Roller Coaster Ride

The association puts the number of parks at 100, excluding the innumerable small parks in resorts and hotels across the country. Rs 1,500 crore is no mean amount, but the industry remains largely unregulated and subject to high taxation, thus hampering its growth prospects. 8216;8216;We feel like orphans,8217;8217; says Ashok Goel, director, EsselWorld. 8216;8216;We are seeking a regulatory framework that doesn8217;t create impediments, but at the same time, rationalises the taxes we have to pay.8217;8217;

Parking problem

Internationally, amusement parks are considered as social infrastructure and like roads, schools and stadiums, are regarded a part of the population8217;s basic need. 8216;However, in India it is still considered a purely commercial venture,8217;8217; rues Goel. Which is why it attracts huge entertainment and other taxes. Since amusement parks do not come under the Central government, they have to follow different rules in different states. 8216;8216;States charge anything from 0-50 per cent as entertainment tax,8217;8217; informs Goel. Despite that, prices have to be kept low. 8216;8216;The entry charges in India are the lowest in the world, at US 2-3 a day,8217;8217; says IAAPI president Balwant Chawla, who runs theme parks in Gurgaon and Nagpur. Amusement park rates in neighbouring Thailand stand at 10 a day, while the US Disneyland charges a whopping 60. 8220;Foreign investors are still shy of this market as it8217;s economically unviable for them,8217;8217; explains Chawla. Finally, the mindset also has to change. There is still some hesitancy about sitting on hi-thrill rides. 8216;8216;If 1,000 people come near a hi-thrill ride, 100 will stand in line, and eventually 10 will actually get on,8217;8217; says N D Rana, chairman, Saya Amusement Manufacturing, which has parks in Ahmedabad, Rajkot and Baroda.

Rise and shine

In spite of the problems it faces, the theme park industry players agree that the number of parks across India will multiply. The south, which has a Rs 1,000 crore existing investment corpus, appears to be leading the way. 8216;8216;Southern India will be getting fresh investments of up to Rs 500 crore within the next two years,8217;8217; says Chawla.

Parks are being planned in Trichirapalli, Salem, Kodaikanal, Tirupati and Vizag.

Plus, there is the recent trend of corporate interest in amusement parks. For example Unitech, a leading Delhi-based construction company, is building a park in Gurgaon to complement its budding township there.

Expect amusement parks of the future to have more than just rides and food stalls. People like VGP Ravidas, managing director of VGP Universal Kingdom in Chennai, among the largest parks in the south, already recognise this. 8216;8216;We constantly try to do something innovative,8217;8217; says Ravidas. Last month, a group of Hollywood stunt artists performed a Wild West act at his park.

Wish-list

While all players agree that the industry may take another five years to mature, they want the centre to show the way. The IAAPI has been constantly approaching the government for a uniform tax structure. This should help reduce tax and make their parks more viable. That may finally attract the elusive foreign investors. Also, concerned about the lack of safety regulations for amusement parks, the association has submitted draft safety rules to the Bureau of Indian Standards BIS. Pending cabinet approval, the rules will become applicable by law. The BIS nod might come soon, but as regards government support, the players are resigned to a long wait.