Legoland M'sia sees RM100m revenue in first year

KUALA LUMPUR (Aug 5, 2012): Legoland Malaysia, which is slated to open on Sept 15, expects to generate more than RM100 million in revenue in its first year of operations, said its general manager Siegfried Boerst. "This would come from all the attractions in the park, restaurants as well as retail outlets," he told SunBiz recently.

"We should see operational profit from the first year, but to recover our (full) investments will depend on the long-term development of the park, which usually takes about 15 to 20 years," he said. Thus, Boerst said it would be a challenge for Legoland Malaysia to recover its capital investments in less than 15 years due to its high set-up costs and as it wants to keep its entry passes affordable.

Despite this, he said Legoland Malaysia will continue to invest every year in its theme park so that visitors will return and to offer them a "larger experience" in terms of attractions in the future. Over one million people are projected to visit the 30.76ha outdoor theme park in Nusajaya, Johor, annually over the first four years of its opening. Legoland Malaysia is the first Legoland in Asia and sixth in the world. It features seven themed areas with more than 40 interactive rides, shows and attractions.

There will also be a Legoland Malaysia Water Theme Park and Legoland Hotel that are expected to open in the second half of 2013 and in 2014, respectively. The cost of the theme park and waterpark is RM720 million, while that of the hotel is RM190 million. Boerst said in the initial years, one-third of the theme park's visitors are expected to come from Johor and Singapore; one-third from Kuala Lumpur, Penang and other states and the rest to comprise international tourists.

"With the (opening of the) hotel and the water theme park, we hope to grow the international market as we want to make Iskandar Malaysia and the southern Malaysia region into an international tourist destination," he said, adding that there are not many international first-class theme parks in Asia yet compared with Europe and the US, which signifies huge potential for operating theme parks here. "Asians value their family and children so they're always looking for (theme park) alternatives. Moreover, Asian families still have many children, more so than the European families. That's why Asia is such an important market for us, as well as for Merlin Entertainments, of which Legoland theme parks form part. "We see good growth potential in Asia, and we're convinced if we can offer a first-class experience it will be attractive for Asians to visit," he added.

On plans to open new Legoland theme parks, Boerst said it is looking at Asia but not Southeast Asia. "We're looking at South Korea or Japan and we should have at least a Legoland in Asia between 2015 and 2020," he said. Legoland parks are based on the popular Lego construction toy range. Other Legoland theme parks are in Denmark, the UK, Germany, and Florida and California in the US.

- www.thesundaily.my