Legoland proprietor bounces again to revenue amid tourism and staycation increase
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he return of vacationers and households having fun with staycations has propelled gross sales and earnings for the proprietor of Legoland and Thorpe Park.
Merlin Entertainments, which is without doubt one of the world’s largest operators with greater than 140 sights, theme parks and resorts, mentioned it had tens of millions extra guests final 12 months.
The multinational group noticed its revenues surge by 60% to £2 billion over 2022, in comparison with 2021, and surpass pre-pandemic ranges.
It returned to a pre-tax revenue of £136 million after sinking to a lack of £94 million in 2021.
It got here as 56 million folks visited its sights, 21 million greater than the 12 months earlier than, which was affected by Covid lockdowns and social restrictions.
However, the group has not but seen its customer numbers return to pre-pandemic ranges within the UK, with them standing at about 75% of 2019 ranges, chief govt Scott O’Neil mentioned.
Mr O’Neil mentioned that particular person theme parks usually increase costs after a giant funding at a web site – such because the £17 million World Of Jumanji attraction launching at Chessington World Of Adventures final 12 months.
“What we are also finding is that because these [visits] are becoming more important and bigger days out, the spend seems to be higher”, he informed the PA news company.
It displays a “flight to quality” the place folks wish to take pleasure in day journeys or quick breaks at manufacturers they know, and a higher post-pandemic appreciation of experiences, Mr O’Neil mentioned.
Merlin mentioned the start of 2023 received off to a flying begin, with revenues and guests up 30% year-on-year over the primary quarter.
Sales per customer grew amid the return of worldwide tourism to cities corresponding to London, the place Merlin runs sights just like the London Eye and Madame Tussauds.
The firm additionally mentioned its sights in Asia have been recovering, after years of restrictions in China beneath its strict zero-Covid coverage, which eased firstly of the 12 months.
Mr O’Neil added: “Although international tourism numbers are returning to pre-pandemic levels at different rates, domestic travellers seeking more connection and experiences with family and friends continue to enjoy the immersive and joyful escapism of our city attractions, resort theme parks, and Legolands through day visits, overnight, and short-break stays.
“Accommodation revenue was up approximately 55% in 2022, as guests chose to stay in our creative offerings, including treehouses, castles, and log cabins from California to London, and we are confident our themed accommodation will be popular at our flagship Legoland Resort being built in Shanghai.”
More folks booked stays at resorts like Alton Towers within the UK and Gardaland in Italy, Merlin mentioned, reflecting rising demand for staycations.
In phrases of the UK particularly, our VAT is considerably larger – double that of Spain, Italy, and France . And so we’re at a aggressive drawback
Merlin, which additionally owns Peppa Pig theme parks, is ready to open new resorts in Germany and the US subsequent 12 months.
The chief govt additionally known as on the Government to take “swift, decisive action” to convey again a tax lower for vacationers and encourage extra spending.
“In terms of the UK specifically, our VAT is significantly higher – double that of Spain, Italy, and France. And so we are at a competitive disadvantage.
“So as travellers become smarter shoppers, and they do online comparisons, we definitely are advocating for the UK to roll back the VAT.”