Saudi Arabia Entertainment Industry Future Outlook: Ken Research

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VR Gaming centers, trampoline parks, bowling alleys, and family entertainment centers are expected to see greater footfall as these destinations will be spread across major cities across Saudi Arabia.

• • • The percentage of household expenditure spent on leisure and entertainment is expected to rise from 2.9% in 2019 to 6% by 2025, which is forecasted to drive the establishment of entertainment destinations.
    • Saudi Arabia is divided into 3 large cities, 3 medium cities, and 7 small cities. Amusement Parks and Family Entertainment Centres are expected to be established in these cities in corresponding sizes bringing the total FECs to nearly 66 by 2030.
    • 7 movie theatre chains have received operating licenses as of January 2020, while only three chains are operations as of December 2019. The number of movie theatres operational by the end of 2025 is expected to cross 60.

Growth in Retail Real Estate Industry: Retail real estate includes the development of regional and super-regional malls, community centers, and entertainment destinations among others. The growth in the supply of retail real estate is expected to grow by 9.8% CAGR and the occupancy rate is expected to average 92% for the period 2019-2025. With 100% FDI allowed in retail real estate since 2016, foreign entities can find favorable investment terms additionally for entertainment-related destinations such as movie theaters, gaming centers, FECs, and mini amusement parks among others

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A growing need for Partnerships within the Movie Theater Ecosystem: Movie theater industries are expected to hedge their entry into the Saudi Arabian movie theater market with some sort of partnerships within the movie ecosystem including advertising rights sellers, movie distribution companies, and business groups with existing licenses in Saudi Arabia and screen format providers. Such partnerships are expected to drive entry into the movie theater industry. For instance, Indian theater chain PVR and UAE Majid Al Futtaim have signed an MoU for entry into Saudi Arabia and other regional markets.

The report titled “Saudi Arabia Leisure and Entertainment Market Outlook to 2025 – Movie Theater Market by Revenue (Ticket Admissions, Food and Beverage Sales, Advertisements and Sponsorships), Amusement Park Industry (Ticket Admissions, Food and Beverage, Merchandise, Games and Others(Parking, Sponsorships and Royalty)) and Alternate Entertainment Avenues (VR Gaming, Bowling Alley and Trampoline Parks)” by Ken Research suggests that household expenditure on leisure and entertainment is expected to drive the market in terms of revenue for the forecast period 2019-2025. The Saudi government’s Vision 2030 is expected to favor investors looking to establish entertainment destinations in terms of ownership, return on equity, payback period and funding assistance among others. The movie theater and amusement park markets are expected to grow at a CAGR of 15% and ~6% respectively for the forecast period 2019-2025.

Key Segments Covered: -

Movie Theater Market

Ticket Admissions

Food and Beverages

Advertisements and Sponsorships

Amusement Park Market

Ticket Admissions

Food and Beverages

Merchandise

Games

Others (Parking, Royalty and Sponsorships)

Alternate Entertainment Investment

VR Gaming Center

Bowling Alley

Trampoline Parks

Key Target Audience

Movie Theater Companies

Film Distribution Companies

Screen Format Companies (IMAX, 4D, 4DX)

Government Entities

Amusement Park Operators and Chains

Real Estate Developers

Mall Operators and Groups

Time Period Captured in the Report:

Historical Period – 2014-2019

Forecast Period – 2019-2025

Companies Covered in Report:

AMC Theaters

VOX Cinemas

MUVI Cinemas

Al Hokair Group

Al Shallal Theme Park

Off the Grind

Emirates Bowling Alley

BOUNCE Trampoline Park, Jeddah

Key Topics Covered in the Report: -

Saudi Arabia VR Gaming Revenue

Movie Theater Investment Saudi Arabia

MUVI Cinemas Sales Revenue

AMC Theatres Revenue Saudi Arabia

entertainment policy of Saudi Arabia

Saudi Arabia entertainment ventures

Media and Entertainment Industry in Saudi Arabia

Tourism, leisure and Entertainment in Saudi Arabia

Funding Model for Amusement Parks in KSA

Theme and Water Parks in Saudi Arabia

Number of Hajj Pilgrims in Thousands KSA

Saudi Arabia Theme Park Industry,

Tourism and entertainment in Saudi Arabia

For More Information on the research report, refer to below link: -

Saudi Arabia Leisure and Entertainment Industry Growth

Related Reports by Ken Research: -

Global VR Gaming Market Outlook to 2022 - by Hardware, Software and Accessories (Motion Sensor, Masks & Gloves, Bodysuits and Others) and by Devices (PC, Consoles and Mobiles)

