logo
Smaller Amusement Parks Hope for a Strong Summer Under the Shadow of Tariffs

Smaller Amusement Parks Hope for a Strong Summer Under the Shadow of Tariffs

Al Arabiya7 days ago

The trade disputes involving global economic powerhouses such as the US and China are being felt even in distinctly local places like regional amusement parks. Families who balk at the cost of a summer vacation at big amusement parks like Disney World favor trips to regional parks, which typically are within driving distance so expensive flights aren't necessary. But if tariffs lead to economic uncertainty, they may just stay home. For park owners, tariffs could mean extra costs that their customers might not think about.
Parts of the rides are made of imported steel that's currently subject to tariffs. Those prizes and toys people win after they shoot basketballs into a hoop? They usually come from China, which has been subject to varying tariffs. So far this year, however, there's been no letdown. 'We've had good crowds and everyone seems excited to be here,' said Brian Hartley, vice president of Playland's Castaway Cove in Ocean City, New Jersey, which boasts 30 rides, miniature golf, go-karts, and other beachfront attractions. 'As long as the weather is good, they're ready to come down.'
That's true for park-goer Chris Del Borrello at Castaway Cove on a bustling June Friday evening with a group of 10 family members, including his four children. 'We come here every year because it's so fun and we build memories every single summer,' he said. Tariffs loom over the summer tourism industry just as leisure travel is expected to finally get back to pre-pandemic levels. The US Travel Association expects Americans to take 1.96 billion trips this year, up two percent from 1.92 billion last year. Travel spending is also expected to increase two percent year over year.
As park operators prepared for the 2025 summer last year, President Donald Trump unrolled on-again, off-again tariffs against US trade partners that made planning difficult. For instance, proposed tariffs against China started at ten percent in February, rose to twenty percent in March, ballooned to 145 percent in April, and were reduced to thirty percent in May. On Wednesday, the Trump administration put the number at fifty-five percent.
Hartley said he ordered items like stuffed animals for games from China early to beat the tariffs–and benefited from the pause announced in May. 'We loaded up; we're tripping over stuff at this point,' he said. 'We tried to purchase as much stuff as we could to be ready for the season because that little bit makes a big difference in the bottom line at the end of the day,' he said.
In particular, the park added two new rides this year, but parts were delivered back in the fall. Not all parks were as fortunate. At Adventureland in Farmingdale, New York, the steel structure for a new ride, Wave Twister, and some China-made game prizes like plush toys and basketballs were affected by tariff costs, said manager Jeanine Gentile. 'We ordered them months ago before the tariffs were in place, but they typically arrive for delivery at this time of the year, and so obviously the tariffs were in before we received the product,' she said. 'We did have to pay additional for those tariffs in order to get the product.'
So far, the park is absorbing the cost–they made the decision not to raise ticket prices this year. But that could change next year. 'We've just sort of felt that if we can do this (not raise prices) for Long Island and for our guests, let's do it where we can afford it, at least for this season,' said Gentile.
Aside from tariffs, economic uncertainty is the biggest challenge for amusement parks this season. At Dollywood in Pigeon Forge, Tennessee, which is co-owned by country legend Dolly Parton and Herschend Family Entertainment, Director of Communications Pete Owens said they decided to open a week later in March due to concerns about the economy. But so far, attendance at the park nestled in the Great Smoky Mountains is up four percent from last year. Attendees are spending but looking for deals. A promotion giving discount tickets to public employees has proved popular. And Owens is seeing customers purchase tickets for their family closer to their actual visit instead of several days or weeks in advance. Some are even waiting until they're in the Great Smoky Mountains to decide to buy a ticket.
'I think they're all still looking very closely to see what value pricing there is or what opportunities there are,' he said. The same holds true at Silver Dollar City near Branson, Missouri, an 1880s Western-themed park which draws its visitors from what president Brad Thomas calls 'America's heartland,' an oval in the middle of the country including Minneapolis, Denver, Memphis, and Houston, Texas.
'What those families tend to say as they visit us is that they want their families just to escape, even though there's a lot of concerns in every family's life; they're all dealing with time pressure and money pressure and inflation pressure and all kinds of other things,' said Thomas. He said this year families coming to the park are sticking to a plan, moneywise. 'They have carved the money that they'll spend in their day with us or their days with us,' he said. 'They've planned that into their budget.'
Back at Castaway Cove, Hartley said that while the season is going well, he worries about the mood of the consumer as economic uncertainty persists. That could affect trip planning later in the summer. 'People that really haven't already booked a vacation … it may affect do they come down here for a weekend? Do they not? Do they come for two days instead of four or five days?' he said. 'I think people don't know what the future is going to hold.'

