Water Park Feasibility Study

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A water park feasibility study often is the most important first step in the development process of a project. It will identify the project’s supportable market and will qualify it based on important factors such as income, age, unemployment ratios and much more. 

A water park feasibility study typically is a requirement laid out by design firms giving them the critical information to design the park for the right audience and to the correct sizing requirements, balancing rides, attractions, entertainment and shows. It will also lay out planning parameters that serve to develop a retail, food and beverage programs to allow parks to gain income from more than just ticket sales.  
 

Outlined below are the typical steps and milestones involved in authoring a water park feasibility study, which is typically done in three stages: “A”, “B” and “C”. 

A.1. Project Kick-off 

AEDP and the Client team will hold a kick-off session to confirm amongst other things the project objectives and strategies, the study methodology and deliverable timelines. 

A.2. Site Evaluation 

AEDP will establish the baseline conditions of the study site. These include, but are not limited to development plans, transportation network, site history, and undertake an analysis of the environment, urban fabric and other relevant topics. 

A.3. Analyse Competition

AEDP will conduct preliminary market research that will cover the region to analyze current competitiveness in the market and future competitors. 

A.4. Case Studies and Benchmarks

AEDP will identify suitable projects globally to be used as benchmarks for the proposed project. Extensive research will be done to determine vital benchmark information such as pricing and visitor profiles, historical attendances and key learning points.  

A.5. Demand Model

AEDP will summarize the historic available resident and visitor market sizes in order to estimate the market demand for the proposed water park. 

In parallel AEDP will bring forward trends in lifestyle of the various market channels so to develop key market opportunities. 

Depending on the state of the economy at the chosen location, the market’s audiences sometimes requires an income qualification to ensure the admission prices set are achievable. 

Based on available markets, competitive analysis and international benchmarks, a demand model will subsequently be prepared to forecast attendance based on the travel distance of the potential visitor. 

A.6. Vision, positioning and programming

AEDP will establish a vision, positioning and programming for the theme park. Finally in this phase an initial development program will be prepared, which will form the basis for the design team. 

B.1. Attendance

Potential annual attendance for the proposed water park will be estimated for the 15 years after its opening based on the data research in phase A. 

B.2. Planning and design parameters

AEDP would make recommendations for the required capacity for the water park and will include the recommended mix of rides, attractions, shows and entertainment. Also required services from retail to restaurant from the number of showers, to the number of beach chairs will be included in the planning documents. 

When it comes to rides, slides and pools AEDP will suggest an optimal mix based on based on psychological models, the defined age groups and the market situation. Optionally, AEDP can make introductions to manufacturers and suppliers.

A bubble diagram and other visualisation of the proposed water park may be included at this stage, outlying the needed sizing, capacities and amenities to service the expected market demand. 

C.1. Financial analysis

AEDP will recommend admission pricing and the projected water park spending for attractions and the corresponding operating expense ratios for their reasonableness. The expected total construction costs will be determined, being one of the factors of the total investment. Finally the proposed investments will be combined with the income and costs streams to arrive at the NOI and ROI’s for the project in a 20-year timeline.