Middle East Theme Park Market Outlook to 2021 - Increasing Number of Foreign Visitors and New Theme Parks in Pipeline to Foster Future Growth

Qatar Theme Park Market Outlook to 2021 - Development of Theme Park Resorts and Edutainment Centers to Foster Growth

Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

Saudi Arabia Amusement Park Market Outlook: Ken Research

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The Saudi Amusement Park industry can be dated to 1986, when Atallah Theme Park was opened in 1986 across 45,000 square meters, followed by a renewal in 2008 and renovation and grand opening in 2010. Al Shallal theme park began construction in 1999 and became operational in 2004. The park is the topmost grossing theme park in terms of revenue and was built at a cost of USD 100 Million.

The Al Hokair Group became a leading group in terms of entertainment and recreational venues with its Sparky’s brand, through which it increased its market penetration and introduced large scale entertainment for children. The company’s portfolio consisted of 100 entertainment centers across 24 cities.

The liberalization of Saudi Arabia led to the Saudi Vision 2030, where megaprojects across KSA have been planned with completion before 2030 to increase entertainment revenue. Saudi Arabia has allowed women to enter amusement parks and entertainment venues, leading to the establishment of Al Hokair Time, Saudi’s the first women-only theme park, as well as Women’s only night in various other theme parks, thereby increasing visitors.

The Public Investment Fund of the Kingdom has announced to invest in setting up three theme parks under Six Flags brand in Saudi Arabia which is expected to operate by 2021, thereby helping the market to increase the revenues in the long term. Increasing urbanization coupled with expenditure on entertainment activities will drive growth in the future.

As part of the Vision 2030, the KSA the government aims to build top entertainment hubs including 15 new amusement parks across 13 cities, with the government aiming to increase spend on recreation from 2.3% to 6%. According to the Saudi Investment Authority, preference towards amusement parks ranks higher than cinemas, water parks and other recreational and entertainment activities, as the park is family-oriented, and includes larger audiences.

Saudi Arabia Amusement Park Market Segmentation

By Revenue Stream (Ticket Sales/Admissions, F&B, Merchandize, Games and Others)

Admissions had the majority share of revenue streams. In 2019, Admissions to amusement parks contributed ~% to the revenues generated by the market players. Private parties and groups are charges SAR ~ over the ticket price to accommodate dining faculties. Parks organizes group parties with at least 20 people group.

Student admission tickets were observed to be least priced ranging from 40-60 SAR, with provisions for rides as well as catering. Highest student admissions were observed during weekdays.

F&B: Major theme parks in Saudi Arabia have well-known restaurants and eateries present within their premises. People spend an average of three hours in a park which raises the demand for such food outlets. The increased demand for restaurants due to growing footfall in theme parks has made this segment contribute ~% in terms of revenue during 2019.

Merchandising showcased dominant share owing to a large number of corporate or school tours visits to theme parks being one of the major entertainment sources in Saudi Arabia.

Gifts and accessories shops, toy stores and other outlets which sell merchandise related to a particular park and add to the revenues of theme parks operating in the country. Since this merchandise is available at a high price, this segment added ~% to the revenues earned by theme parks in Saudi Arabia in 2019.

Arcade games among the revenue contributors to theme parks in the country. Theme parks also offer monthly and annual subscription to their services, wherein onetime payment is made for a particular period; thereby adding to the overall revenues.

Other ancillary services including parking services offered by theme park operators also contribute to the revenues. Parking and Royalty from third party vendors is also a part of this segment as these vendors either share their sales profits or provide fixed monthly rent.

Various partners such as hospitality, television, print and social media sponsors and various local partners have come together with an entertainment destination to attract customers and creating a revenue source for amusement parks in the process.

