Everyone is familiar with the well-known Six Flags theme parks. Six Flags is a theme park company that operates over forty theme parks around the world. As Six Flags is also an American company, the majority of them are in the United States.
DXB Entertainments is the operator of Dubai theme parks. It has shelved plans for a Six Flags theme park, which was previously a part of its anticipated plans. The halt in construction for an indefinite period of time is due to lack of financing.
The company said in a statement, that the decision comes after a strategic review of DXB Entertainments’ future development plans and capital allotment, which the board commenced in August last year. Six Flags theme park Dubai was previously scheduled to open this year.
DXB Entertainments said in an official statement,
“In the intervening period, actions, including formal notification by [Texan amusement park operator] Six Flags, resulted in funders’ concerns being raised specifically in relation to the revised projections for the Six Flags Dubai Project”.
“As a result, the syndicated finance facility intended for utilisation as part of the development of the Six Flags branded theme park is no longer available, and the Six Flags Dubai project cannot proceed at this time.” The company added.
Renowned real estate developer in Dubai, Meraas Holding holds a 52.3% stake in DXB Entertainments. Meraas has been working to pay down losses incurred to the company in the past few years thus cannot afford to pour money into the Six Flags theme park. The DXB Entertainments currently operates Dubai Parks and Resorts. It also has the franchises for Legoland Dubai and Motiongate in the region. It runs the iconic Bollywood theme park that attracts a large number of visitors throughout the year.
DXB Entertainments restructured the bank debt of AED 4.2 billion last year. It also received new funding from Meraas Holding to cope up with its deteriorating financial condition. In the third quarter of 2018, DXB Entertainments reduced its losses by 4.5% to AED 271.4 million from the year earlier period, having previously reduced the second quarter losses by 11% year on year to AED 255 million. The company has not yet reported the fourth quarter earnings publically.
The number of visitors to DXB Entertainments’ parks is constantly rising with an increasing number of tourists. Total footfall in the parks increased 5% to 501,394 in the third quarter of last year, despite being the slowest time of the year due to scorching heat in the summer season. The footfall was revealed by Mohammed Abdulla, the company’s chief executive and managing director.
Average occupancy rate at the Lapita hotel in Dubai Parks and Resorts managed by DXB Entertainments has also seen an impressive rise of 66% in the third quarter of 2018, an increase from 42% in the same period of 2017.
Theme parks and attractions are now in trend and new attractions and theme parks are popping up in the Arabian Gulf region. DXB Entertainments launched the first attraction by the company in 2016. However, it struggled to meet the initial target for the number of visitors it expected after the launch and that’s why it had to delay the date of opening all of its other attractions. Saudi Arabia, the neighboring oil giant, is also heavily investing in expanding the domestic entertainment industry; there are also plans for a Six Flags theme park in the kingdom in the coming years. As far as Dubai is concerned, the Emirate already has a number of theme parks including Motiongate and Legoland, the dwellers and visitors both have a lot of options to enjoy in the city