AMUSEMENT and theme parks have suffered RM240 million in losses due to the industry’s shutdown under the movement-control order (MCO) since March 18, said the Malaysian Association of Amusement Theme Park & Family Attractions (MAATFA).

President Richard Koh told The Malaysian Insight that theme parks in Selangor are the worst hit, but fortunately, none nationwide has gone bust.

Some of these parks have diversified their business, such as by venturing into online food delivery, to sustain themselves, he said.

“The theme park industry is severely hit by Covid-19. Companies are suffering millions in net losses due to the high, fixed operation costs, such as rental and employee salaries.”

He warned that a continued closure will see some parks being shuttered permanently.

“If theme parks are not allowed to resume operations soon, there might be some owners who will announce bankruptcy because of the heavy costs and capital commitments.”

He urged the government to subsidise all permanent staff under the Wage Subsidy Programme instead of limiting it to 200 per company, adding that most theme parks have terminated contract workers to cut cost.

Some industry players ventured into online food delivery to survive the shutdown during the MCO, he said.

“MAATFA has requested the government to grant a waiver on utilities, assessment, business licence and salary subsidies.”

New norm post-MCO

Koh said theme parks will not face major challenges reopening in the new normal, especially when it comes to implementing measures like social distancing.

“People are ready to go to public places so long as safety and health precautions are in place.

“Guangzhou Safari & Marine Park in Zhuhai and Universal Orlando have reopened. SeaWorld Orlando plans to reopen on June 11, and Disney World on July 11.

“Yes, we are ready for the new normal. We have been planning and setting up new standard operating procedures for the reopening of our theme parks.

“In the meantime, staff are provided with training and guidance on the new SOPs,” he said, adding that association members are committed to a recovery.

Theme parks are known for their stringent safety measures, he said, and have allocated capital expenditure for virtual queues and online ticketing, among others.

“Limits on the size of the park, rides, facilities and business outlets will obviously restrict the potential operating conditions and revenue.”

He said additional investment is required to grow revenue.

At the same time, operation costs are expected to increase given the requirement for masks, disinfectant and other items needed to maintain hygiene standards.

Operating with limited capacity will also result in a loss of revenue, added Koh. – June 11, 2020.