Jamberoo Flashcards
Linkage and flows: Internal bussiness
Employee Structure and Recruitment: Jamberoo employs around 300 seasonal and 30 full-time staff, often recruiting from nearby towns like Berry and Kiama. Younger employees are preferred due to lower wage requirements.
Organizational Evolution and Structure: Originally a dairy farm, the business transitioned to Green Ski, then to Jamberoo Action Park. A strategic change in 2013–14 reduced operating days, cutting costs on non-profitable days and boosting revenue. Season pass adjustments also impacted visitor numbers.
Ownership and Investment Limitations: Owned by Propix Pty Ltd, a private company with all four shareholders from the Eddy family, Jamberoo’s limited shareholder base constrains its investment capacity due to reduced financial assets and borrowing capacity.
Linkage and flows: internal consumers:
Customer and Pricing Overview: Jamberoo attracts 300,000 visitors annually, with ticket prices set at $84 for ages 13–59 and $74 for ages 4–12. Children under three enter for free, enhancing family affordability.
Incidents and Insurance Impact: A fatal incident in the 1980s led to lasting reputation damage, with insurance costs rising 3–4 times in the past four years due to safety concerns.
Marketing Strategies:
-> Families: Jamberoo’s family-centered marketing emphasizes affordability, with videos, photos, and their slogan, “where you control the action,” resonating strongly (90% recognition in surveys). Under the Kangaroo Island Master Plan, family-friendly expansions like Banjo’s Billabong (2012) enhance appeal.
-> Youth (Thrill Seekers): Thrill-seeker attractions include the Funnel Web (2012), Perfect Storm, and the latest Velocity Falls trapdoor slide (2022), which boosted attendance by 25%.
Linkage and flows: External Governement
State Government Support: Jamberoo Action Park received a $600,000 grant for job creation, partially funding the development of Velocity Falls. The park operates under rules and regulations from Tourism NSW and the NSW Health Department, which mandates monthly and annual water monitoring.
Water Safety Partnership: Jamberoo collaborates with Royal Life Saving Australia through the 5 Star Water Safety Partner program, adhering to a 40-point checklist to ensure water quality and safety.
Workplace Safety and Liability: SafeWork NSW, Australian standards, and the Personal Responsibility Act (1990s) outline safety responsibilities for the park, which also requires robust insurance policies to comply with these regulations.
Linkage and flows: External local government
Original Use and Shift in Purpose: The Eddy family initially purchased the land for dairy farming, but profitability declined after the NSW milk quota reduction by Minister Don Day.
Zoning Restrictions: Kiama Municipal Council classified the 120ha site as ‘Rural Landscape’ Zone RU2, delaying investment from 2008 to 2012. The park had to appeal to the NSW Land and Environment Court to overturn council restrictions.
Development Limitations: High-elevation land on the site is zoned for ‘Biodiversity Values,’ prohibiting construction to protect biodiversity. All future developments must comply with local development control provisions.
Linkage and flows: External suppliers
Preference to use local suppliers were possible:
-> Local Nowra Chemical suppliers costs $400,000 however this year more looking like $500,000
Linkage and flows: External Competition and foreign manufactures:
Direct Competition: Wonderland’s 2004 closure boosted Jamberoo’s visitation due to lack of competition in NSW. However, the opening of Wet n Wild Sydney in 2013 decreased visitation, as 65% of Jamberoo’s visitors come from South and Western Sydney, who now had a closer option.
Reliance on Foreign Manufacturers: Early rides, like Surf Hill (2001) and Billabong Beach (2003), were made by Australian companies. Since 2012’s Funnel Web, all new rides rely on foreign manufacturers, with costs rising by 30%. COVID-related delays further impacted the construction of Velocity Falls, resulting in a six-year gap between rides.
Highly Specialized Equipment: Jamberoo sources equipment internationally, including mats and tubes from the USA, water slides from Canada, and toboggans from Germany.
Global change: Climate La Nina and El Nino
Weather Dependency: Jamberoo’s operations are significantly impacted by weather patterns, with La Niña and El Niño events directly influencing seasonal performance.
Impact of La Niña: The 2021–2022 La Niña caused frequent wet days, reducing visitation by 75% on rainy summer days as the park’s outdoor appeal decreases in wet or colder weather.
Impact of El Niño and Drought: El Niño-driven droughts dry up Jamberoo’s natural catchment dams, critical for its environmentally sustainable design (ESD), leading to potential park closures due to water shortages.
Global change Climate: Drought and water storage.
Jamberoo Action Park relies on self-sufficient water treatment, storage, and collection systems due to its rural location and lack of access to town water.
Increasingly frequent and severe droughts, like the record-low precipitation in 2019 (Bureau of Meteorology), pose operational and financial risks by limiting the park’s water supply.
Rising global temperatures intensify evaporation, threatening the park’s small dam water catchments and sewage treatment plant, which require a steady water flow to operate.
Global change: Climate Bushfire
Impact of 2019 Bushfires on Visitation: Jamberoo Action Park experienced a 40% drop in January visitation due to its proximity (30km) to the bushfires, road closures, and media coverage, which deterred visitors. January typically generates 40% of the park’s annual visitation, so this reduction significantly impacted revenue.
Effect on Park Character and Appeal: The fires and resulting smoke diminished the park’s outdoor and family-friendly appeal, affecting the picnic atmosphere and reducing investment for the 2019–2020 season. Damage to surrounding rural towns, such as Kangaroo Valley where 10% of homes were lost, further hurt tourism appeal in the Illawarra region.
Government Warnings and Fear of Isolation: Government advisories against visiting the South Coast, coupled with fears of being trapped by road closures, discouraged travel from Jamberoo’s primary consumer base in South and Western Sydney, leading to further declines in park attendance.
Global change: Suppy chain local
Local Sourcing Commitment: Jamberoo Action Park aims to prioritize local sourcing, although it still depends on foreign manufacturers for some supplies. For essential chemicals like chlorine and hydrochloric acid, Nowra Chemical Suppliers provide a local source, with costs increasing from $400,000 over five years to a projected $500,000 this year due to inflation.
Local Workforce: The park hires approximately 300 seasonal employees, primarily from nearby towns like Berry and Kiama, supporting regional employment for young workers during peak seasons.
Local Transportation Partnerships: Jamberoo relies on Kiama Coaches to transport Sydney visitors from the Kiama train station, enhancing accessibility for out-of-town guests.
Global change: Supply chain international
Early Local Construction: Jamberoo Action Park initially used Australian manufacturers, with rides like Surf Hill (2001) and Billabong Beach (2003) constructed by local contractors and designers.
Transition to International Suppliers: From 2012, the park shifted to foreign manufacturers, sourcing rides like the Funnel Web from Canadian water slide producers and importing mats and tubes from the USA.
COVID-19 Delays: The pandemic caused delays in construction for Velocity Falls, as foreign engineers couldn’t travel, leading to a six-year gap between new rides and a 10-year gap since the last ride addition.
Global change: Economic pressure globalisation
Global Inflation Impact: In 2022, global inflation surged to 7.8% (World Bank), with Australian businesses facing an average 20% increase in the cost of imported goods (Austrade), affecting Jamberoo Action Park’s operating costs.
Increased Loan Costs: Rising inflation has led to higher interest rates on substantial loans, like the $8 million loan for Jamberoo’s Velocity Falls ride, impacting financial planning and debt servicing.
Reduced Discretionary Spending During Crises: The 2007-2008 Global Financial Crisis led to a 7.3% decline in household spending on recreation (ABS) and a 6.8% drop in visitor numbers at regional attractions, including water parks (Tourism Research Australia).
Global change: Economic pressure Covid 19
Local Travel Restrictions: In March 2022, NSW health protocols restricted travel to within a 5km radius, preventing 65% of Jamberoo’s primary visitors from West and South Sydney from visiting the park.
Decreased Regional Attraction Visitation: Tourism Research Australia reported a 12% drop in regional attraction visits nationwide, due to higher travel costs and job losses among middle-class workers.
Post-COVID Surge in Discretionary Spending: JobSeeker savings accumulated by laid-off middle-class workers led to increased discretionary spending after COVID, resulting in a spike in visitation to Jamberoo Action Park.
Locational factors: Weather 2019 Bushfires
Impact of Proximity to Bushfires: The 2019 bushfires, occurring just 30km from Jamberoo, led to a 40% drop in January visitation due to road closures and media coverage, significantly affecting the park’s main revenue month, which generates 40% of annual visitation.
Decline in Park Appeal and Revenue: Smoke from nearby fires impacted the park’s “family day out” atmosphere, and the surrounding damaged rural landscape reduced the park’s appeal, leading to decreased investment and revenue during the 2019-2020 season.
