With visitor numbers down by more than 15,000 compared to last summer, and a revenue shortfall of $326,000, Hastings District Council made the callto shut the park seven weekends earlier than planned.
In recent years, the iconic Waiwera Hot Pools north of Auckland and Miranda Hot Springs in Tasman have closed, while Waingaro Hot Springs in Ngāruawāhia has recently been put up for sale.
So are water parks sustainable in an unpredictable climate? And what does it take to keep a water park profitable in the long run?
For that, in New Zealand, you have to turn to one place – Hanmer Springs Thermal Pools and Spa – where the complex has made a profit every year this century.
Manager Graeme Abbot said quality customer experience, operational efficiencies, and continuous marketing were fundamental to keeping a water park viable.
Owned by the Hurunui District Council, the park has operated for more than a century, and has found a way to consistently remain in the black, despite setbacks such as Covid and difficult summers.
“We’ve made a profit every year for the last 25 years,” Abbot told Hawke’s Bay Today.
Unlike Splash Planet, Hanmer Springs Thermal Pools has hot pools allowing it to operate year-round, meaning it can spread costs across 12 months instead of just during the summer season.
The two biggest operational costs for a water park are electricity and staff wages, Abbot says.
Water slides at the Hanmer Springs Thermal Pools and Spa.
Jason Beck, chief financial officer of the Hurunui District Council, said the Hanmer Springs water park operates without direct council subsidies, unlike Splash Planet, which relies on ratepayer contributions.
“Council does provide loan facilities for any capital expenditure, which the HSTP&S pays interest at agreed rates, which is designed to mirror the market rates,” he told Hawke’s Bay Today.
“Excluding interest and depreciation, the overall annual operating costs (not just maintenance costs) ... for the 2023/24 year was $10,682,629 – this includes the operational cost for the thermal pools, spa facility, café and the information centre. The average monthly costs are $890,219.“
To stay financially viable, Hanmer Springs has implemented regular ticket price adjustments, optimised staffing based on demand and used promotional deals on discount websites such as Bookme New Zealand.
“And we run our own promotional deals as well. Right now, we’ve got a limited time ... to purchase tickets at 33% off,” Abbot said.
He said Hanmer Springs also regularly reviews pricing in line with inflation, raising ticket prices when necessary to keep up with rising electricity and wage costs.
A key to Hanmer Springs Hot Pools’ success is heavy investment in marketing and continuously introducing new attractions to keep visitors engaged, Beck said.
“You’ve got to keep introducing new products ... otherwise your customers get a bit bored.”
However, the water park in the South Island wasn’t immune to this summer’s challenges.
“We were 7% down in terms of customer numbers for this January,” Abbot told Hawke’s Bay Today.
Splash Planet faced an even bigger struggle.
A report to Hastings District Council showed that to meet its budget, the park would have needed to generate $78,500 per day, which meant drawing more than 2450 visitors each day.
However, for 60% of the season, daily attendance was below 882.
At the time of the closure vote, ratepayer contributions to the park were projected to be $1.7 million for the season, exceeding the $1.42m originally budgeted for 2024/25.
Hastings District Council told Hawke’s Bay Today that a review of the 2024/25 summer season is under way.
“[There are] a number of potential options for the future. These options will be taken to council within the next eight weeks allowing time for any changes to be put in place for the 2025/26 summer season.”
