PW Oct 09 P40:PW Oct 09 P40.qxd 28/09/2009 10:10 Page 40
Waterparks
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UNDERCOVER DOWN UNDER
Why an indoor waterpark would work in Australia
In previous issues, Park World has focused on the indoor
waterpark sector in North America, where new hotel and resort-
based developments continue to appear. Other parts of the world,
notably Northern Europe, have so far failed to embrace the
concept with such enthusiasm. But could Australia, with weather
surely more suited to outdoor attractions, become the next hotspot
for undercover waterparks? Jeff Coy thinks so
A
ustralia has no hotels with waterparks. The closest thing is Sea
World Resort on the Gold Coast, featuring its own outdoor
waterpark. But it’s not the same. An indoor waterpark is like an
outdoor waterpark, except all the fun is packed into a cube which is
attached to a hotel open 365 days a year, rain or shine.
Having an indoor waterpark can add up to US$25 per person to the
room rate for an upscale hotel or resort. A 300-room waterpark
hotel/resort running 70% occupancy with a customer mix of 60% leisure
guests and six persons per suite could expect waterpark attendance of
275,940 persons annually.
Now, just for fun, multiply the above attendance of 275,940 by $25 a weather is either too hot, too humid or too windy. The window of human
head and you can expect to add $6,898,000 to your room and comfort is a narrow window. Mom doesn’t want her children outside in
waterpark revenues! Plus there are incremental sales to be captured from 120 degrees for too long. She immediately starts looking for shade. As
snack food, beverages, ice cream, gifts and souvenirs. Day guests can the number of shade structures increases, so the square footage ratio of
bring extra money, but you would typically need to over-size your shade per person increases. So why not have the best of both worlds?
waterpark in the design phase to accommodate them. Indoor and outdoor.
When Australian hotel and resort owners finally discover the
difference that an indoor waterpark can make to the performance of Potential Players
their property – such as reduced vulnerability to seasonality and Australia’s first hotel waterpark could take several forms. It could be all-
weather conditions, higher occupancy and higher room rates – new new upscale full-service resort with waterpark, conference centre, golf
development is going to take off. and sporting facilities. Likewise, it could be a conversion of an existing
While the banking crisis has shut off the flow of money for much new facility or “add a box” project where an undercover waterpark is attached
hotel construction in the US, the recession is milder in countries like to an existing hotel.
Australia. In fact, it has been proven to be least affected by the global For the last three years, Julianne and Vincent Cusumano, the owners of
economic crisis, followed by China, India and Singapore in equal third JV Play in Sydney (a waterpark supplier) have been studying the trends for
place. these type of facilities and recently announced plans for the Great Reef
Resort, including a 250-400-room hotel, indoor and outdoor waterparks,
Weekend Retreat plus conference facilities in western Sydney.
Hotels in Australia are producing an occupancy that is already 10 to 20 Other potential operators include New South Wales’ Mirvac Hotels &
points higher than in other countries, however regional drive-to resorts Resorts and the Stella Hospitality Group, which markets retreats, resorts
are attracting more guests than national fly-to resorts. Taking several long and hotels under the Peppers, Breakfree and Mantra brands. As we’ve
weekends is replacing the annual vacation, making ski resorts, golf already mentioned, an indoor waterpark would also make a good fit for
resorts, mountain and lake resorts ideal locations for hotel waterpark a major ski resort or an urban hotel.
developments. Urban and suburban areas will also attract hotel Of course, we mustn’t rule out the major players, such as Village
waterpark investment to revive downtown areas. Roadshow, operator of Warner Village Theme Parks including Sea World
A survey of Sydney residents pointed to the frustration of having to fly and Wet ‘n Wild, or Macquarie Leisure Trust with the Dreamworld and
to the Gold Coast in Queensland for a waterpark experience. “Sydney is WhiteWater World parks on the Gold Coast. Does it make sense for a
the real capital of Australia,” said one respondent. “We deserve to have Gold Coast resort to have an indoor waterpark? Yes, I believe it does,
our own waterpark resort right here.” There’s Jamberoo Action Park in because it will be open 365 days rather than the typical 100 to 120 days
Wollongong just south of Sydney, but there’s no lodging and no indoor for an outdoor waterpark.
waterpark – yet. An outside bet would be an American operator such as Six Flags with
It is true that hotel indoor waterparks started out in cold weather resort its Great Escape Resort concept or Ripley Entertainment with its 12-strong
areas, such as Wisconsin Dells in the USA. It is also true that much of portfolio of Great Wolf Lodge resorts.
Australia is warmer than the US. Finding a cold-weather resort in Who will be first?
Australia means going south to Hobart or going up into the mountains
Jeff Coy is president of JLC Hospitality Consulting in
near Melbourne, Canberra or Sydney. That’s why I believe that the first
Arizona (www.jeffcoy.com). Certified by the International
hotel indoor waterpark in Australia may be located at a ski resort.
Society of Hospitality Consultants, he is recognised as a
However, they need not be confined to cold weather areas. Several
leading authority on hotel waterpark resorts and
years ago, people would ask me, “Why do we need an indoor waterpark
adventure sports parks. Contact him at +1 480-488-
in Florida or Arizona, because the weather is so perfect?” Actually, the
3382, or e-mail jeffcoy@jeffcoy.com
40 OCTOBER 2009
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