The UAE has made great strides in many areas of trade and commerce in the last several decades of its founding. There is one sector though that seemed to have emerged much more prominently in the country: the entertainment sector symbolized by Family Entertainment Center (FEC).
FECs are a kind of small amusement park or entertainment zones that mainly serves local communities in small and large cities. They are designed to keep the entire family engaged, usually at a mostly less per-person price than a regular amusement park.
It provides different options like arcades, gaming consoles, video games, soft play areas, indoor playground systems, redemption machines, children’s rides, skill-based machine games, and games based on virtual and augmented reality. FECs also offer private celebrations like birthday parties and corporate events and, they are attractively located in areas like malls, where consumers generally visit.
A few years ago, the entertainment scene was much different. However, a fundamental change has occurred, and the country is currently experiencing a tremendous surge in the Family entertainment centers (FECs).
Business investors in Dubai understand the many benefits associated with leisure for kids, thus ensuring there are as many modern children entertainment zones as possible to cater to the needs of the young ones in the society.
As observed, children in Dubai enjoy various FECs places of interest in the region, with malls forming the most significant part of the zones offering these services.
A dynamic sector
The Family Entertainment Centers (FECs) account for 96% of regional leisure and amusement businesses. Careful estimations by the Middle East and North Africa Attraction and Leisure Council (MENALAC) put the number of Leisure centers in the UAE alone at around 400, employing more than 15,000 people.
“The Leisure and Entertainment sector in the UAE is one of the world’s most dynamic markets and continues to deliver new innovations almost every week,” says Silvio Liedtke, CEO of Landmark Leisure, a well-known FEC in the UAE, with a portfolio worth over AED 500 million.
Landmark Leisure began in 1999 as Fun City and now has over 85 locations in six GCC countries and India. They own and run six distinct brands, including Fun City, Fun Block, Fun Works, Tridom, Jumble, and Fun Ville.
Impact of technology
Entertainment and gaming for young children are becoming increasingly popular, most likely due to the numerous benefits linked with the trend.
Liedtke explained to TRENDS the impact that technology and new innovations have had on the sector.
“While technology has impacted many industries, including ours, the recent developments in augmented and virtual reality products and experiences make the current period in our sector very intriguing indeed.”
For example, Landmark Leisure has recently launched their latest attraction, “Balls and Walls,” an augmented physical experience within digital space where both parents and children can experience this attraction together in a stimulating, fun, and immersive way.
“Making tech viable as a sustainable business model is as important as considering innovative ways to manage your investment levels to generate profits,” Liedtke added.
Aside from entertainment, FECs offer excellent and unique children’s educational and interactional activities to participants in a more engaging manner.
“Cognitive play and competitive socializing in combination with attractive spaces and F&B are all the rage right now, and the rate at which new players enter the market is remarkable,” he added. “This is where a substantial part of the future of entertainment rests, especially considering that shopping centers are increasingly abandoning traditional offers in favor of lifestyle experiences, and our business plays a vital role in this.”
Challenges facing the sector
In terms of the challenges this sector faces, Liedtke stated that the previous two years have been challenging due to regulations and a general loss of faith in people gatherings. However, the industry is reviving with the country’s opening and a high vaccination rate.
“We are recovering toward adding value to our shareholders again,” he noted, despite sales being slightly lower than pre-COVID levels, notably in the GCC. We are working hard to guarantee that we remain relevant to our clients, that we are completely safe and sanitary, and that we provide a value for money proposition that entices loyalty and return visitation.
On the other hand, according to Liedtke, the main challenge is to provide experiences to families with children of all ages that are impossible to recreate at home and promote social interaction between families, which creates a unique environment in an FEC.
“Families are the heartbeat of every town, and we consider ourselves as primarily community-focused family entertainment facilities. It is no coincidence that our employees receive the most training hours in our business to build a safe and customer-centric mindset. Our customer satisfaction is market leading. People will not return to your store several times throughout the year if you do not master the basics”, he added.