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Tesla Quietly Rolls Out First Wave of Fully Autonomous Robotaxis in Austin
Tesla Quietly Rolls Out First Wave of Fully Autonomous Robotaxis in Austin

ArabGT

time13 hours ago

  • ArabGT

Tesla Quietly Rolls Out First Wave of Fully Autonomous Robotaxis in Austin

In a landmark step for autonomous mobility, Tesla has begun testing its first fleet of self-driving Robotaxis on public streets in Austin, Texas. Though not officially announced, eyewitness footage from locals has revealed Model Y vehicles navigating the city with no driver behind the wheel. Autonomous Teslas Begin Testing in Controlled Zones Currently, Tesla's Robotaxis operate within tightly defined areas of Austin's downtown, during specific hours—between 6:00 a.m. and midnight. The test vehicles, reportedly numbering between 10 and 12, are accompanied by onboard safety monitors who can take control if necessary. For now, these vehicles are prohibited from driving in challenging weather, such as heavy rain or fog, to maintain testing accuracy in the early rollout phase. Growing Regulatory Scrutiny Amid Launch Tesla's bold move hasn't gone unnoticed by lawmakers. Several Texas representatives have formally asked the company to delay expanding its autonomous vehicle program until new statewide regulations—set to take effect in September 2025—are in place. These rules are expected to bring tighter oversight to driverless vehicle operations. Meanwhile, the National Highway Traffic Safety Administration (NHTSA) is continuing its investigation into Tesla's Full Self-Driving (FSD) technology, especially its behavior in emergencies and minor collisions. Why Austin? Tesla's decision to begin in Austin is no coincidence. The city is known for its progressive stance on emerging tech and offers one of the most permissive legal environments for testing autonomous vehicles. While other players like Waymo and Cruise have operated under strict limits, Tesla aims to leap ahead with a broader and more ambitious deployment—once the current evaluation phase concludes. Musk's Vision in Motion This trial brings Elon Musk's vision closer to reality: transforming Tesla cars into fully autonomous vehicles that can function as self-driving ride-hailing services, earning income for their owners. If the Austin pilot proves successful, it could serve as a springboard for wider rollout across the U.S. and potentially worldwide. Still, Tesla faces a long road ahead. To gain public trust and regulatory approval, the company must not only showcase innovation but also demonstrate that its autonomous vehicles are as safe and dependable as any human-operated car.

Top Automotive Industry Changes and New Model Launches This Week
Top Automotive Industry Changes and New Model Launches This Week

ArabGT

time13 hours ago

  • ArabGT

Top Automotive Industry Changes and New Model Launches This Week

With the pace of change accelerating in the global automotive industry and energy markets, last week was packed with key developments reflecting major shifts in the strategies of leading manufacturers. From updates to iconic models that signal the future of mobility, to the geopolitical tensions threatening oil price stability, the week offered a clear picture of the growing intersection between economic and technological forces. In this report, we highlight five of the most important stories from the past week in the automotive world—each shedding light on the road ahead for the global transport landscape. Chevrolet Unveils the Corvette ZR1X Aiming to Rival Supercars Chevrolet has officially unveiled the 2026 Corvette ZR1X, the most powerful Corvette ever built. Equipped with a hybrid V8 powertrain and all-wheel drive, it delivers a combined output of 1,250 horsepower. The model targets rivals such as the Ferrari F80 and McLaren W1, featuring a twin-turbocharged V8 paired with a front-mounted electric motor. Acceleration from 0 to 100 km/h takes under two seconds, with an estimated starting price of around $200,000. Ferrari Delays Electric Car Launch Once Again According to a Reuters report citing internal sources, Ferrari has postponed the launch of its second electric vehicle until at least 2028. The delay is attributed to weak demand for high-performance EVs in the luxury segment. One insider noted that 'demand is close to zero,' prompting Ferrari to rethink its EV strategy with a longer-term outlook. Mercedes Flips the Script: Gasoline Engines Are Here to Stay Mercedes has confirmed it will continue developing and offering gasoline engines, including high-performance V8 and V12 variants. AMG plans to introduce a new, advanced V8 mild-hybrid engine on its platform, compliant with future Euro 7 regulations. This marks a strategic shift after previously aiming to phase out combustion engines by 2030—signaling that gasoline-powered options will remain available for the foreseeable future. Nissan Unveils New Generation Leaf as an Electric Crossover Nissan has revealed the third-generation Leaf, transitioning from a hatchback to a sleek and refined electric crossover. The new model features a 75 kWh battery offering up to 303 miles (approximately 488 km) of range and supports 150 kW fast charging. It boasts an aerodynamic design, electric cooling system, integrated Google interfaces, and a modernized interior. The launch is expected in fall 2025 in the U.S., with deliveries starting in early 2026. BMI Releases Oil Price Forecast Amid Regional Conflict BMI Research has published its outlook on global oil prices in light of ongoing regional conflicts. Depending on the severity of escalation, Brent crude could range between $60 and $150 per barrel. In a worst-case scenario such as the closure of the Strait of Hormuz, prices may exceed $150. Conversely, diplomatic de-escalation could bring prices down to the $60–65 range.

