Merlin buys Tussauds

Merlin Entertainment have been on a major spending spree lately. They've snapped up the Sea Life Centres, Dungeons, Legolands and Gardaland over the past 24 months and now they've just bought Tussauds from DIC. This now makes Merlin Entertainment the second largest company in the business 2nd only to Disney. This doesn't take into account that Merlins parent company Blackstone also have major ownership stakes in Six Flags.

I believe this is good news because Merlin Entertainment seem set on building an amusement industry empire and they're not just investment capitalists putting money where ever they feel fit. The Tussauds exec sees this as a chance to expand the business. I'm hoping this means as well as new parks/attractions appearing around the globe that exisitng attractions will receive major investments. Since taking over the Legoland brands Merlin have already announced plans to build a new large scale park in the US and a small city centre park in Berlin.

Looking at how Tussauds enters into this attraction empire I think different parks may change or expand.

Chessington World of Adventures is a major rival to Legoland Windsor going for the same target audience. As they are now owned by the same company what strategy will Merlin take. I can't see Legoland changing as it is a global brand. I do wonder, as has been apaprent over the past 12 months, if CWOA will heavily rely on animals and become more of a zoo with a few rides rather than be an out and out theme park. I wouldn't be surprised if a Sea Life centre was added to CWOA. It's crying out for it. That way you have 2 completly different parks attracting the same audience and therefore justifying 2 day trips. I know Legoland Billund is adding an aquarium attraction for 2007 but I still say it would make more sense to add this to CWOA than Legoland Windsor.

Thorpe will continue to grow as a park for older families, no point going after Legolands audience now you've found a new niche for CWOA. Perhaps Thorpe will get a push as a European destination much like Alton Towers. Especially as it will soon get its own hotel. Thorpe will still need its share of attractions for the younger audience but will focus on older thrill seekers. Given its proximity to Heathrow it would make sense to go after a European audience. Brits go to Europa Park and Phantasialand so why can't Europeans come to Thorpe. Thorpes hotel cold be sued to serve Legoland Windsor too, especially if they were to provide a courtesy shuttle bus.

Alton will continue to grow as a resort. I'd anticipate Merlin using their Dungeon brand in conjunction with the Towers itself. Maybe a new dark ride alongside Hex. A Sea Life centre also wouldn't be out of place as a 2nd gate. Perhaps as is planned elsewhere around the globe create a small Legoland attraction as 3rd gate (1 to open in Berlin soon). Legoland Windsor can't really attract people from north of Alton Towers so Legoland Staffordshire shouldn't have to much impact on Legoland Windsor. Especially if it's of the smaller regional model they are currently pushing. I gather they are planning a third hotel so with at least 1 more gate I think you'll see more people taking long weekends to Alton Towers. With a water park, theme park, aquarium you would want to spend at least 2 night there.

I wouldn't be surprised if Gardaland and Heide park were also to receive their own regional Legolands and Sea Life Centres. Compared to a roller coaster they would be relatively cheap to add, would increase the parks capacity, have a wider audience, and potentially increase revenue as upcharge or 2nd gate attractions. With both parks already having the infrastructure for attractions ie. parking, catering, maintenance, utilities, it would be easier to add 2nd gates to these locations than to brand new locations. With parks having second gates and needing more time to visit a hotel becomes necessary so visitors can spend a couple of days there. With hotels comes even more revenue, not just from guests but also from corporate events, weddings etc.

With regard developments at the parks we've been told about things have gone quiet over the past few months of Alton Towers new area. I wonder if this sale has been quietly bubbling away and DIC didn't want to spend megabucks on something they wouldn't see a return on. We can only keep our fingers crossed that Merlin will want to continue with the project albeit I expect with a slight delay. The same could be said of the roller coaster planned for Thorpe, although given that it isn't due till 2009 that may not be affected as much. Unless of course it's a woodie and Merlin don;t want 2 new woodies opening in their parks in the same year.