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Will the lockdown increase or reduce investment?

A

Altonadvocate1

TS Member
I can't decide on this one.

On the one hand, I can see Merlin, reducing Capex for years given the huge drop in revenues to reduce costs, but on the on the other hand, it could be argued that they may go for a huge early investment (SW9?). to entice people back.

What will Merlin do ?

and, what would you do ?

Will post my answer after consideration.
 
Altonadvocate1 said:
I can't decide on this one.

On the one hand, I can see Merlin, reducing Capex for years given the huge drop in revenues to reduce costs, but on the on the other hand, it could be argued that they may go for a huge early investment (SW9?). to entice people back.

What will Merlin do ?

and, what would you do ?

Will post my answer after consideration.
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It's hard to say what merlin will so, public merlin would have gone the minimal capex route, but private merlin? It's not been long enough to be able to tell.

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If they can cut the cost they will. No doubt they are looking into it now all the things they can cut the budget for. Next season could be an interesting one depending on what they do.
 
I think that they will definitely invest less, but I don't think investment will necessarily be non-existent. They said that they're cutting 40% of estate CAPEX, so there is still 60% of the original amount there next year (although I'm not 100% sure what this amount is).

However, if what most operators are doing is anything to go by, then it should only really defer projects by a year or two. For example, if SW9 was due for 2022 originally as heavily rumoured, it's now more likely to be due for 2023/2024.

I could see investment recovering to its original levels by 2025 at the very latest, probably more like 2022-2023. I'd imagine the contingency measures being taken are only for the short to medium term while the parks ride out the lockdown period.
 
I think most people could agree that Chessington new rainforest area probably cost next to nothing. The rides were from Weymouth so they cost nothing apart from some Poundland theming to make it look passable.
 
Mr Pearse said:
I think most people could agree that Chessington new rainforest area probably cost next to nothing. The rides were from Weymouth so they cost nothing apart from some Poundland theming to make it look passable.
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By next to nothing, you're probably talking £500k > £750k, if not more.
 
The jeep ride is new too (well, most of the track is reused from Toadies but the ride system and cars are from Garmendale). Probably not very expensive in the grand scheme of things but unlike the log flume it wasn't just lying around somewhere.
 
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