Global theme parks are rushing to enter the Middle Eastern market. This aims to target the demand from Middle Eastern countries looking to lower their dependence on oil and activate their tourism industry.
According to major foreign media outlets, including The New York Times (NYT), Disney recently announced plans to establish a Disneyland theme park on Yas Island, a famous tourist destination located about 20 minutes from Abu Dhabi in the United Arab Emirates (UAE). This will be Disney's seventh global theme park, and it's the first announcement for a major global theme park development since the Shanghai Disneyland announcement about 15 years ago in 2010.
Yas Island is already home to famous global theme parks such as Ferrari World, Warner Bros. World, and SeaWorld. Ferrari World is also the world's first Ferrari-branded theme park. Additionally, various facilities, including sports venues, concert halls, golf courses, beaches, and shopping malls, are established on Yas Island.
Several theme parks are also planned for 'Qiddiya City', currently under construction in the southwest of Riyadh, Saudi Arabia. The world's largest amusement park company, the American Six Flags, plans to install the world's highest roller coaster at the Qiddiya theme park, and a theme park based on the Japanese animated series 'Dragon Ball' is also being developed.
The reason global theme parks are simultaneously entering the Middle East is that the interests of Middle Eastern countries and theme park corporations align. First, countries in the Middle East, such as the UAE and Saudi Arabia, are trying to activate tourism to lower their reliance on oil. The Wall Street Journal (WSJ) reported that 'these governments and related corporations are investing billions of dollars into large tourism projects, creating a 'hot place' in the middle of the desert.'
Peter Weyshar, director of the theme experience master's program at the University of Central Florida, noted, 'Middle Eastern countries are looking for opportunities for their citizens to enjoy travel without leaving the region,' adding that 'it is natural for theme parks like Disney to set up here.'
Theme park corporations facing declining profitability in other regions also find themselves in need of new markets. They can particularly target India, a 'population giant' close to the Middle East. Flights from major cities in India, such as Mumbai and New Delhi, to Abu Dhabi take less than four hours, making it easily accessible to India's rapidly growing middle class, according to the WSJ.
Bob Iger, CEO of Disney, remarked on the construction plan for the Abu Dhabi theme park, saying it 'will allow easier access for millions of people at various income levels,' and added that 'it previously took significant time and expense for people to visit one of Disney’s six locations.'
The market potential is also high. The UAE aims to attract 39 million tourists by 2030. As of 2023, the number of visitors to Yas Island has reached 34 million, about 14 times the population of Abu Dhabi (2.5 million). According to the International Association of Amusement Parks and Attractions, theme park-related attractions in parts of the Middle East and Africa generated $24.3 billion (approximately 34 trillion won) in revenue in 2022.
However, operating theme parks in the Middle East is not without challenges. In summer, temperatures exceed 100 degrees Fahrenheit (approximately 38 degrees Celsius), and the sand blowing from nearby deserts makes construction difficult. Additionally, balancing cultural norms among visitors from various countries and Arab culture is also a significant task. Due to these various difficulties, construction of the Universal Studios in Dubai has been halted, and the Bollywood theme park closed in 2023, only seven years after its opening.