Coronavirus lockdown: Amusement parks seek relief package from Centre

The 200-plus amusement parks, indoor amusement centres are facing huge problems because of the COVID-19 India lockdown and have sought a stimulus package from the government. They have projected a revenue loss of Rs 1,000 crore because of the prevailing situation.

The amusement park in India number is around 150 while indoor amusement centres is around 65. The Indian Association of Amusement Parks and Industries (IAAPI) is the apex body representing the interests of amusement parks, theme parks, water parks and indoor amusement centre in India.

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The Indian amusement and theme park industry is estimated to grow at CAGR of more than 16% with annual revenue of nearly Rs 2,261 crore (US$ 315mn) in 2019 and is estimated to grow to approx. Rs 7,444 crore (US$ 1.03 bn) by 2025.

It provides direct employment to around 80,000.

IAAPI Chairman Ajay Sarin, said, “As a responsible industry, we understand, respect and support the decision of the government and the local bodies in curtailing the spread of COVID-19 and all amusement parks have been closed. Thus, in view of the same, conducting business in such an environment has become a major concern and industry is now struggling for its survival."

He said after lockdown the amusement industry will be further impacted since families will avoid going to crowded places and travel will be restricted as our industry attract children, youth and family in large numbers. "The industry has lost its biggest peak season which will be followed by off-season of another six months," he said.

The amusement industry is highly capital intensive and seasonal as it operates mainly from mid-March to July due to climatic reasons, high operational and manpower costs, considering the safety and security of visitors.

For the rest of the months, the capacity of the amusement and theme park is left unutilised, making the operational costs overrun the revenues.

The industry envisages normalcy after about five to six months for the patrons to regain trust and confidence and start flocking the amusement parks. "The amusement park industry is on the verge of collapse and seeks an instant emergency decision to rescue and sail the entire amusement industry from the prevailing turbulent environment," he said.

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The only way this can happen is by reducing fixed operating expenses significantly in the immediate term until consumption in the sector bounces back and the economic activity revives.

With almost no revenues, due to suspension of operations as a consequence of the pandemic, amusement park industry is running out of working capital and is finding it difficult to meet its financial obligations such as staff salaries, advance tax, GST, PF, ESI and other state levies, loan interest and instalment payments.

They demanded a complete GST holiday for 12 months and waiver of custom duties on import of spare parts. Besides moratorium on payments, they also demanded support fund for 12 months on the lines of MGNREGA to support basic salaries with direct transfers to affected amusement industry employees.