Visitor Fear and Government Advisories: The government’s advisories against visiting the South Coast and fears of road closures discouraged 65% of Jamberoo’s primary visitors from South and Western Sydney, contributing to a further decline in visitation.
Locational factors: Weather La Nina and El Nino
La Niña’s Impact on Visitation: The wet summer during La Niña 2021/2022 caused park visitation to drop by 75% on rainy days, as colder, wetter weather reduced the appeal of Jamberoo’s outdoor activities.
Reduced Park Appeal During Rainy Periods: The rainy conditions during La Niña diminished Jamberoo’s “outdoor fun” character, making it less attractive to consumers during frequent wet days.
El Niño Droughts Affect Park Operations: As Jamberoo relies on natural catchments for sustainability, droughts associated with El Niño dry out surrounding dams, potentially forcing the park to close and affecting its environmentally sustainable design (ESD) values.
Locational factors: Weather additional
High Precipitation Due to Geographic Features: The Illawarra Escarpment and South Pacific Sea create orographic rainfall, leading to an average of 13 rainy days per month with 93mm precipitation, which lowers visitation by 75% on rainy days but maintains the lush, green landscape around Jamberoo.
Scenic and Climate Appeal: The escarpment provides a picturesque backdrop that enhances the park’s rural, outdoor theme, while coastal breezes contribute to a mild climate ideal for an outdoor setting, despite occasional strong winds.
No Refund Policy for Weather-Related Closures: Jamberoo’s policy includes no refunds for inclement weather, such as rain or high winds, which may result in the closure of attractions like the bobsleds or chairlift, affecting visitor experience on windy days.
Locational factors: Topography and native vegitation: Topography
Influence of Topography on Park Development: Jamberoo’s hilly terrain, with a gradient of 1:15 at its peak, allowed for unique attractions like bobsleds and ski lifts, creating family-friendly activities that showcase the scenic views of the Jamberoo Valley.
Preservation of Rural Aesthetic: The mountainous terrain and zoning restrictions around Jamberoo limit regional development, helping the park maintain its distinctive dairy farm and rural landscape, which enhances its outdoor, nature-focused appeal.
Promotion of Environmental Sustainability: The site’s topography supports Jamberoo’s ESD values, including 100% recycled water and self-sufficient water storage, reducing reliance on town water and setting it apart from competitors.
Locational factors: Topography and native vegitation: Native vegitation
Use of Native Vegetation: Jamberoo Action Park features native flora like eucalyptus trees at its entrance, enhancing its natural, rural aesthetic and providing shaded areas that support a comfortable outdoor atmosphere.
Australian-Themed Rides: Rides like the Funnel Web, named after the native spider species, emphasize the park’s East Coast NSW location and add excitement for thrill-seekers through recognizable local themes.
Australiana Iconography: Attractions such as Banjo’s Billabong incorporate symbols like kangaroos and emus, reinforcing the park’s distinct Australian identity and connection to its natural setting.
Locational factor: Accessibility distance from UC
Proximity to Sydney and Urban Appeal: With 70% of visitors coming from Sydney, approximately an hour away, Jamberoo’s rural outdoor aesthetic appeals to urban residents seeking a “family day out,” distinguishing it from competitors like Wet n Wild located in suburbanized Western Sydney.
Limited Accessibility from ACT: Visitors from the ACT represent only 4% of total visitation, leading Jamberoo to focus its marketing on Sydney (70%) and the Illawarra (18%), as the park’s “family day out” character is best suited to visitors within a 5-hour journey.
Transport Limitations: The park’s location, 10 minutes from the nearest train station in Kiama, requires private transport for most visitors. Limited bus services, operating only on weekdays, and the absence of major highways reinforce Jamberoo’s rural, peaceful atmosphere while influencing visitation patterns and the need for on-site parking.
Locational factor: Accessibilty for employment
Local Employment and Community Impact: Jamberoo Action Park employs approximately 300 seasonal workers, primarily recruited from nearby towns like Berry and Kiama, fostering a friendly atmosphere with employee benefits like free entry and a positive work environment.
Transport Challenges for Employees: Due to the park’s location, employees need access to private transport, as public transport options are limited, impacting the convenience for local staff commuting to the park.
Seasonal Pass and Local Partnerships: The Jamberoo Action Park seasonal pass offers perks like access to the Illawarra Fly Treetop Adventures, reinforcing the park’s rural and nature-based character while strengthening its partnerships with local businesses in the region.
