Shares of SeaWorld
Entertainment plunged 33% Wednesday after the company's earnings missed Wall
Street expectations. The Orlando, Fla.-based company also conceded for the
first time that attendance at its theme parks has been hurt by negative
publicity concerning accusations by animal-rights activists that SeaWorld
mistreats killer whales.
Latimes.com,
August 13, 2014
In the fall of 1971, Busch Gardens Tampa won the
prestigious Edward H. Bean Award in the mammal category for the first captive
breeding of the roan antelope. The Bean Award was presented by the American
Association of Zoological Parks and Aquariums (currently known as the
Association of Zoos and Aquariums – AZA) in recognition of a significant
captive propagation effort that clearly enhanced the conservation of the
species. The roan is a medium-sized, African antelope that stands about
five feet at the shoulder and weighs-in at 5 or 6 hundred pounds. It is light
brown all over with
the most distinctive markings being the black mask that
covers most of the face. Ears are long and pointed, and horns are short, stout,
and swept-back in a gentle backward arch. I was proud of the award, even though
I had only worked at the Gardens for less than a month. I loved hoofed stock
and this award, according to the criteria, was supposed to “demonstrate an
exceptional institutional commitment”. So imagine my disappointment when it was
announced the very next year that a new attraction was to swallow-up the roan
antelope breeding pen. The section of the park known as "Stanleyville" opened in
1973 and was home to the park's first water ride, the Stanley Falls Flume.
Animals, it appeared, would need to take a backseat to rides and other
attractions as Busch Gardens faced some stiff competition up the road in
Orlando where Walt Disney was opening his new Magic Kingdom.
Roan Antelope |
In 1971, zoos were modest affairs, little better
than the menageries of a century earlier. It is difficult to blame the planners
at Busch Gardens for failing to appreciate their animal assets. For the next
twenty years they chewed up animal areas and replaced them with rides, show
arenas, and themed villages, but in the 1990’s things began to turn around.
Zoos were thriving and building
innovative animal exhibits, like the Toledo
Zoo’s hippo exhibit with underwater viewing. In 1992, Busch Gardens finally reversed course
and opened the 3 acre Myombe Reserve as home to families of lowland gorillas
and chimpanzees. In July of 1997, they opened the Edge of Africa, a section of
the park where guests could walk through parts of the African veldt and get an
up-close view of the animals, including underwater viewing of the hippos. Not
to be outdone, Disney opened its newest theme park the very next year, spending
what some reports claimed was a staggering one billion dollars on Disney's
Animal Kingdom. The floodgates were open on zoo spending and zoos have not been
the same since.
Toledo Zoo Hippoquarium |
There are, it should be noted, more than one
category when it comes to defining zoos and aquariums, most of which serve a
local community. Large facilities, like SeaWorld, Disney’s Animal Kingdom, and
Busch Gardens, are tourist attractions. They spend lavishly on their animals,
but they also have annual revenues in the hundreds of millions of dollars. A
January 2014 CNN report, for example, reported that “SeaWorld expects an
estimated $1.46 billion in revenue for fiscal year 2013”. A single attraction, Antarctica: Empire of the Penguin, a
first-of-its-kind motion-based, trackless dark ride, opened in 2013 with a
reported price tag in excess of 40 million dollars.
Few zoo and aquarium projects can compare to that,
but they are still spending some pretty impressive amounts for new animal
exhibits. Detroit zoo announced its opening of a penguin exhibit in 2015 at
$29.5 million, which is double the amount spent by the Kansas City Zoo on its
Penguin Exhibit just two years earlier. In 2014 alone, as reported in the news
media and on websites, we saw the Hogle Zoo in Salt Lake City open an African
savanna at $16 million, the Indianapolis Zoo open its International Orangutan
Center at $26 million, and the Columbus Zoo open its forty three acre Heart of
Africa at $30 million.
Some attractions, like the Georgia Aquarium, are not
quite theme park but are larger than a standard zoo or aquarium. Billing itself
as “the world’s most magical aquarium”, the Georgia Aquarium officially opened
its doors to the public on November 23, 2005. It claimed to feature more
animals than any other aquarium in more than 10 million gallons of water, with
more than 60 exhibits. Attracting more than 2 million visitors per year, it is
an anchor for downtown Atlanta’s revitalization efforts and a benefit to both
the city and the state. But with such an ambitious vision and an initial
investment of over $200 million, the pressure on the Georgia Aquarium to
succeed must be enormous. In fact, all zoos and aquariums are under pressure to
generate revenue in every possible manner. Public food services are built into
new animal areas, often with an after-hours catering component. Souvenir shops
are strategically located near exits for those last minute purchases. Per
capita spending is monitored down to the last penny and one zoo is even
experimenting with something called “dynamic pricing” in which prices increase
at peak times. Zoos and aquariums may be focused on conservation and education,
but the bottom line is, well, the bottom line. Government agencies that once
supported zoos and aquariums are struggling financially and cutting back their
funding of “quality of life” programs. Zoos and aquariums need to run like
businesses or they won’t survive to do all of that good conservation work.
But Zoos and aquariums aren’t the only ones making
money from the business of animals. The 2013 documentary movie Blackfish made a relatively modest $2
million at the box office and
was seen by 25 million viewers, although director
Gabriela Cowperthwaite claims to have taken none of the profits. Both
the Humane Society of the United States (HSUS) and the American Society for the
Prevention of Cruelty to Animals (ASPCA) report revenue in excess of $100
million per year, which makes animal charities comparable to children’s
charities like the Boys and Girls Clubs and the Make A Wish Foundation at
around $200 million and around $70 million in annual contributions
respectively. Images of abused puppies and hungry children apparently elicit
similar positive responses.
Money is, as
always, both a blessing and a curse. Many zoos and aquariums are blessed with
generous supporters and plenty money for capital improvements—at least for
now—but they must continue to attract new visitors and generate more and more
revenue to support their operations. The cost of doing business is increasing
and, as new animal exhibits are added, it will only go up. Whether or not
revenue can keep up with expenses remains to be seen but, as the Ringling
Brothers Circus can attest, this can be a slippery slope.