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Saturday, April 9, 2011

Hersheypark Bullish on Business

PennLive: In 2007, Hersheypark had one its best years. Attendance hit an all-time high, buoyed by a new attraction, the 100th anniversary of the park and excellent weather.

Then the recession hit.

In 2008, attendance dropped roughly 5 percent as unemployment climbed and families watched their budgets closely.

“Like every other business, we certainly felt [the effects of the recession],” said Frank O’Connell, Hersheypark’s general manager.

But things are starting to turn around. In 2010, more people started traveling and visiting destinations such as Hersheypark. Hershey Entertainment & Resorts, which owns and operates the park, is hoping that trend holds true for 2011.

Hersheypark isn’t alone in seeing an upswing. Profits were up at many of the nation’s parks as families sought out fun close to home and began traveling again. Better weather helped, too, and some parks enjoyed record attendance.

Hersheypark doesn’t release attendance numbers, but O’Connell said that in 2010 roughly 8 percent more people traveled to the Derry Twp. park than in 2008. Those within the amusement industry are optimistic this year will be even better. Rising gas prices might even help parks by encouraging families to spend their vacation time near home, they say.

Amusement park operators generally believe that high gasoline prices aren’t a problem because most of their visitors come from a short distance. In the case of Hersheypark, most visitors come from within 250 miles of Harrisburg.

The main factor that drives attendance, aside from the broader economy, is the weather. “Clearly, we see noticeable differences when we see unfavorable forecasts,” O’Connell said. While some bad weather each year is expected, the problem is when a summer becomes unseasonable, either too hot, too cold, or the real killer: too wet.

With instant forecasts available on TV and smartphones, a family can change their travel plans hour by hour. Better weather during the summer and fall across much of the country was a big factor in the better attendance numbers last year.

“The past two years had been rainy and cold, dampening attendance in many parts of the country,” said Dennis Spiegel, a theme-park consultant who is president of Cincinnati-based International Theme Park Services Inc.

Amusement parks are trying new ways to get more repeat visitors. One of the nation’s oldest parks, Kennywood, near Pittsburgh, began selling season passes last year for the first time in its 112-year history.

“And parks are spending more on new rides and attractions this year than the previous season,” said Gary Slade, editor and publisher of Amusement Today, a trade publication. “Everybody is beyond positive,” Slade said. New roller coasters are opening at Busch Gardens in Tampa, Fla., and at Six Flags Over Georgia near Atlanta.

Hersheypark hasn’t built a major attraction in a couple of years. But rumors are swirling around a new project code-named “Attraction 2012” and the construction work that has begun in the Comet Hallow section of the park.

Most amusement park pundits are expecting the park to build a steel roller coaster. When asked, O’Connell laughed and at first denied the park was building anything. Then he relented and revealed a new project.

“We’re building a slushy stand,” he said.

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