High cost of business Affordability does not only concern the consumers. Heavy operating cost base of the UK businesses is driven by VAT, rents, business rates, labour on- costs and utility bills. The temporary VAT relief scheme recognises these pressures. Although it is too early to assess its overall impact, most major attractions and groups (e.g. Merlin, Gulliver’s Theme Park Resorts, Paulton’s Park, Kew Gardens and Warner Bros. Studio Tour) have passed some or all of the savings to customers. As entertainment becomes less affordable, some market correction is expected. This need not mean lower headline prices: hidden discounting, promotions and packaging can achieve the same effect. The VAT scheme has provided an opportunity to do this without directly hurting operators. The key question is whether it will be extended, particularly into off-peak months when residents are more price-sensitive or potentially become a longer-term measure that could further support new market entrants.
The rise of temporary and short-term experiential attractions and competitive socialising across the UK, has offered a compelling solution: these concepts are value-driven, require less demand and repeatability (although this varies), occupy smaller footprints with lower rents and rates, and can be scaled once proven, creating efficiencies. However, as the market becomes increasingly crowded, the changing landscape warrants a closer look at competitive socialising.
Secondly, these are relative numbers. When looking in absolute terms (chart below), the UK was already Europe’s most expensive theme park market in 2016. A weaker pound and the VAT scheme have since moved the UK towards a more reasonable position, a step in the right direction but affordability remains a concern. UK GDP per capita ranks towards the lower end of the markets reviewed, reflecting a wider economic imbalance: the combination of a high cost of living and moderate population incomes puts the UK among Western Europe’s least affordable countries for its residents. Entertainment is no exception.
The combination of a high cost of living and moderate population incomes puts the UK among Western Europe’s least affordable countries for its residents.
As entertainment becomes less affordable, some market correction is expected.
Average lead price at major theme parks vs GDP per capita, in EUR
Price 2026/rank
Price 2016
2025 GDP per cap/rank
75
1st 83,771
1st
2nd 3rd
70
2nd 68,365
4th
UK
65
3rd 65,377
60
4th 55,631
5th
55
7th 6th
5th 53,517
50
Denmark France Norway Germany Sweden France excl Disney Spain
8th
6th 51,024
45
7th 43,326
40
8th 33,905
35
Netherlands
30
Source: Individual attractions, Eurostat & LDP Database
Kew Gardens
10 THE EXPERIENCE ECONOMIST: EUROPE EDITION 2026 | © LDP
THE EXPERIENCE ECONOMIST: EUROPE EDITION 2026 | © LDP 11
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