Future Outlook for Saudi Arabia Movie Theater Industry 2019-2025f

The movie theater industry in Saudi Arabia is expected to grow at ~% CAGR from 2019 to 2025F. With licenses granted to more than ~ international movie theater operators as of 2020, and more operators slated to enter the market, the market stage can be expected to enter late growth during the forecast period. As more players enter the market, the competition is also estimated to become less concentrated. High spending the appetite of Saudi and Non-Saudi nationals will also allow theater operators to offer luxury movie viewing and value-added services, thereby increasing the share of F&B revenues.

Comparative Landscape in Saudi Arabia Amusement Park Market

The competition scenario is fragmented in Saudi Arabia Amusement park market with top 5 amusement parks accounting for nearly ~% of the market in terms of annual revenue as of December 2019. In terms of holding groups, Dubai based Majid Al Futtaim, Fakieh Group, Al Hokair the group is the top three holding groups in the entertainment industry.

Future Outlook for Saudi Arabia Amusement Park Market 2019-2025f

The Amusement Park market in Saudi Arabia is expected to grow at ~% CAGR from 2019 to 2025. The growth will be driven by an increase in tourists into Saudi Arabia, the opening of at least ~ amusement and theme parks by 2020, construction and completion of various phases of Giga projects and an overall increase in leisure and entertainment industry in the Middle East, which is expected to receive at least USD ~ Million investments in 2020. The demand for various sizes of amusement parks will drive their establishment in various small, medium and large cities, allowing the various private companies to partner with Saudi Authorities.

Key Segments Covered: –

Movie Theater Market

Ticket Admissions

Food and Beverages

Advertisements and Sponsorships

Amusement Park Market

Ticket Admissions

Food and Beverages

Merchandise

Games

Others (Parking, Royalty and Sponsorships)

Alternate Entertainment Investment

VR Gaming Center

Bowling Alley

Trampoline Parks

Key Target Audience

Movie Theater Companies

Film Distribution Companies

Screen Format Companies (IMAX, 4D, 4DX)

Government Entities

Amusement Park Operators and Chains

Real Estate Developers

Mall Operators and Groups

Time Period Captured in the Report:

Historical Period – 2014-2019

Forecast Period – 2019-2025

Companies Covered in Report:

AMC Theaters

VOX Cinemas

MUVI Cinemas

Al Hokair Group

Al Shallal Theme Park

Off the Grind

Emirates Bowling Alley

BOUNCE Trampoline Park, Jeddah

Key Topics Covered in the Report: –

Saudi Arabia entertainment ventures

Media and Entertainment Industry in Saudi Arabia

Tourism, leisure and Entertainment in Saudi Arabia

Funding Model for Amusement Parks in KSA

Theme and Water Parks in Saudi Arabia

Saudi Arabia Movie Theater Market Revenue in SAR Million

Number of Hajj Pilgrims in Thousands KSA

Saudi Arabia Theme Park Industry

Jeddah AMC Theater Market Revenue

Saudi Arabia Movie Theater Ticket Admissions

Saudi Arabia Movie Theater Advertising Market

KSA Leisure and Entertainment Industry

Tourism and entertainment in Saudi Arabia

Majid Al Futtaim Amusement Park Market Competitors

VR Gaming Customer Preference Saudi Arabia

For More Information on the research report, refer to below link: –

Saudi Arabia Leisure and Entertainment Industry Growth

Related Reports by Ken Research: –

Global VR Gaming Market Outlook to 2022 – by Hardware, Software and Accessories (Motion Sensor, Masks & Gloves, Bodysuits and Others) and by Devices (PC, Consoles and Mobiles)

Middle East Theme Park Market Outlook to 2021 – Increasing Number of Foreign Visitors and New Theme Parks in Pipeline to Foster Future Growth

Qatar Theme Park Market Outlook to 2021 – Development of Theme Park Resorts and Edutainment Centers to Foster Growth

Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

Saudi Arabia Leisure and Entertainment Market Outlook to 2025: Ken Research

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The report titled “Saudi Arabia Leisure and Entertainment Market Outlook to 2025-Movie Theatre Market by Revenue (Ticket Admissions, Food, and Beverage Sales, Advertisements and Sponsorships), Amusement Park Industry (Ticket Admissions, Food and Beverage, Merchandise, Games, and Others) and Alternate Entertainment Avenues (VR Gaming, Bowling Alley and Trampoline Parks)” provides a comprehensive analysis of the status of leisure and the entertainment industry in KSA. The report covers various aspects including the market potential, market segmentation and customer preferences in each segment. The report concludes with market projections for the future of the industry including forecasted industry size by revenue with a recommended market penetration strategy for a new entrant.

