Building Blocks

REVIEW SUMMARY
Issue. Legoland opening
Industry. Theme Park
Key. New tourist attraction will provide jobs and economic boost for Polk County.

What can you build with 50 million Legos? A theme park in Central Florida, and a bustling new economy for Polk County businesses.

United Kingdom-based Merlin Entertainments purchased the historic Cypress Gardens tourist attraction in 2010 after multiple companies tried to revive what many consider to be Florida's first theme park.

After the purchase, Merlin quickly unveiled plans to open Legoland Florida, which will incorporate some 50 million iconic Lego bricks in the park's rides and attractions. It will be the second Legoland in the U.S., and the only one on the East Coast.

Niche Marketing

The Orlando theme park market is the world's largest, and Merlin faces uphill competition to attract visitors, especially considering Legoland is located in Winter Haven, some 45 minutes southwest of Walt Disney World.

Legoland General Manager Adrian Jones understands the challenges, but points out that Legoland has a dedicated fan base across the globe.

“We've been bombarded with requests for a number of years to bring a Legoland to the East Coast of the U.S.,” Jones says.

Furthermore, Legoland Florida's location between to major markets — it's less than an hour from both Tampa and Orlando — is similar to the successful Legoland California in Carlsbad, Calif., which is located about an hour south of Disneyland in Anaheim, Calif., and about 40 minutes north of San Diego.

Jones notes that Legoland has a very targeted niche: families with kids from age 2 years olds to 12 years old.

“We won't compete with Busch Gardens and Universal when it comes to thrill rides,” Jones says. “We don't want to be a thrill park.”

In place of thrills, Legoland will heavily market the interactive experience between parents and kids. For example, at the Fun Town Fire Academy Ride, families will race other families in fire trucks that are powered by pumping levers up and down. Once on the scene, kids spray water on a “fire” to put it out.

“Disney and Universal are passive parks in the sense that there are lots of rides, but not a lot of required interaction. At Legoland, the rides and attractions are designed to have parents interacting to complete some sort of task,” Jones says.

Legoland's marketing plan initially will focus on attracting families from Orlando, Tampa and other Florida cities within about a two-hour drive of Winter Haven.

Next, Legoland Florida will target visitors within a day's drive of the park, as well as overnight visitors. Finally, Jones says the park will leverage Merlin's European presence to attract international visitors.

Deep Pockets

Legoland will sit on the site of Cypress Gardens, which Dick Pope Sr. and his wife, Julie, opened in 1936 as a botanical garden. Water ski shows and other amenities were added over the years, and by the 1960s Cypress Gardens was one of the most visited attractions in Florida.

The Pope family sold the park in 1985, and a series of owners have tried unsuccessfully to regain the park's glory days. It closed for good in 2009.

Jones firmly believes Merlin will be successful in transforming where others have failed. “We're not trying to be all things to all people,” Jones says.

More importantly, Merlin has two assets previous Cypress Garden operators didn't, says Jane Patton, president of the Haines City/Northeast Polk County Chamber of Commerce: “They have deep pockets and a proven business plan.”

Merlin is showcasing those deep pockets by sinking $100 million into a total renovation of the 150-acre property, including upgrading the stormwater and sewage infrastructure.

Merlin projects Legoland Florida will attract 1.6 million to 2 million visits each year. Opening day single-day ticket prices are $75 for adults and $65 for kids age 3 to 12. If attendance were at the low end of Merlin's projections, Legoland Florida would have gross ticket sales of more than $100 million annually.

As for the company's business plan, Merlin opened the first Legoland in 1968 in Dillund, Denmark, and has been perfecting the Legoland concept ever since. Attendance at Merlin's Legoland properties is a fraction of theme park giants Disney and Universal, but it continues to grow. Even the Great Recession failed to slow attendance at Legoland California, which has seen gains for seven consecutive years.

In addition, Merlin has a partner with one of the strongest toy brands in the world. Lego's revenues in 2010 were $3 billion, a 37% increase over 2009 according to the company's annual report. Profits jumped 69% in 2010 to $914.5 million, and Lego holds a 5.9% share of global spending on children's toys, an increase from 2009.

“If any brand can be successful (at Cypress Gardens), it's Legoland,” Jones says.

Reviving Polk

Polk County officials have high hopes that Legoland will build up the county's once-thriving tourist industry. Legoland Florida will hire more than 1,000 people. But it's the jobs created by local businesses that has Mark Jackson excited.

“In addition to the jobs Legoland creates, we expect about 6,000 additional jobs will be created in the community,” says Jackson, the director of Polk County's tourism and sports marketing efforts.

In a county with an unemployment rate of 12.7%, 7,000 new jobs will go a long way to putting Polk residents back to work. Jackson says Legoland will add $459 million to the Polk County economy.

Businesses along U.S. Highway 27 may have the best opportunity because nearly 80% of Legoland visitors will use the highway to get to park, says Jane Patton, chamber president.

There are plenty of entrepreneurial opportunities as well, Patton notes, especially for those who can play on Florida's natural assets.

“Visitors who come to Florida want to pick an orange and see an alligator,” Patton says. “People who offer airboat rides or eco-tours can attract some of the same people going to Legoland.”

Younger market

Jones agrees that Legoland can be a cataylst for “restaurants, hotels and other tourist related businesses in Polk County.” But he advises companies must gear their efforts toward attracting Legoland's target audience — families with young to pre-teen kids.

Existing businesses face a paradigm shift, says Jackson, because Cypress Gardens' target audience was more than 50 years old.

To that end, Patton and her chamber colleagues are hosting a series of seminars to prepare Polk businesses. For example, Patton advises retail shops and restaurants to greet children at the door.

“If the children feel welcome, then the whole family will feel welcome,” Patton says. Cleanliness is also a “huge factor,” she adds.

And Jackson notes that businesses kid-themed restaurants and activities like mini golf are in short supply. “We have to create a business infrastructure that complements Legoland,” Jackson says.