DXB Entertainments, the owner and operator of Dubai Parks and Resorts, saw its full year net loss more than double in 2017.
The theme park operator’s net loss in 2017 reached Dhs1.11bn ($302m) compared with a Dhs485m ($132m) loss a year earlier. DXB Entertainments revealed the preliminary figures in a statement to the Dubai Financial Market.
DXB opened the Dubai Parks and Resorts complex in 2016 on a phased basis. Visitors gained access to the final rides and attractions in the fourth quarter of 2017, generating record attendance with 796,000 visits. Overall, it received 2.3 million visitors last year.
Last month, DXB Entertainments announced the completion of an operational restructure with its theme park division combining with its retail and hospitality division. The merging of the divisions came only six months after they were created. In August last year, the company announced it was splitting its business into three units, theme parks, retail and hospitality, and marketing.
The August reorganisation came in response to significant losses in the first half of 2017. In September, the company secured a Dhs245m ($66.7m) loan from its majority shareholder, Meraas, to cover operational expenses and debt repayments.
IMG also wants to upsize its existing loan facility. While the company denies this is down to low visitor numbers, Reuters reported that bankers believe it is at least partially linked to low attendance.
Dubai Parks and Resorts is a 2.3 million sqm family entertainment destination comprising three theme parks – Motiongate Dubai, Bollywood Parks Dubai and Legoland Dubai – as well as the region’s first Legoland Water Park.
The parks are linked by Riverland Dubai, a dining, entertainment and retail district featuring the Lapita Hotel. Six Flags Dubai will be the destination’s fourth theme park opening in late 2019.