Footfalls at Wonderla parks above pre-pandemic levels
The entertainment company plans to expand its presence further by constructing 2 new parks in next 3 yrs; Already began construction works in Chennai; Development of the Bhubaneswar Park is currently underway, with a launch date set for 2025; Hyderabad Park will launch 6 water-based attractions soon
image for illustrative purpose
The global entertainment industry is expected to be $2.6-trn business by 2025 and Indian leisure segment is catching up fast as players such as Wonderla Holidays Ltd expanding business operations across India. Wonderla Holidays is upbeat on business potential in the domestic entertainment sector and moving ahead with expansion plans. Further, it’s enhancing headcount by 10 per cent to support the growing business operations.
After suffering from the sluggish business impacted by Covid-19, the domestic leisure and entertainment sector is recovering very fast and footfalls at Wonderla are much above pre-pandemic levels now, Arun K Chittilappilly, MD, Wonderla Holidays Ltd, tells Bizz Buzz
Of late, the leisure, hospitality and entertainment sectors are recovering after the Covid impact. How do you see the ongoing rebound?
The ongoing rebound in the leisure, hospitality, and entertainment sectors following the impact of Covid-19 is indeed a positive development. We are witnessing an increased demand for leisure activities and entertainment experiences. People are eager to resume normalcy and engage in recreational pursuits, creating opportunities for the sector’s recovery. The rebound is expected to gain momentum as consumer confidence grows and individuals feel more comfortable venturing out and participating in various entertainment offerings. The pent-up demand for leisure and entertainment experiences, coupled with the desire for social interactions and quality time with family and friends, is driving the sector’s resurgence. There has been a trend where people are opting for one-day trips to amusement parks, with a rise in women travellers, which has helped amusement parks gain a great footfall.
What’s the growth in bookings last fiscal and forecast for the current financial year?
Footfall growth for the year FY23 is 39 per cent to 33.1 lakh when compared to 23. 8 lakh in FY20. And this year we are expecting a 15-20 per cent growth.
Wonderla’s net profit in the March quarter declined when compared to the previous corresponding qtr. What factors affected the financial performance?
Q4 is weaker than Q3 so QoQ growth can’t be compared and YoY growth improved.
How much has been invested in Wonderla Holidays?
We have invested the equivalent of Rs300crore per park (Rs300cr x3) and about Rs40 crore on the resort for existing projects. We have plans to invest about Rs500 crore in Chennai and Bhubaneshwar in the next two years.
How do you compare 3 units at Hyd, Kochi and Bengaluru in terms of investment, RoI and footfalls?
I am thrilled to announce that all three parks have done exceptionally well in this quarter, and we look forward to achieving greater heights in the future. The footfalls at Wonderla parks have surpassed pre-pandemic levels, experiencing a remarkable 2x growth (99%) in comparison to Q4 FY20.
Wonderla Bangalore has witnessed 2.69 lakh footfalls, marking a significant increase of 96 per cent compared to Q4 FY20. Wonderla Kochi recorded 3.03 lakh footfalls, demonstrating an impressive growth of 128 per cent compared to Q4 FY20. Wonderla Hyderabad experienced 2.33 lakh footfalls, indicating a notable growth of 73 per cent compared to Q4 FY20. The robust footfall numbers have contributed to double-digit revenue growth across all Wonderla units. In Q4 FY23, the resort achieved a 49 per cent occupancy rate, reflecting positive progress in attracting guests. The company spent Rs10-15 crore on adding new rides and attractions in FY22–23 and is now looking to scale up spending to Rs60–70 crore in FY23–24.
Are you planning to set up more Wonderlas across India and overseas?
Wonderla Holidays currently exists in three locations: Kochi, Bengaluru and Hyderabad, along with a resort in Bengaluru. However, the company has plans to expand its presence further by constructing two new parks within the next three years. Construction has already resumed in Chennai, and the development of the Bhubaneswar Park is currently underway, with a projected launch date set for 2025. In the upcoming years, Hyderabad Park is planning to launch six water-based attractions: one high-thrill attraction, two water-based attractions in Kochi and Bengaluru, and one virtual reality attraction.
The leisure and entertainment sectors are facing staff crunch and rising costs. How are you managing the show?
Wonderla Holidays at present has a headcount of about 1,000 individuals, and the amusement park chain aims to expand its workforce by hiring additional 50–100 employees across all its operations this year. The company’s operations encompass two main aspects: a ticket business and a non-ticket business.
How do you see the impact of the global slowdown on leisure and entertainment segments?
The impact of the global slowdown on the leisure and entertainment segments has been significant. Economic downturns and uncertain market conditions associated with the global slowdown can influence consumer behaviour and spending patterns, thereby affecting the leisure and entertainment industries. During periods of economic uncertainty, individuals and households may experience reduced discretionary income, leading to a decrease in spending on leisure activities and entertainment experiences. This can result in a decline in attendance at amusement parks, theatres, concerts, and other recreational venues. Businesses operating in these sectors may experience lower revenues and profitability due to reduced consumer demand.
