25 Oct 2019
China and Saudi Arabia projects subject to potential further delays, says Six Flags boss
BY Andy Knaggs
International licensing and the scheduling of new park openings abroad continue to be a challenge for Six Flags, with parks currently under construction in China and Saudi Arabia both subject to potential further delays.
During an earnings call, the company said that revenue recognition for its Nanjing location was still suspended, with discussions ongoing with local government to obtain the necessary approvals. A second Chinese park at Chongqing had been brought forward by six months but an accompanying kid's park has been delayed by 15 months due to the city's decision to open just one park per year.
Six Flags' first Chinese park – at Zhejiang Province – is scheduled to open in 2020. In Saudi Arabia, the company is constructing a theme park as part of the Qiddiya development – a massive complex requiring significant infrastructure investment. The opening of this has been moved back by five months, to May 2023.
"The way to think about this is to understand that these developments are not just building a theme park," said Jim Reid-Anderson, chair, president and CEO of Six Flags. "In the case of China, they're building cities, basically with a theme park in the city. The same is true of Saudi Arabia: when you think of Qiddiya, they're building a massive entertainment complex that has a theme park in it. But it has a Formula One track, and it's got all sorts of other activities that are going on around it.
"Because of this, it's actually hard to be able to say this is the exact date. We use our best estimates at any point in time as to when parks open. But if a local government, in Riyadh or in Chongqing or wherever else, says that we need an extra year to be able to put the infrastructure in to support this whole area, that affects our ability to open a park.
"That's really the most important thing for people to understand. Part of it is our partner, part of it is the economy, part of it is the local government saying this is when we can have everything ready for you in order to be able to open a park. I would say right now there's a very high likelihood going forward that we will see changes in the timing of park openings. I think it's unrealistic to think it's going to be exactly as we've outlined."
In its Q3 results, Six Flags said its international revenue was US$8.3m (€7.5m, £6.4m), while its international revenues for the first half of the year were US$20m (€18m, £15.5m). The company's anticipated project in Dubai was previously confirmed as terminated, after funding problems with its partner DXB Entertainments.
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