Swimming in deep waters
PUBLIC aquariums — like zoos, museums and other historical sites — have long been among the tourist attractions at a destination.
There is nothing quite like seeing fishes of every colour and size swimming around in giant glass tanks upclose.
Researches note that aquariums are a major contributor to the local economy, generating income for hotels, eateries, nearby attractions and other local businesses. They draw in hundreds of thousands of visitors each year and some of the best aquariums in the world attract millions of visitors a year.
While these giant tanks may be impressive, maintaining experience-based businesses such as aquariums can be a challenge as foot traffic tends to taper off after an initial rush of visitors. Even the best of them will grapple with declining visitors at some point.
Such was the case with Georgia Aquarium, located in Atlanta, Georgia, US.
When the aquarium opened in November 2005, it was the biggest aquarium in the world with some 120,000 animals in more than 8 million gallons of water.
According to a Harvard Business Review report, the aquarium saw more than 3.5 million visitors in its first year. Demand was apparently so great that tickets were available by reservation only and waiting time stretched six months or more.
However, attendance dropped to about 2 million in 2008 and revenue fell accordingly.
A marketing strategy overhaul in 2013, which included redistributing advertising and promotion budgets and applying new pricing strategies, saw attendance at Georgia Aquarium climbed by 10% and revenue increasing by 12%.
Aquariums certainly play an important role in a community and contribute positively to the economy and the general awareness on marine life conservation.
However, there is a need to balance that role with being sustainable as a business model.
The cost of constructing aquariums is high — Georgia Aquarium had the good fortune of starting off with a US$250mil gift from Marcus Foundation and 9.5 acres of land from Coca-cola — and the cost of their upkeep is fairly significant.
A 2008 report by US-based consulting firm ConsultEcon Inc noted that sources of revenue for an aquarium have shifted over the years. Admission fees used to make up about 68% of an aquarium’s revenue in the 1970s but its revenue contribution was reduced to 43% in 2007.
In comparison, retail, food and events grew from 13% to 27% during that period. Revenue from grants have also increased.
There are many factors that make or break an aquarium and getting all the right elements can prove to be a challenge but not ultimately impossible.
Reports say there is significant growth potential for the aquarium industry worldwide as global population continues to grow and many populated cities still do not have aquariums.