Volume 3, No. 3. February 14, 2003
Garden
harvest
The
same day Ocean Journey announced Ripley Entertainment’s bid for the Denver
aquarium, Paramount Parks and Bonfante Gardens announced the amusement park
chain had been contracted to manage the Gilroy, California, theme park (see
Extra! Extra!).
Combined, both stories suggest the consolidation trend is continuing in the
amusement industry.
Bonfante Gardens, being the unique type of theme park that it is—one based
on horticulture and skewed decisively to families with young children and to
senior citizens—is a unique situation, however. Over-invested and yet undercapitalized,
the park began looking for a management arrangement toward the end of last season.
Bonfante officials approached Paramount Parks.
The terms of the agreement were not released, but Paramount officials stressed
that the contract is strictly a management one. The chain therefore is taking
little, if any, risk in operating the park. It will be managed by the Paramount’s
Great America management and marketing team, which also has the company’s
Star Trek: The Experience in Las Vegas under its umbrella. As for future investment
in the park, Paramount Parks will recommend capital improvements and other development
options to Bonfante’s board of directors, but any decision on such recommendations
will be strictly in the hands of the board.
Meanwhile, Paramount Parks can use Bonfante Gardens to add value to the one
property in its chain that continues to slump, Great America in nearby Santa
Clara. The company is touting the arrangement as providing “excellent cross-marketing”
opportunities. Read into that combo passes and second-day rates along with shared
advertising. Even if that doesn’t surge attendance at Great America, it
will likely drive more traffic to Bonfante.
One of the reasons both parks have suffered in attendance is the economic conditions
of the San Francisco Bay Area, which has borne the greatest brunt of the current
nationwide recession. No one questions the value of both properties, especially
Bonfante Gardens, universally regarded as perhaps the most beautiful theme park
in the world; but the economic environment of the region has not changed. Paramount
Parks is just now putting together its business plan for Bonfante’s operations,
so exactly how the company plans to attract enough attendance to justify the
park’s investment value, and whether the new managers can even do that,
remains to be seen.
What is certain is that it won't hurt Paramount Parks to try.
©2003, Minton Enterprises
LLC
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