Amusement parks and theme parks
Source: gov.uk (2025-04-28)

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Scope

This Instruction applies to all Amusement Park and Theme Park premises.

Amusement Parks and Theme Parks vary considerably and are frequently individual in nature. They form part of a spectrum of leisure attractions containing pleasure piers, amusement parks, zoos and safari parks and theme parks. Often distinctions are not clear cut, as can be seen by the gradual metamorphosis of Chessington Zoo into Chessington World of Adventures.

“Theme Park” is an American term, originally describing a park where attractions centred around a theme or themes. Over time this term has become widened to cover large leisure parks, generally, although not always, situated on inland sites and containing a significant number of different “white knuckle” or “pink knuckle” rides. There are also a large number of ancillary attractions, stalls, retail and restaurant facilities etc.

The British Association of Leisure Parks, Piers and Attractions (BALPPA) distinguishes theme parks from amusement parks (“traditional parks”) on the basis of pricing policy. A theme park will charge a single entry fee per person, with all rides thereafter included in that price, whereas an amusement park will allow free or nominal entry but require payment on a ride by ride basis. Whilst not definitive, such a distinction provides a useful guide.

Amusement parks were traditionally associated with coastal resorts although the increase in inland theme parks, resulting in the upgrading of many coastal amusement parks to compete, has led to the distinction becoming blurred. Over more recent years farm diversification has led to Farm Park attractions. There are a few instances where these have been developed to such an extent that there may be little to differentiate them from a small theme Park. Refer to section 385 Farm Diversification for the approach to Farm Parks.

2. List description and special category code

Amusement parks

List description: Amusement Park and Premises

Primary Description Code: LT4

SCAT code: 012, suffix S/G

This is a split class of property with Valuers in each Business Unit valuing the more complex and larger properties.

Theme parks

List description: Theme Park and Premises

Primary Description Code: LX

SCAT code: 280, suffix N

This is a national specialist class of property dealt with by the National Valuation Unit.

3. Responsible teams

Paragraph 2 above details the team/s responsible for each of the classes covered by this Section.

4. Co-ordination

The Class Co-ordination Team has overall responsibility for the co-ordination of these classes. The team are responsible for the approach to and accuracy and consistency of valuations. The team will deliver Practice Notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists. Caseworkers and referencers have a responsibility to:
- follow the advice given at all times
- not depart from the guidance given on appeals or maintenance work, without approval from the co-ordination team
- seek advice from the co-ordination team before starting on any new work
5. Legal framework

Apart from the usual planning and licensing requirements associated with the operation of properties in these classes there are particular health and safety provisions that need to be adhered to.

The Health and Safety Executive works closely with the members of the Fairgrounds and Amusement Parks Joint Advisory Committee to improve standards.

The Amusement Device Inspection Procedures Scheme (ADIPS) ensures that amusement devices are checked for safety before they are first used and at least once in a 12-month period thereafter to assess their ability to operate safely throughout their working life.

ADIPS involves a series of pre-use and in-service inspections, and applies to all fairground rides and amusement devices. ADIPS is managed by the Amusement Device Safety Council (ADSC), which comprises all major industry trade associations, and is supported by the Health and Safety Executive (HSE).

Once all mandatory inspections are satisfactorily completed and a report has been issued an Inspection Body can issue certification known as a Declaration of Operational Compliance (DOC). An ADIPS DOC is widely accepted and recognised ride certification. With around 7,000 certificates being issued each year throughout the UK and accepted as the best practice means of demonstrating amusement device safety.

ADIPS Ltd. maintains a central database of registered amusement devices, their DOCs and inspections.

6. Survey requirements

Amusement parks and theme parks should be measured to Gross Internal Area (GIA) in accordance with the VOA Code of Measuring Practice. A site plan is essential showing the location of the different attractions. Site areas should also be measured.

