AP Interview: Amusement park CEO expects good summer

Amusement parks and water parks aren't likely to see a drop off in visitors this summer despite surging gas prices and the struggling economy, the head of North America's third-largest park operator said Wednesday.

Families and teens still will come to ride roller coasters and gobble up funnel cakes and corn dogs, but they'll probably spend less on games and souvenirs, said Richard Kinzel, chief executive of Cedar Fair Entertainment Co.

"It's always been sort of recession resistant," Kinzel said. "That's what we're hoping for and that's what usually has happened in the past."

Cedar Fair operates 11 U.S. amusement parks, including Carowinds in Charlotte, N.C., and six outdoor water parks, as well as Canada's Wonderland amusement park near Toronto.

Nearly two years ago, it paid $1.24 billion to buy five parks from Paramount Parks Inc. The deal made Cedar Fair the third-largest in terms of attendance.

Most of its parks now are operating and its flagship, Cedar Point, opens Saturday.

New this year at its parks are 18 live shows, three thrill rides and five roller coasters, including Behemoth at Canada's Wonderland in Toronto, which will be Canada's tallest, fastest and longest roller coaster.

Kinzel, who was set to retire before the deal with Paramount, is entering his 37th year in the amusement industry and has three more years left on his contract.

He got his start in 1972 at Cedar Point supervising food stands along the midway. Three years later, he became the park's director of operations.

He's been through tough economic times before and is confident the business will be fine.

"People are always looking for an escape," he said. "It's always been a great form of entertainment. Cedar Point has been going since 1870."

Gas prices will keep families closer to home, which should benefit Cedar Fair's regional parks that are spread throughout the country, he said.

"It really is a cheaper alternative than going to Florida or California or the lake for a week," Kinzel said.

He told The Associated Press that there are some encouraging signs already. Season pass and group sales are up over last year, although hotel reservations are down.

Some families may be planning shorter stays this year because of the economy, Kinzel said.

The Walt Disney Co. said Tuesday that attendance at its parks in California and Florida were up 5 percent in the first three months of this year. It credited a weak U.S. dollar with keeping Americans closer to home and attracting tourists from abroad.

Visitors to Cedar Fair parks will find higher food prices this year. The company increased prices by a nickel or so after its food costs came in 4 percent higher over the winter.

"Unfortunately, we have to pass it along," Kinzel said.

Online promotions have allowed company executives to make quicker pricing changes on tickets if they see a drop in attendance or guest spending inside the parks, Kinzel said.

"You can throw a discount out there very quickly if you need it to energize attendance," he said.

The company expects to have $100 million in online sales this year, he said. "It was zero not too long ago," Kinzel said.

For now, though, he's just as concerned with how weather will affect the upcoming season and making sure the seasonal employees greet guests with a smile. That's because visitors are looking to have fun and forget about how much they're spending, he said.

"They expect value for their dollar because it doesn't go as far as it used to," Kinzel said.

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