DXB Entertainments said it is looking to India, Saudi Arabia and the UK to attract overseas tourists this year to its Dubai theme parks.
Yesterday DXB posted a loss of Dh484.8 million for last year on total revenues of Dh75.9 million. In 2015, it lost Dh110.9m but its attractions were not operational.
“A large portion of our loss reflects pre-opening expenses which are captured within our project cost,” said Raed Al Nuaimi, the chief executive of DXB Entertainments.
The DFM-listed company, which has about 3,100 full-time employees, said about Dh63.4m of revenue came from the Legoland, Bollywood Parks and Motiongate theme parks which opened between November and December last year. The Dubai Parks and Resorts complex received 323,489 visits in the last two months of 2016.
DXB’s shares closed up 2.8 per cent at Dh1.12 yesterday, down from a peak of Dh1.76 in August.
“We know that the coming quarters will be more indicative of the destination’s appeal to visitors from across the globe, as we start attracting business from global tour and travel operators,” Mr Al Nuaimi said. “We expect all remaining rides and attractions as well as the remaining units at [retail area] Riverland Dubai to be available to the public by the beginning of the second quarter.”
It is marketing the destination in Saudi Arabia, India and the UK and has also tied up with 120 hotels in Dubai to promote the parks.
“Visitation numbers at Dubai Parks and Resorts were somewhat underwhelming, falling 40 per cent to 50 per cent short of consensus expectations, and so was the reported average spend per visitor,” said Mohammad Kamal, an analyst with Arqaam Capital. “This is, however, likely to improve as the business fine- tunes the offering.”
DXB Entertainments’ Six Flags Dubai resort is on track for a late 2019 opening after construction started in July, DXB said.
At the end of last year its assets were valued at Dh12.8 billion, including Dh10.3bn in property and equipment, investment properties and inventories. It had also used up Dh3.4bn of its Dh4.2bn financing facility for the first phase of the theme park complex.
The company is exploring additional revenue streams such as to provide project management services to the developer Meraas including for the Dubai Arena, the half-million square feet entertainment destination due to open late next year.
DXB and Merlin Entertainments will also open the first Legoland Hotel in the Middle East at Dubai Parks and Resorts. The companies did not specify an opening date.
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