Would you hail a 'robotaxi'? Musk bets cabs will give Tesla a lift after boycotts and sales plunge
Would you hail a 'robotaxi'? Musk bets cabs will give Tesla a lift after boycotts and sales plunge

Al Arabiya

time20 hours ago

  • Al Arabiya

Would you hail a 'robotaxi'? Musk bets cabs will give Tesla a lift after boycotts and sales plunge

Elon Musk promised in 2019 that driverless Tesla robotaxis would be on the road the following year, but it didn't happen. A year later, he promised to deliver them the next year, but that didn't happen either. Despite the empty pledges, the promises kept coming. Last year, in January, Musk said, 'Next year for sure we'll have over a million robotaxis.' Would you settle for 10 or 12? Musk appears to be on the verge of making his robotaxi vision a reality with a test run of a small squad of self-driving cabs in Austin, Texas, starting Sunday. Reaching a million may take a year or more, however, although the billionaire should be able to expand the service this year if the Austin demo is a success. The stakes couldn't be higher, nor the challenges. While Musk was making those 'next year' promises, rival Waymo was busy deploying driverless taxis in Los Angeles, San Diego, Austin, and other cities by using a different technology that allowed it to get to market faster. It just completed its 10 millionth paid ride. Boycotts related to Musk's politics have tanked Tesla's sales. Rival electric vehicle makers with newly competitive models have stolen market share. And investors are on edge after a $150 billion stock wipeout when Musk picked a social media fight with a US president overseeing federal car regulators who could make the robotaxi rollout much more difficult. The stock has recovered somewhat after Musk said he regretted some of his remarks. Tesla shareholders have stood by Musk over the years because he's defied the odds by building a successful standalone electric vehicle company–self-driving car promises aside–and making them a lot of money in the process. A decade ago, Tesla shares traded for around $18. The shares closed Friday at $322. Musk says the Austin test will begin modestly enough with just 10 or 12 vehicles picking up passengers in a limited area. But then it will quickly ramp up and spread to other cities, eventually reaching hundreds of thousands, if not a million vehicles next year. Some Musk watchers on Wall Street are skeptical. 'How quickly can he expand the fleet?' asks Garrett Nelson, an analyst at CFRA. 'We're talking maybe a dozen vehicles initially. It's very small.' Morningstar's Seth Goldstein says Musk is being classic Musk: promising too much too quickly. 'When anyone in Austin can download the app and use a robotaxi, that will be a success, but I don't think that will happen until 2028,' he says. 'Testing is going to take a while.' Musk's tendency to push up the stock high with a bit of hyperbole is well known among investors. In 2018, he told Tesla stockholders he had 'funding secured' to buy all their shares at a massive premium and take the company private. But he not only lacked a written commitment from financiers, according to federal stock regulators who fined him, he hadn't discussed the loan amount or other details with them. More recently, Musk told CNBC in May that Tesla was experiencing a major rebound in demand. A week later, an auto trade group in Europe announced sales had plunged by half. Musk has come under fire for allegedly exaggerating the ability of the system used for its cars to drive themselves, starting with the name. 'Full Self-Driving' is a misnomer. The system still requires drivers to keep their eyes on the road because they may need to intervene and take control at any moment. Federal highway safety regulators opened an investigation into FSD last year after several accidents, and the Department of Justice has conducted its own probe, though the status of that is not known. Tesla has also faced lawsuits over the feature, some resulting in settlements, others dismissed. In one case, a judge ruled against the plaintiffs, but only because they hadn't proved Musk knowingly made false statements. Musk says the robotaxis will be running on an improved version of Full Self-Driving and the cabs will be safe. He also says the service will be able to expand rapidly around the country. His secret weapon: millions of Tesla owners now on the roads. He says an over-the-air software update will soon allow them to turn their cars into driverless cabs and start a side business while stuck at the office for eight hours or on vacation for a week. 'Instead of having your car sit in the parking lot, your car could be earning money,' Musk said earlier this year, calling it an 'Airbnb model for cars.' 'You will be able to add or subtract your car to the fleet.' Musk says Tesla also can move fast to deploy taxis now because of his decision to rely only on cameras for the cars to navigate, unlike Waymo, which has gone a more expensive route by supplementing its cameras with lasers and radar. 'Tesla will have, I don't know,' Musk mused in a conference call with investors, 'ninety-nine percent market share or something ridiculous.' Given Waymo's head start and potential competition from Amazon and others, dominating the driverless market to that extent could be a reach. But Dan Ives, a Wedbush Securities analyst and big Musk fan, says this time Musk may actually pull it off because of Tesla's ability to scale up quickly. And even skeptics like Morningstar's Goldstein acknowledge that Musk occasionally does get things right, and spectacularly so. He upended the car industry by getting people to buy expensive electric vehicles, brought his Starlink satellite internet service to rural areas, and more recently performed a gee-whiz trick of landing an unmanned SpaceX rocket on a platform back on Earth. 'Maybe his timelines aren't realistic,' Goldstein says, 'but he can develop futuristic technology products.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store