Roller coaster ride continues at amusement parks and arcades

Following a long winter slumber, seasonal amusement parks spring to life during the May long weekend. Operating revenue in the amusement parks and arcades industry has been on a roller coaster ride since the onset of the pandemic, with 2022 marking a series of record highs.

Prior to the pandemic, operating revenue in the amusement park and arcade industry was rising steadily, peaking in 2019, followed by a sudden 56.1% drop in 2020 during the first year of the pandemic and a partial recovery in 2021.

Operating revenue at amusement parks and arcades soared to a record high $996.5 million in 2022, up 96.5% from a year earlier and 28.8% higher than prior to the pandemic in 2019.

Just over half ($498.8 million) of the amusement park and arcade operating revenue was generated in Ontario in 2022. Quebec ($157.2 million) and Alberta ($146.2 million) ranked a distant second and third.

Wages, salaries and benefit costs hit a record high $259.8 million in 2022, up 70.9% from a year earlier and 16.2% higher compared with 2019, prior to the pandemic.

In July 2019, 11,954 Canadians were working in the amusement and arcade industry. This number fell to 4,959 in July 2020 and reached 11,140 in July 2022.

The bottom line for the amusement and arcade industry in 2022? A 17.1% profit margin—the largest on record—two years removed from the record drop in 2020.

Arcades account for about one-third of total amusement park and arcade industry revenue

The golden age of arcades was in the 1980s and 1990s, before the advent of home gaming systems.

Today, you will find arcades in bowling alleys, movie theatres and tourist destinations across Canada. Arcades generally account for approximately one-third of the just under $1 billion annual amusement park and arcade industry revenue.

By way of comparison, retailers sold $444.5 million of game software in 2023.