneyland Paris have to control visit to one of our members as safe as playing basket- the human factor by communicating access ball or taking a bike ride. conditions and risks and integrating the specific needs of disabled guests. They also need to be We want to maintain and wherever possible improve able to deal with and anticipate inappropriate this safety record. For this reason the attractions industry behaviour, which can often be the primary took a leading role in developing the first ever Euro- reason for accidents. They also plan for the pean standard on amusement park safety: EN 13814 unexpected, like emergency situations and Fairground and Amusement Park Machinery and exceptional climatic conditions, which can Structures, which complements national legislation and have an impact on the safety of guests. certification schemes across the EU. It was published in 2004 and has been adopted by the industry. All of this needs to be applied on a consistent basis and evolve to keep pace with new EN 13814 specifies the minimum requirements neces- technology and ride innovation. Operating sary to ensure the safe design, calculation, manufac- procedures and staff training programmes need ture, installation, maintenance, operation, examination to be constantly reviewed and updated. and testing of both temporary and permanent amuse- ment devices. Parallel standards cover water parks and A thorough audit programme is in place to playground structures. ensure that prevention standards are The complexity of rides has evolved considerably comprehensively applied. since 2004. Today industry best practice exceeds the minimum requirements of EN13814 by a considerable degree. What we want from policymakers • An update of the EN13814 standard to reflect technological developments in the industry. 4 Disneyland Resort Paris, Marne-la-Vallée, France Fair and Equitable Value The negative impact of a rise in VAT: Added TAX (VAT) PortAventura, Spain In September 2012, Spain abolished its reduced Many Member States currently apply a reduced rate of 8 percent VAT for amusement parks. As a rate of VAT to parks and attractions. result parks are now subject to the standard rate of 21 percent, an increase of 13 percent. Where those rates are applied, we believe that they should remain and policymakers should avoid significant Faced with a highly price sensitive market, adjustments from reduced rates to a high standard rate. PortAventura had very little choice but to absorb the cost of the VAT increase leading to a decline Amusement parks and attractions are labour intensive, in admissions income. meaning that an increase in the number of visitors will feed through into increased employment relatively quickly. Based on the full year budget for 2012, the park estimated that the increase in VAT Between 2007 and 2013 the standard rate of VAT equated to a substantial decline in revenues increased from 19.5 percent to 21.2 percent (or (down 5 percent compared to budget) with 8.7 percent) whereas the average rate applying to admissions the hardest hit. An increase in amusement parks increased from 12.7 percent to 15.3 VAT also hit income from the hotel and the percent (20.4 percent). convention centre at the park. It’s often very difficult, if not impossible, for parks to pass Increased VAT and no lead ticket price increase on these increases to price conscious consumers. Parks resulted in less investment and ultimately lost operate in a very competitive environment with very little jobs at PortAventura. scope to adjust pricing. Increases in VAT have to therefore be absorbed, which may actually have the effect of reducing the overall tax take by: What we want from policymakers • Causing prices to rise and therefore reducing demand. • Causing parks to absorb the higher taxes reducing • Reduced rates of VAT for parks and cash flow for new investment or staff. attractions to be retained and applied more broadly to derive the economic benefits set In fact, where parks do absorb the cost it has a out above. depressing effect on jobs. By contrast, lower rates not • Greater application of reduced rates only stimulate investment and job creation they have other to tourist accommodation services and indirect benefits, including: restaurants/catering. • Gains in income and corporation tax receipts. • Increased turnover and therefore VAT. • Savings on unemployment benefit payments. VAT Rates on Admissions to Amusement Parks in EU Member States, January 2014 5 Fair Competition Between What we want from policymakers Public and Private Sector Attractions • Measures to ensure that public subsidies to the development of new attractions do not distort competition with existing commercial attractions. Many of IAAPA’s members operating on a • Guidelines for the allocation of EU funding commercial basis find themselves in competition with should be drafted accordingly, and include public-sector attractions receiving financial support requirements for sound feasibility studies. from public authorities. • Free or subsidised entry to new publicly funded attractions should be offered only This support could be a contribution towards where it does not have a negative impact on operating costs (especially where attractions serve existing commercially operated attractions. cultural objectives) or a contribution towards the initial investment. EU funding has also been widely used to support the development of new attractions in areas undergoing economic regeneration. Publicly funded development of attractions has often been based on poor feasibility studies. As a result, some of the attractions supported have either failed or needed further public support to keep going. They have caused distortion in the local market and put existing commercial attractions in the area at a severe competitive disadvantage. The importance of supporting economic regeneration with public funds is clear, but where the development of new visitor attractions is to be supported, the decision should be supported by a feasibility study based on a sound understanding of local capacity and market potential. Puy du Fou, Les Epesses, France 6 European Tourism Policy That What we want from policymakers Supports Competitiveness • Mainstreaming of EU tourism policy across all policy areas. This is the best way to IAAPA Europe fully supports the policy objectives stimulate the sector’s competitiveness. set out in the European Commission’s 2010 • Closer dialogue between the Commission communication ‘Europe, the world’s no.1 tourist and industry networks to develop, destination - a new political framework for tourism in implement and promote EU tourism activities Europe’. These objectives are to: and initiatives. • A competitive business environment for • Stimulate competitiveness in