Saudi Arabia Movie Theater Market Overview and Size

Saudi Arabia movie theater market had begun taking shape after a 35-year hiatus. The Saudi government, in a bid to increase entertainment opportunities in Saudi Arabia, allowed screening of movies in 2018. AMC Cinemas was the first international movie theater chain to operate in Saudi Arabia with the KAFD screen that accommodates 490 patrons. As of December 2019, more than 9 movie theaters are operational across Saudi Arabia, with a maximum in Riyadh.

Market Segmentation by Revenue Source (Ticket Sales, Food and Beverages, and Advertisements and Sponsorship)

Ticket sales were observed to the dominant revenue source for movie theaters, in line with trends observed in emerging movie theater markets. The standard screen was observed to dominate the type of tickets and screens preferred by moviegoers due to their low cost and high availability. Similar to more developed movie markets, the majority of the demand for ticket sales was through the online medium.

Food and Beverages sales were second-highest for movie theater operators. Movie theater companies were observed to have earned a higher margin on F&B related costs. Currently, third-party vendors operating in movie theaters are rare and all offerings belong to the theater company. The average spending by Saudis on F&B in movie theaters were in the range of SAR 40-60.

Advertisements and Sponsorship included revenue from the exhibition of ads from distributors. Sponsorship revenue was included as most of the theaters operating in Saudi Arabia was new and therefore had greater sponsorship activity to increase footfall in theaters.

Market Competition

As of 2019, the movie theater the industry is concentrated between 4 players, with VOX Cinemas operating 7 out 9 theaters as of 2019. The Saudi Authority for a movie, General Entertainment Authority has given movie theater licenses to 7 operators as of January 2020. Currently, 4 cinema chains are operational in Saudi Arabia, namely Dubai based VOX and the USA based AMC, Saudi based MUVI Cinemas and Middle Eastern-based Empire Cinemas. Currently, VOX holds the market leadership position with more than 7 operational theaters across KSA, followed by AMC and MUVI with 2 locations each. Companies compete on the basis of ticket prices, type of screen formats, F&B packages and discounts among others.

Future Outlook

For the period 2019-20205, the movie theater industry in Saudi Arabia is forecasted to grow at a CAGR of 15% as more movie theater chains enter the market. As movie theaters face footfall challenges, discounts, movie passes can be expected on tickets as well as higher margins on F&B sales. For nationals with higher spending capacity, premium movies viewing formats such as 4D, IMAX and other luxurious offerings such as fine dining and private viewing will help movie theater operators to gain higher revenue from fewer admissions.

Saudi Arabia Amusement Parks Market Size

The amusement park industry in Saudi Arabia is fragmented with various types of amusement parks in operation including theme parks, water parks, entertainment parks in malls, snow-based parks among others. The market grew at a single-digit CAGR. The Al Hokair group and Al Futtaim group are the leading businesses in the amusement park establishments, with Al Shallal Theme Park, Al Hokair Land, and Jungle Theme park. The growth in tourists and their entry with tourist visas and the government’s push for an entertainment-based economy has driven the market in the review period.

Market Segmentation

Ticket Sales and Admissions in 2019 for amusement parks include sales of walk-in tickets, online, and groups and parties. This the segment was observed to have accounted for the highest share of amusement park revenues, as the average ticket price includes an entry fee to be paid irrespective of rides.

Food and Beverages revenues include sales from stalls and restaurants as well as catering services offered inside the premises. Catering services are offered to groups such as schools, corporate, ladies’ nights among others. This segment accounted for the second-highest share of overall amusement park revenues in 2019.

Merchandise Sales in 2019 accounted for the third-highest of amusement park revenues in 2019. All amusement parks sold souvenirs, clothes, toys and other accessories at shops and stalls inside the premises.

Games and arcades revenues from Amusement parks had specific gaming arcades for families, children and women which include traditional arcade games as well as new games that included VR and bowling.

Other revenue sources include royalty from third party food vendors if any, parking charges, and sponsorship revenues for events that are conducted in the amusement park such as water shows, magic shows, and other exhibitions.

