Economy, Business And Markets

Iran Investment Series: Amusement Park Construction

Iran Investment Series: Amusement Park Construction Iran Investment Series: Amusement Park Construction

About 100 of Iran’s 400 amusement parks are located in Tehran, says a consultant in amusement park construction.

Arsham Safipourian added that some 10 such parks have an area of 1,500 square meters.

An amusement park is a group of entertainment attractions, rides and other events in a location for the enjoyment of large numbers of people. They are more elaborate than simple city parks or playgrounds, usually providing attractions meant to cater to all ages.

Asked about the rise in the construction of indoor amusement parks, Safipourian said: “Money needed to launch an indoor amusement park is less than that for outdoor ones. Also, the fact that outdoor spaces are at the disposal of municipalities makes it more difficult for investors to set up such businesses. Indoor amusement parks are built within shopping centers, either by the owner of the place or a contractor.”

He noted that Iran needs 30 new indoor and three outdoor amusement parks to get closer to the global standard in three years.

“Construction of amusement parks would prove lucrative in many cities, particularly in underprivileged towns,” he said.

“Khoy, Birjand and Torbat-e Jam are among the cities that are on course to construct new amusement parks.”

Based on market research by IBIS World, which is an Australian research company, the amusement park industry has grown strongly over the past five years, driven by a rise in international and domestic visitor numbers and rising consumer spending.

“In the coming years, growth is expected to continue as a number of drivers continue to have a positive influence on the industry. For example, travel spending is anticipated to increase as the economy improves over the next five years,” the research read.

The Iranian consultant said location, variety of the rides and safety of the mechanized thrill machines can bring about 25% to 50% net profit for the investors.

To set up an indoor amusement park, around 20 billion rials (around $668,114 at official exchange rate) are needed for facilities and the rides per 1,000 square meters while 2 billion rials ($66,811) should be allocated for design and decoration.

“If you are considering to purchase foreign rides, about 40% of customs tariffs should be added to the initial investment,” he said.

“To construct an outdoor amusement park, 50 billion rials ($1.67 million) are required to procure rides per 1,000 square meters. You should set aside 5 billion rials ($167,029) for design and decoration. Each 3,000 square meters of an indoor amusement park would need 100 workers.”

Safipourian believes another opportunity in the industry would be investment in the renovation of Iran’s old amusement parks.

“More than 90% of rides in Iran’s amusement parks need to be modernized,” he concluded.