Care will be needed to correctly identify and measure rateable plant and machinery, particularly having regard to any changes as a consequence of the Valuation for Rating (Plant and Machinery) England Regulations 2000,,SI 2000, No.540 and for Wales, Valuation for Rating (Plant and Machinery) Wales Regulations 2000 SI 2000,No. 1097 (W75). Monitoring of frequent changes to rides and facilities will be required.

7. Survey capture

In all cases plans and surveys should be stored in the property folder of the Electronic Document Records Management (EDRM) system.

8. Valuation approach

8.1 Rental method

Rents may provide the best evidence of value although it is unlikely there will be much rental evidence available.

8.2 Receipts and expenditure method

Given the commercial nature of such enterprises use of the receipts and expenditure (R&E) method is the preferred valuation approach. Careful scrutiny of accounts and/or receipts information will be required and revenues or costs relating to other than the subject hereditament should be taken out.

Valuations arrived at using a full R&E valuation should be analysed as a percentage of gross receipts to facilitate comparison with other amusement and theme parks where full accounts are not available.

Care needs to be exercised to ensure that all income has been included. Where the subject is part of a group, eg Merlin Entertainments, sales of an annual ticket, which provides access to all sites in the group, may be accounted for in a separate company.

It is not unusual with these types of hereditaments to find concession occupations. Checks must be made to ensure that any such occupations are identified, terms of the concession understood and the appropriate income identified and valued correctly.

8.3 Percentage of gross receipts

This should be used as a method of comparison of valuations derived from a full R&E, and of valuing hereditaments for which full accounts are not available.

9. Valuation support

All valuations should be entered onto the Non-Bulk Server (NBS) under the relevant Scat Code.

Additional support is available through:
- Survaid
- Class Co-ordination Team for Leisure Attractions
Practice note: 2023 - amusement parks and theme parks

1. Market Appraisal

1.1 Amusement and theme park companies operate a variety of attractions, such as mechanical rides, water rides, games, shows, theme exhibits and picnic grounds.

1.2 Between 2016 and 2021 and in line with an increase in real household disposable income, amusement parks and theme parks encountered increased park attendance and spending. This was exemplified by larger attendance figures at the industry’s four largest theme parks prior to the COVID-19 (coronavirus) outbreak.

1.3 Consumer confidence is expected to increase in 2021-22, as a result of the projected economic recovery from the COVID-19 (coronavirus) pandemic, representing an opportunity for industry operators.

1.4 Although there are a large number of leisure attractions that compete with theme parks, there are fewer than 20 major parks in the UK due to the high barriers to entry and a growing life cycle stage. One operator dominates the industry in the UK and own several family entertainment brands.

1.5 In recent years there has been a greater move towards providing overnight accommodation and an emphasis towards using the parks as a short holiday opportunity rather than a day trip.

1.6 Individual sites’ performance will differ subject to the level of investment undertaken by the particular operator, although product investment across the industry as a whole has seen improved momentum across most theme park operators. Since the last Practice Note there have been several examples of significant investment at theme parks with new rides.

1.7 Reports suggest a 40% growth in total theme park revenue between 2008 to 2018. In 2019, activities of amusement parks and theme parks generated a total revenue of £982,000,000. The strong growth in the industry is helped by the desire to stay at home or ‘staycations’ which have not declined in recent years.

1.8 Amusement & Theme Parks in the UK industry statistics for 2021:

Market Size: £885.4m in 2021

Number of businesses: 506

The Amusement & Theme Parks industry in the UK is the 7th ranked Arts, Entertainment and Recreation industry by market size and 370th largest in the UK

1.9 The COVID-19 pandemic impacted the Amusement and Theme Park industry in the period leading up to the AVD (1 April 2021). Details of the various restrictions implemented by statute in response to the pandemic, and of the vaccination rollout, can be found online. In February 2021 the UK Government published its Roadmap out of lockdown for England which set out four steps to relax restrictions. Step 1, easing restrictions on outdoor gatherings, had already taken place by the AVD.