Market Competition

The nature of competition is fragmented in terms of amusement parks. The region has various amusement parks, family entertainment centers, water parks, and theme-based parks. Al-Shallal theme park is the oldest operating theme park in Saudi Arabia and holds the highest market share in terms of revenue as well as admissions as of 2019. Other parks include Al Hokair Land and Atallah Happy Land which have the next highest revenues.

The nature of competition in terms of holding companies is moderately concentrated as Majid Al Futtaim and Al Hokair group are market leaders with annual revenues from entertainment and family-oriented destinations exceeding SAR 1 Billion for 2019. Fakieh Group is another holding company, which owns Al-Shallal theme park.

Alternate Entertainment in Saudi Arabia

Alternate entertainment avenues have been identified in Saudi Arabia based on their attractiveness for investors as well as customers. These avenues are identified according to the Vision 2030, which expects Saudi nationals to engage themselves in leisure, entertainment and specifically recreation with an interest in physical activity.

Virtual Reality gaming is extremely new in Saudi Arabia and has major applications to business enterprises than in gaming and leisure. Currently, Vogel and Off the Grind (OTG) provide VR solutions for businesses while OTG also provides gaming solutions, Zero Latency is Saudi Arabia's first free-roam VR gaming arcade. The payback period for investment in a lease based operating model was observed to be highest.

Bowling Alleys are common in Saudi Arabia as the sport has a long history in the kingdom. The Universal Bowling Center in Riyadh operates according to International Bowling Standards and conducts various tournaments for professionals as well as leisure seekers.

Trampoline Parks are somewhat common in the kingdom with international operators such as Skyzone and Bounce having operations in Jeddah, Riyadh and Al Khobar. With the purpose of exercise and recreation, trampoline parks attract schools, corporate, females only among others with an aim to improve lifestyle and fitness, as well as entertainment.

Key Segments Covered: -

Movie Theater Market

Ticket Admissions

Food and Beverages

Advertisements and Sponsorships

Amusement Park Market

Ticket Admissions

Food and Beverages

Merchandise

Games

Others (Parking, Royalty and Sponsorships)

Alternate Entertainment Investment

VR Gaming Center

Bowling Alley

Trampoline Parks

Key Target Audience

Movie Theater Companies

Film Distribution Companies

Screen Format Companies (IMAX, 4D, 4DX)

Government Entities

Amusement Park Operators and Chains

Real Estate Developers

Mall Operators and Groups

Time Period Captured in the Report:

Historical Period – 2014-2019

Forecast Period – 2019-2025

Companies Covered in Report:

AMC Theaters

VOX Cinemas

MUVI Cinemas

Al Hokair Group

Al Shallal Theme Park

Off the Grind

Emirates Bowling Alley

BOUNCE Trampoline Park, Jeddah

Key Topics Covered in the Report: -

Movie Theater Market Current Scenario and Future Outlook

Investment Analysis for Setting up Movie Theater

Customer Preference Survey for Movie Theaters

Investment and Regulatory Scenario in Movie Theater Industry

Case Study Analysis of Successful Movie Theaters in Middle East

Amusement Park Market Current Scenario and Future Outlook

Investment Analysis for Setting up Amusement Park

Customer Preference Survey for Amusement Parks

Investment and Regulatory Scenario in Amusement Park Industry

Case Study Analysis of Successful Amusement Parks in Saudi Arabia

Alternate Entertainment Avenues for Investment in Saudi Arabia

Investment Analysis of Alternate Entertainment Avenues

Customer Preference Survey for Alternate Entertainment

For More Information on the research report, refer to below link: -

Saudi Arabia Leisure and Entertainment Industry Growth

Related Reports by Ken Research: -

Global VR Gaming Market Outlook to 2022 - by Hardware, Software and Accessories (Motion Sensor, Masks & Gloves, Bodysuits and Others) and by Devices (PC, Consoles and Mobiles)

Middle East Theme Park Market Outlook to 2021 - Increasing Number of Foreign Visitors and New Theme Parks in Pipeline to Foster Future Growth

Qatar Theme Park Market Outlook to 2021 - Development of Theme Park Resorts and Edutainment Centers to Foster Growth

Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249