Summer 2026 Brings Growth for India's Amusement Industry, but Rising Costs Put Pressure on Margins

VMPL
New Delhi [India], September 2: Summer has always been one of the most important seasons for India's amusement and entertainment industry. Families step out for a day of fun, children look for new experiences and amusement parks, water parks and indoor entertainment centres see some of their busiest months of the year. This summer, the industry saw encouraging signs of demand, but operators also had to deal with a sharp rise in operating costs.
According to the Summer Season Performance Survey 2026 conducted by the Research & Analysis Committee of the Indian Association of Amusement Parks and Industries (IAAPI), 57% of operator responses reported an increase in revenue compared with last year. At the same time, 72% reported an increase in expenses, showing that revenue growth is being accompanied by significant cost pressure. The survey received 91 responses from operators, manufacturers, suppliers and consultants across the industry.
The numbers paint a picture of an industry that is growing, but also having to work harder to make that growth sustainable. Rising costs of operations and intense competition are making it increasingly important for businesses to balance affordability for visitors with the need to maintain and improve their facilities.
Ankur Maheshwary, Chairman, IAAPI, said, "The summer season has once again shown us that people continue to enjoy spending time with family and friends at amusement and entertainment destinations. That demand is a positive sign for the industry. However, the increase in operating costs is something businesses cannot ignore. We need to continue investing in better experiences while also finding smarter and more efficient ways of running our facilities."
The performance was not uniform across the country. The South zone recorded the strongest revenue performance, with 55% of responses reporting an increase. However, the same region also experienced considerable cost pressure, with 19 of 22 responses reporting higher expenses. The West zone witnessed a more mixed revenue picture, with 9 of 16 responses reporting growth and 5 reporting a decline.
For operators, the challenges go beyond costs. Competition emerged as a recurring concern across regions, while some respondents also pointed to ageing infrastructure and the difficulty of attracting new-age customers. These trends highlight the need for amusement businesses to keep refreshing their attractions, adopting technology and understanding how visitor expectations are changing.
Interestingly, the supply side remains upbeat. 65% of manufacturers, suppliers and consultants described investment appetite for new equipment and attractions as strong or very strong, while 74% said demand for their products and services had increased compared with the previous year.
The trends from the summer season conveys that the market is moving in the right direction, but the industry cannot take growth for granted. Visitors are looking for newer and better experiences, and businesses have to keep investing to meet those expectations. At the same time, controlling costs and improving operational efficiency will be equally important."
Going into the next season, IAAPI believes the focus will remain on innovation, modernization and creating memorable visitor experiences while managing rising costs. The association will continue to track industry trends and engage with stakeholders to support the long-term growth and development of India's amusement industry.
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