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Think Tank
This week we focus on a complete analysis of the
amusement park industry
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"Lack of vision is the main problem" 

 
Mahesh Modi, promoter of Shanku's water park at Mehsana in Gujarat, can be called the father of India's water park industry. In an interview with Vijay Trivedi of The Financial Express, he focuses on vital industry parameters and constraints.

Growth rate:
Shanku's started on 11th November 1993 and till November 1995 it was the only water park in India. In the next two years, around 30 new water parks came up. So much for the growth. In 1998-99 only 2 water parks were set up in Gujarat, and none after that. Today there are about 14 water parks operating in Gujarat. Countrywide the total number is around 40, which includes one theme park and 7-8 amusement parks. Of these only 12 are doing well, two of which are in Gujarat.

Critical factors:
Location -- Research shows that parks located either within the city or more than a three-hour drive away from it are not doing well. The ideal location would be a one-hour drive from the city. People like to get away from the concrete jungle, but they also want to be able to return quickly in case of emergencies. The location must be easily accessible, pollution free and nature friendly. The kind of rides are decided upon keeping the target audience in mind. One must have as many rides as will attract customers all day long. The rides should also tempt them into visiting again.

Role of multinationals:
Multinationals are crucial since they provide most of the rides even today. Imported goods are definitely high quality and very safe. Also, their long presence and infrastructure offers opportunities to learn the finer points of park management, like maintenance, safety, risk management, marketing etc. For advanced rides like virtual reality and simulator, we totally depend on them.

Government support:
The state government's attitude can influence the project in ways like land clearance. In the case of the land, licensing procedure, policy matter, incentives etc. are all inevitable formalities. Government attitude in these areas is not positive.

Shanku's location in Mehsana:
The first factor was the novelty of a water park. Nowhere in north Gujarat or in Ahmedabad was there a rival entertainment centre. The second was the weather, which is conducive to running a water park throughout the year, whereas in Europe and America water parks run for only four months. Finally, we wanted to paying our tribute to our native place.

Critical mass:
Most parks in India are in bad shape. The main reason is lack of vision. Before developing any park, the promoter should be very serious about selecting the location. He should always try to introduce new rides rather than copying others. The life of rides, popularity wise is only 3-4 years. But the practice of replacing non-performing rides has not yet started in India, so everybody ends up with the same rides. The promoter's vision can help earn goodwill. The breakeven period depends upon where you are located and how your park is doing. Normally it is 3-4 years. The future in terms of demand is bright. Indians always look for new tourist destinations.

Threats:
A big threat is water scarcity. Water level is going down. This means higher maintenance for the rides. Another threat is power supply -- increasingly inadequate and expensive.

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