Dubai Parks and Resorts losses widen but project on track

Dh29.6 million third-quarter loss reported but the project is 73 per cent complete.

The Rajmahal Theatre at Bollywood Parks Dubai. Courtesy Dubai Parks

The Dubai-listed theme park company behind plans for three Florida-style theme parks due to open next year posted a Dh29.6 million third-quarter loss while adding that the project is 73 per cent complete.

Dubai Parks and Resorts said that losses for the three months to the end of September widened from Dh29m in the second quarter and Dh13m in the first quarter as work on the Dh10.5 billion project progressed.

The theme park operator did not give a comparable figure for the third quarter of last year because it was listed only last December. Because the park is under construction, it did not have revenue to report.

In a filing to the Dubai bourse on Wednesday, Dubai Parks & Resorts said that cumulative spending at the project (including land acquisition) had reached Dh4.8bn, an increase from Dh3.8bn as at the end of the previous quarter, while structural work was now 73 per cent complete, up from 57 per cent in the second quarter.

Dubai is counting on its entertainment and theme parks sector to help it maintain its rapid growth in tourist arrivals, which it plans to nearly double to 20 million by 2020.

Dubai Parks and Resorts said that the 25 million square feet park, which will comprise Legoland Dubai, Motiongate Dubai and a Bollywood theme park as well as a water park and a hotel, remained on course to open on Sheikh Zayed Road in October 2016.

The company added that it had received 12 lease proposals from companies looking to take space in its 220,000 sq ft Riverland district shopping, dining and entertainment mall, accounting for 19 per cent of the space.

Dubai Parks and Resorts, part of Meraas Holding which is owned by Dubai’s ruler, is forecasting 6.7 million ticketed visits in 2017, the first full year of operation, helping to produce revenue of Dh2.4bn.

“We have reached a critical milestone in the construction of the region’s first integrated theme park resort and are now less than 12 months away from the official opening of Dubai Parks and Resorts,” said Raed Al Nuami, the chief executive of Dubai Parks and Resorts. “With construction of the individual parks progressing rapidly, you can now truly begin to appreciate the size and diversity of offerings at our resort.”

He added that 11,000 workers and 34 contractors were currently on site.

This month the company started negotiations with travel operators in an attempt to sign “dozens” of deals designed to help it meet sales targets.

The company has not yet revealed ticket prices, saying rates will be comparable to other UAE attractions such as the Aquaventure Waterpark and Yas Waterworld. Day passes for the latter attraction start at Dh240 for an adult.

The company shares increased 3.39 per cent in trading to close at Dh1.22.

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