Disconnect Between Location Based Entertainment Companies and Landlords During Pandemic [SURVEY]

The recently completed survey conducted between late April and mid-May 2020 by Hong Kong based Scallywag Entertainments and USA based Samuels and Company, Inc. finds that Location Based Entertainment (LBE) attractions do not expect to resume normal business until the next 13-24 months. This poses a clear challenge with landlords whose current support measures (if they are offered at all), are limited to 3-6 months of rent reduction or rent deferrals.

Key findings of the survey are:

• Most landlords are offering delayed rather than reduced rents seeking to ‘kick-the-can down the road’.

• For companies receiving rent reductions, these range from less than 25% up to 100%, with no geographical correlation.

• 64% of those surveyed are benefiting from Government delayed tax payments, but only 36% from actual tax reductions.

• Redundancies have been actioned at 32% of companies, but most opting instead for voluntary and involuntary furloughing for now.

• Temporary pay reductions also prevalent with 58% of companies activating measure

• Most LBE companies plan for staff mandatory temperature checks and masks but policies less consistent for customers

• 78 new attraction projects on hold globally

Click on the article image below to read the full survey: