Merlin is rocked by visitor ‘fear factor’

THE firm that owns Alton Towers saw £180m wiped off its value after warning that some customers were too scared to go on its rides following a rollercoaster accident last month.

Merlin Entertainments, which also owns Thorpe Park and Chessington World of Adventures, said the horror of the crash had meant visitors were staying away from its parks and this would hit profits by £47million.

Five people were seriously injured when two rollercoasters crashed on the Smiler ride at Alton Towers, which reaches a top speed of 85mph.

In the immediate aftermath, Merlin shut Alton Towers along with rollercoasters at other parks as it implemented new safety procedures. Out of respect for the victims, it also pulled advertising campaigns in the run-up to its busy summer season.

The theme park has now reopened but chief executive Nick Varney told shareholders that it could take up until 2017 before the business returns to normal. This caused shares in what is Europe’s biggest theme park operator to fall 8pc at one point during the day, before closing down 4.28pc at 405p.

Mr Varney said: ‘The accident was pretty devastating. And we have tried to do the right thing.’

While the cause of the accident is the subject of an investigation by the Health and Safety Executive, he said steps have been taken to guarantee a similar one never happens again.

He also said the accident had affected him personally, adding: ‘I do not deny feeling very depressed about what has happened.

‘I am determined nothing like this will ever happen again.

‘We have accepted responsibility and are deeply sorry.

‘We have been humbled by the grace and fortitude of those who were injured, and their families, and will continue to do whatever we can to support them.’

He said it was unclear whether how much of the drop in visitor numbers was due to the reduction in marketing and how much was because guests were too scared to go on the rides.

‘I can’t call the level of fear factor at the moment,’ he said.

‘Trading at the park and, to a lesser extent, the broader UK resort theme parks estate, has been adversely impacted.’