| Extreme Opportunity |
 |
By Frank Seninsky
This past month's Fun Expo/AMOA Expo introduced many in the amusement
industry to a relatively new form of recreation that falls under
the broad heading of extreme sports. These activities include skateboarding,
bicycle motorcross (BMX), paintball, snowboarding and several others.
As this article was written before the show, we as an industry
should have much more to say about how these activities can be incorporated
into our core operations in the coming months. However, based on
research I have done in the past year for several of AEM's consulting
clients, as well as searching out the skatepark association SPAUSA
(Skatepark Association USA) and introducing Heidi Lemmon to
IALEI and Fun Expo, I am already prepared to make the case that
skateboarding may well be one of the best opportunities that has
come along for our industry in the past decade. The last attraction
that had a major impact on the FEC industry was laser tag.
First, let's look at the statistics. A recent 10-year history of
sports in U.S. participation shows that in the past half-decade
for which records are available (1995-2000), for people 7 years
or older who participated more than once in a particular sport,
skateboarding has seen increased participation of more than 100%.
That is an incredible increase and leads the list of increased participation
far and away. During the same time period, inline roller skating
decreased by 39% and traditional roller skating saw a drop of close
to 50%. A close look at the numbers reveals that most of the traditional
participation sports were on the decline, while participation in
extreme sports like skateboarding and snowboarding saw steep increases.
In fact, over 9 million people participated in skateboarding, according
to the figures. That's more skateboarders than people who play tackle
football and about a third the number of people who play basketball!
It's almost equal to the number of people who play tennis, and these
are 2000 figures, so these increases have probably gone up even
more in the past two years.
Interestingly, inline skating (rollerblading) began to take off
in 1990 and grew continually through 1998, when it began to see
large declines in participation. Meanwhile, traditional rollerskating
was flat in terms of participation for many years, and then it just
seemed to fall off the end of the earth in 1998. That year seems
to have represented a significant cultural shift for many youngsters
as extreme sports began to rise in popularity and the popular razor
scooters were introduced as a fashionable mode of transport.
This wave of popularity actually represents a second life for the
skateboard with improvements in board design and a wider availability
of truly smooth concrete services, raising the level of skating
performance. Skateboarding is a lot different now then when I was
a kid in the late '50s and early '60s. Back then, we would separate
one roller skate (the adjustable ones) and attach the wheels
to the front and back of a homemade wooden board (skateboard)
and off we would go (downhill) in-between the cracks in the sidewalks.
Safety was certainly not a concern!
Currently, the skateboarding industry has largely been connected
with public projects (i.e., park developments funded and overseen
by local governments as opposed to private enterprise). Yet it is
ideally suited for the for-profit amusement industry, representing
a nearly identical
demographic to our attraction business. A Matrix Group roller skating
survey conducted in 1999 reported that 75% of the people who skate
indoors are between the ages of 5 and 14. So that suggests that
kids comprise a large majority of the overall skating market. The
surveyed skaters said they enjoyed the sport because it was fun
and offered good music to skate by and a place to hang out with
their friends away from the house. This also belies the idea that
kids just want to cocoon with their Xbox or PlayStation. In reality
they really desire to gather for fun, but they want to do something
that is perceived by their peer group to be cool or fashionable.
The skateboarding industry also provides FECs with an affordable
attraction with, for example, 18,000 square feet of skating apparatus
going for approximately $100,000,including hardware and installation.
Ramp materials range from wood, which is affordable but high-maintenance,
to steel and concrete. Most existing commercial skateparks charge
a flat fee for each session with a discount offered for skaters
who purchase an annual membership and a multiple visit package.
All in all, the cost is reasonable (within the leisure entertainment
per capita levels), and the return on investment is attractive.
It's a perfect product for our market. Moreover, skateparks
have not penetrated our market yet, so it still represents a considerable
growth opportunity for the FEC industry.
This trend remains new enough for our industry to capitalize on
this for some time to come. But there is an education process that
must take place. While inliners have been embraced by society, skateboarders
have yet to be assimilated, and that's what makes it attractive
and cool to the younger participants. People are often intimidated
by skateboarding, and that is why many venues have yet to see the
tremendous opportunity connected with offering skateboarders somewhere
to enjoy their sport. There is also a never-ending progression of
new challenges that are being developed for and by skateboarders
and bicycle motoreross (BMX), thus providing the sport with tremendous
longevity potential.
In fact, the only major players who have begun to capitalize on
this trend opportunity are suppliers to the industry, like the Vans
shoe company, which has opened a chain of skateparks in conjunction
with the Mills mall chain.
Much of my research is based on feasibility studies that AEM conducted
last year about developing a skatepark for existing FEC facilities,
along with including them in several indoor as well as indoor/outdoor
projects. In addition, Alpha-Omega Amusements has had the opportunity
to operate games in FECs that include a skatepark. The skatepark
is such a positive feature because it brings in significant new
revenue but doesn't cannibalize many of the existing attractions.
This is another way to extend the life of your FEC and generate
considerable local attention. And don't forget about the parents
and other spectators who come to see all of the action and spend
money in your FEC. It also opens up a lot of merchandising opportunities
in terms of selling the gear that goes along with the sport.
Moreover, I would think our industry would be a natural with the
marketing of this sport in terms of tiered competitions, party events,
lock-ins, etc. The last great attraction invented for FECs was laser
tag. I strongly feel, especially for indoor locations that have
the required space available, that skateboarding might well be the
next great FEC attraction, along with paintball, which is also finding
a FEC niche market, primarily as an outdoor attraction.
There are people who are already, integrating skateparks into their
locations. Unfortunately, not all the FEC owners in this country
are going to see this as a great opportunity, and somebody else
in their community will open up a skatepark and steal that customer
base. These locations can be built quickly and for a reasonable
price, so now is really the window of opportunity. If you miss it,
you might have to wait another decade for the next big trend.
There is one location in my area that built one skatepark and it
took off so well, they are installing a second one! That's what
this industry is all about: making your facility flexible and being
able to change out attractions. I have been saying this same thing
for 15 years, but I think people continue to miss the point. These
skateparks have the potential to generate a healthy profit for location
operators. The initial cost is not much more than I paid for half
a dozen new sit-down driving games for my route! So even if
you believe that skateparks are a fad that will only last five years,
you will be shocked when you do the math and calculate the ROI!
At present, many of the municipal skateparks are very informal
and are unsupervised. The number of for-profit locations are estimated
to be under 100, I would imagine, although there is probably the
potential for thousands of locations, especially some innovative
ones developed through a combination of public and private money.
This is something our industry has long needed to focus on.
So if you're looking for a new attraction, do yourself a favor
and look into skateboarding. If you attended the Fun Expo, you already
learned much about skateboarding and skateparks by seeing first-hand
a working skatepark attraction and by attending a few of the several
great seminars on this topic. If you did not attend, shame on you!
But at least you can still read about it in the trade press and
hear the information by purchasing the seminar tapes.
Here are some of the quality skatepark manufacturers that I have
gotten to know over this past year:
• RCMC, Rick Carje, earje@earthlink.net, www.rcmcsk8parks.com
• RAMPTECH, Mike Mapp, www.ramptech.com
• Grindline, Chris Hildebrand, www.grindfne.com
• Mike Taylor, tay1or4343@earthlinknet • Tim Payne,
Cpain@aoLcom, www.teampain.com
• John Tyson, Vertical Productions Industries, www.sk8ramps.com
• Wally Hollyday, www.skatedesign.com
RePIayMagazine • October 2002 |