Interview with Macquarie Leisure's Chief Operating Officer
Name: Noel Dempsey
Title: Chief Operating Officer (Macquarie Leisure) [now Dreamworld/WhiteWater World CEO]
How has attendance been this season?
In the year to June 2008, attendance to Dreamworld was up 3.8 per cent to 1.421 million visitors -- a solid result given the abnormally long and very wet tourist season that impacted the peak holiday period at the start of 2008. WhiteWater World also showed robust growth and for the six-month comparative period ending June 30, 2008, attendance grew by 9.3 per cent (note: can only compare six months given WWW opened in December 2006). Among this, the short drive market grew 7 per cent, while international markets grew 47.2 per cent, albeit off a smaller base, with solid performances from the UK, Hong Kong, Singapore, Korea and Japan. With respect to the results issued this Monday, DW and WWW have continued to deliver solid growth despite a global financial crisis. In the recent quarter 2008/2009, 370,566 visitors went through the turnstiles at Dreamworld -- up 5.4 per cent with first quarter revenue up 2.2 per cent to $23.7 million over the previous corresponding period.
Do the parks currently have plans for any new attractions within the next few years? If so, what type(s)?
We've just come off the back of launching a $60 million water park, a $10 million moto-coaster thrill ride and a SpongeBob FlyPants ride aimed at the pre-teen market. Our immediate focus this season is to drive visitors to The Mummy -- a walk through scare attraction that opened in September and is designed to reflect the look and feel of the third instalment of the popular The Mummy series. In the two months since opening, visitation has been extremely strong, with guests claiming that it is definitely the scariest thing they've experienced. Over the past five - eight years, our strategy has been to align with brands that have massive appeal and cut through with different demographic segments (i.e. Wiggles World for toddlers, Nickelodeon Central for “tweens” and Mick Doohan for thrill seeker). Looking forward, we will continue to seek opportunities to bring rides and attractions that are themed and associated with popular characters and heroes to the Australian public. We are also looking to breed our Bengal Tigers which have massive appeal with all demographic groups and to begin Phase Two of the water park.
Do you feel the current financial problems facing Australia will affect business for the parks?
There are two arguments here: On one hand, a decline in discretionary spend can eat into available funds for leisure activities, while on the other, the recent soft dollar and the high fuel surcharges may divert mid and long haul holiday plans back to the local market. What we have seen in the USA with the concept of the “staycation” whereby the consumer holidays in their own backyard may well happen here -- and that bears well for us given that almost 40 per cent of our gate comes from a 90-minute drive radius. Also, what you will find is that in tough times, hero brands tend to survive. Dreamworld has been entertaining local and international guests for 27 years and is well regarded as a market leader.
What particular aspects of the park do you prioritise the most to ensure that guests get the most out of their day?
We are the only theme park in the country with both a wet park and a dry park experience located within footsteps of each other via an internal gate. Whereas, theme park visitors would traditionally need to choose a single dimension experience, they now have the convenience to tailor their own adventure and move freely between two parks in one day; that means they can get drenched on some of the hottest waterslides on the planet at WhiteWater World and then get dry on Dreamworld's legendary Big Six thrill rides, as many times as they like. It has been really interesting to observe how different segments now use the parks. For example, teenagers will go full throttle, taking on the Big Six thrill rides at Dreamworld in the morning and then head over to the water park to chill out for the afternoon while children aged eight - 12 will explore Nickelodeon in Dreamworld and then target Nickelodeon Pipeline Plunge at WhiteWater World. These kids go backwards and forwards all day long -- dragging their parents along for the ride. Then you have our real littlies who can't get enough of Wiggles World and Wiggle Bay -- any kind of wiggly fun! WhiteWater World has also redefined what a water park means to people. When shaping WhiteWater World, the goal was to appeal to a broader theme park market ranging from toddlers through to grandparents to provide a “new world of water” where guests can choose their own adventure and thrill level against the backdrop of entertainment and learning partnerships with The Wiggles, Nickelodeon and Surf Life Saving.
Do you feel you are under pressure to increase Dreamworld's/WhiteWater World's green credentials and how are you doing this?
Most people have visions of thrills and spills when they think of Dreamworld and White Water World. But behind the colourful gates are two parks with a giant heart, actively committed to environmental conservation and now sustainability. Dreamworld and WhiteWater World is the first theme park globally to sign up for Green Globe accreditation and since July 2008, we have been recording and monitoring our environmental footprint in terms of water and energy consumption and waste production. With that information now in hand, we are embarking on the second phase: coming up with strategies to reduce our footprint and move closer to long term environmental sustainability. It's a long journey and we have only just started, but we will run an internal campaign to get all team members on board. WhiteWater World takes a proactive approach to environmental sustainability, using cutting edge technology to improve performance and implement world class water conservation initiatives. The park's approach to conservation is about finding the balance between preserving the important role WhiteWater World will play in providing an entertainment and leisure experience to South East Queensland and preserving the region's water supplies.
Where do you see the park in ten years?
In 1981, Dreamworld's founder, John Longhurst, purchased 85 hectares of land. In the 27 years since, we've created (and sometimes recreated) more than 40 rides and attractions to become the ultimate entertainment precinct in Australia. There are still 50 hectares of land remaining so the future for us is very bright.