1.10 The later three stages of the Roadmap for England included:
- the opening of outdoor hospitality, and non-essential retail (Step 2, no earlier than 12 April);
- most legal restrictions on meeting others outdoors to be lifted, opening of indoor entertainment venues such as cinemas, casinos and bingo halls (Step 3, no earlier than 17 May 2021); and
- the removal of remaining restrictions on social contact (Step 4, no earlier than 21 June)
Subsequent to 1 April 2021 steps 2 and 3 took place as planned, but Step 4 was delayed four weeks to 19 July.

1.11 The situation in Wales, both leading up to and after the AVD, was similar although not identical.

2. Changes from the last practice note

2.1 There are no changes to the last practice note

3. Ratepayer Discussions

3.1 No overall industry discussions, although individual operator meetings have commenced.

4. Valuation Scheme

4.1 Valuation guidance on these classes for 2023 is contained within RM: Section 6: Part 3 S1085: Leisure Attractions: Practice Note 1: 2023.

4.2 In the absence of reliable rental information, the initial valuation consideration is to determine the Fair Maintainable Trade (FMT) as at the Antecedent Valuation Date (AVD), 1 April 2021.

4.3 FMT is an estimate of annual receipts that could be derived by occupying the property and conducting the subject business operation with the skill and expertise that could be reasonably be expected from a potential tenant of the hereditament. This figure will represent the gross annual receipts from all sources (exclusive of VAT).

4.4 The effects of the COVID-19 outbreak need to be taken into account as they would have been anticipated by the parties at the AVD. Trade evidence that includes long periods of lockdowns is unlikely to provide good evidence of the FMT at the AVD. Valuers are advised to take as their starting point the closest reliable trade, which is likely to be the 2019/2020 trading year (ending March or before) and any previous trading years.

4.5 Having established the likely FMT for the 19/20 trading year (ending March or before), the valuer should then consider any further adjustments needed to reflect the receipts envisaged as at 1 April 2021. The reasonable efficient operator (REO) will take a view not only on the trade immediately achievable at AVD, but the trade over a period of time ahead, as they are assumed to be taking a tenancy with a reasonable prospect of continuance.

Practice note: 2017 - amusement parks and theme parks

1. Market appraisal

During the post 2008 recession the amusement and theme park sectors benefited from the trend of consumers with less disposable income staying in the UK for their holidays. Revenue growth outstripped rising admissions as operators made the most of the trend to visit attractions in the UK. This was achieved in particular by the major theme park operators through the addition of extras to increase revenue potential from visitors. As a result, people have increased their spending on premium tickets or virtual queuing options to avoid long waits for the rides.

Consequently the theme park industry came through the recession relatively unscathed. However, high overheads, such as electricity prices and staffing costs, have had an impact on the attractions’ operating margins. Staffing levels are high in theme parks and wage bills and staffing costs account for 20-33% of turnover.

Although a large number of attractions compete with theme parks, there are fewer than 20 major parks in the UK. Merlin Entertainments dominates, with its parks accounting for almost 60% of admissions and 70% of revenues. It has invested in its attractions with new rides, and its strategy of providing accommodation has also proved popular.

Reports suggest a 19% growth in total theme park revenue between 2009 and 2014, but when inflation is taken into account it means the market remains static. Individual sites will have performed differently subject to the level of investment undertaken by the particular operator. Any return to more holidaying abroad is likely to act as a drag on those that have seen strong growth in recent years.

2. Changes from the last practice note

There are no changes from the broad principles followed for the 2010 Rating Lists and the approach therefore is the same.

3. Ratepayer discussions

None at present.

4. Valuation scheme

Valuation guidance on these classes for 2017 is contained within Rating Manual: section 6 part 3 - section 1085 : Leisure Attractions: practice note 1 2017 (https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/section-1085-leisure-attractions).