the European tourism through better infrastructure, tourism sector. competitive tax, easing access for third- • Promote the development of sustainable, country tourists and deepening the single responsible and high-quality tourism. market in services. • Consolidate the image and profile of Europe. • Proactively monitor EU policies with an impact on tourism. Four years on from the publication of this document, while progress has been made, more work is necessary to ensure that these objectives are fully realised. There needs to be a stronger emphasis on working in partnership with industry and a greater understanding of businesses’ concerns in the development of EU tourism policy. We need a business environment which is supportive of the tourism sector. Priorities in this respect include: • Easing barriers to visas for non-EU tourists. • Improved European infrastructure. • A competitive tax regime for businesses, in particular by moving taxation away from labour and using VAT to increase demand for tourism services. • Deepening of the single market for services. Efforts to mainstream tourism across policy areas must continue. Tourism is affected directly and indirectly by decisions in many different policy areas, ranging from taxation to consumer rights and visa policy. This must be recognised throughout the EU institutions and reflected in their activities. While we value the EU’s role in supporting the promotion of the EU as a unique and high-quality destination, this needs to allow the opportunity for the diversity of Europe’s tourism offer to flourish. Key initiatives and promotional efforts should still be driven by tourism bodies in the Member States. 7 Siam Park, Tenerife, Spain Skills and Employment Policy Investing in people: Mirabilandia, Italy That Incentivises Job Creation Mirabilandia in Italy typically invests more than 9,000 hours in more than 326 staff in order Our business is about creating memorable moments for to prepare for the opening of the season. This our guests that will live with them forever. In the creation includes: of these memories, our employees are key. Our industry continuously invests in our staff (53,100 across the EU) • 2,200 hours of safety training certified by a because they play a decisive role in the experience and leading safety organisation like TUV, DNV, safety of our guests. DTI or ATISAE. Each ride has a unique course module and staff are awarded with As major employers we face certain challenges that individual passports which certify which need to be addressed to make the process of recruiting, rides they are able to work on. retaining and training our staff as easy as possible. • 1,800 hours of sales and service training, Specifically: which is measured through customer satisfaction surveys. Survey results are • Seasonality: Our industry is subject to regional monitored daily and guests are encouraged demand. The majority of park staff are recruited for to reward staff that offer high levels of the summer period. These people are often young customer service with a gold card. and low skilled, but working with us for a season • 3,200 hours of ‘smile training’, which helps gives them new skills that strengthen their value in the staff to develop good hosting skills. This is labour market. Access to a pool of flexible labour, essential to give Mirabilandia’s guests a which allows us to respond to peaks and troughs in memorable experience. demand, is an essential part of our business model. • Labour availability: Difficulty in filling positions at What we want from policymakers nearly every level of park operations is a common problem in the sector. In terms of front line customer service staff it can be difficult to find candidates • Flexible labour law that recognises the value through local labour markets. Skilled staff like of seasonal work. mechanics as well as electricians, plumbers and • A tax regime which encourages employment chefs, continue to be difficult to find and filling by avoiding the over-taxation of labour and vacancies can require a long lead time. rewards employers who invest in training. Tivoli Gardens, Copenhagen, Denmark 8 Accessibility: Necessary for Integrating accessibility: Liseberg, Continued Business Success Sweden Liseberg in Gothenburg, Sweden, is one of the Approximately 80 million Europeans have largest amusement parks in Europe. Liseberg disabilities, some 15 percent of the population. uses a step-by-step model to integrate accessibility One in four Europeans has a family member with into its operations. a disability. The business case for parks to be open and accessible is clear and with an ageing This includes mapping challenges that the population this need is only going to increase. park’s environment may hold for several types Parks and attractions realise this and are rising of disability and communicating accessibility to the challenge. information to a wide audience to encourage visits from as broad a group of customers Improving access is a win-win situation for as possible. Facilitating access by specialist amusement parks and attractions because when training of staff or free entry for companions you improve accessibility for disabled guests, you of disabled guests as well as planning for improve accessibility for all guests. accessibility by integrating necessary physical changes into the investment plan of the park are However, it is important that improving access also important steps. Finally, Liseberg is then is driven by the industry and not just legislation, in a position to deliver change. For example, standards or labels. Only if the industry takes in 2016 Liseberg will open a new €2 million responsibility will lasting solutions be found. funicular as an alternative to steep walkways and escalators for less mobile guests. There also needs to be a recognition that amusement parks and attractions represent a This approach is making Liseberg a more challenging environment in terms of accessibility. accessible and welcoming environment, which A typical park has a complex infrastructure to meet is good for business. the requirements of a high volume of guests. Parks have to be built for the many and not for the few. In addition, accessibility has to be balanced with What we want from policymakers safety which can never be compromised. • Rules on accessibility that are framed with Parks have tended to look at accessibility in the the industry in mind. widest possible sense. Not everything can be • Recognition that changing a business’s solved by changing the physical environment. culture can be as valuable as changes to Much greater accessibility can be created through the physical environment. culture change so that accessibility is prioritised on the frontline and backstage. 9 Liseberg, Sweden