TSR has learned of Environmental Taxes from the European Union that hope to apply levies against those deemed to be affecting the environment that could now target entertainment. Also known as ‘EU Green Tax Package’ the European Commission is looking at the impacts of pollution, linked to the various Green House gas issues (Global Warming), as well as a need towards sustainable business, with a limitation on the use of non-reusable resources, and scares materials. The watchword seems to be ‘Sustainability’ and ‘Self-sufficiency’. Elements such as the ability for new business using self-generated power (solar, wind and bio-mass), as well as the important ability to manage waste and water needs - creating a limited impact on the environment.

The EU has started a dedicated move to list and address specific ‘polluters’ and high-risk industries that have to be policed. Industries include in the first phase what are seen as some of the most polluting and wasteful (roped together as ‘Unsustainable Industries’), measured against - pollution control, energy conservation and generation, agriculture, material usage (this list taken from the Green Party, but is known to be similar to the thinking of various EU studies).

Industries that are vulnerable to the first phase of legislation and attack from Green Taxes include the chemical, airline, electronics, automotive and transportation industries along with their peripheral suppliers and operators. Obviously the various associations representing the industries initially targeted are concerned, and already have seen extreme resentment to any taxation or restrictions to their members business.

Initial industries targeted include the Airline business, recent media coverage of the complaints by the French airline industry against a levy applied to tickets to finance development aid. This was also linked to the possibility of EU members capping pollution from airlines directed by the European Commission which could see a reduction in air routes for certain carriers.

And so to the focus of The Stinger Report; the Theme Entertainment industry, and suddenly the possibilities of this industry being targeted internationally by ‘Green Tax’ levies; to many operators this may be the first time that the realization is sinking in that the respective governments at their location could come gunning for them! So what are the issues?

- Why Entertainment?

The recreation scene is not given a glowing bill of health by the European Commissions consultative boards that are compiling policy. Take apart the entertainment industry and we see conflicting activities that place it into direct competition similar to the larger polluters.

Water management for the various guest services, the vast amount of electricity needed to power services and attractions, and the vast product and wastage generated. Indirect impacts include how the guests travel to the various facilities and the waste that they generate while there. All these aspects flash red lights in the support of existing facilities, levies and restrictions on expansion plans and new venues. We could see entertainment on the large themed venue scale become an endangered species if all guidelines are fully policed.

- What Can Be Done?

Beyond active lobbying by industry bodies right now; there are some basic plans that can be implemented in the medium term. With regards power generation - the application of solar powered systems to initially generate facility power is an option, but also over a period of time offer Carbon Credits for a large facility (selling power back to the energy grid for Eco Credits) to be considered. This has been made reality by the advances in ‘Photovoltaic’ systems, able to generate power from sunlight. The ability to install systems within the park buildings and dead space areas are being considered - one park in Europe has even investigated the opportunity of totally covering their guest parking structures.

The installation of power saving methodology within the venue also plays its part, ranging from power saving light bulbs to special conversion power sources and low power systems. This could be a contentious issue in the future as parks implement longer opening hour concepts to bolster attendance. In addressing the power that the guests use to get to the venue also addresses the issues of Green House gas generation from excessive use of motor vehicles, especially with small amounts of occupants. The parks will have to consider limiting the amount of car time to their sites, and the possible embracement of local transportation systems and in pooling the number of guests moved. This could include attempting to dissuade guests hiring cars, or traveling vast distances - though there is the danger of dissuading the guest completely.

Water sufficiency for a theme park - let alone a water park - seems an insurmountable issue, even with the best filtration systems, being able to reuse water (Grey and Brown water recycling) is taxing many minds before they are literally taxed! The collection of rainwater, the sinking of wells, reed filtration ponds, and the development of special guest services incorporating water efficiency management, all play a part in addressing this wastage.

- What level of levies?

A price increase on tickets could be instigated by operators, along with increases on theme venue services and products. The operators will have to weigh green measures employed through-out a venue against the benefits of increased ticket prices, though governmental evaluation to see if enough is being done will also impact the amounts charged. For example a ratio of taxation could be applied monitoring how the guest plans to get to the facility, the duration of their stay, and any efforts they make to be more socially aware (represented by a points system).

Indirect taxes on the purchase of entertainment could be a factor in the industry’s future. In the UK credit card companies are adding a gambling fee to any transaction made using cards from Internet bank Egg and conventional banking operation Royal Bank of Scotland. Called a ‘Gambling Transaction’ and taking affect in May’06, this is not a levy by government, but a means for the bank to extract a charge for the use of the banking service, and a fee that will in part go towards protecting the bank from fraud and possible governmental taxation against supporting the gaming sector. A similar system could be applied to those buying themed entertainment venue services.

Another pressure on theme park venues will come indirectly from the local authorities in the area of their venue. These local officials are being pressured to achieve EU structured targets in the amount of landfill and pollutants generated by their respective companies covered in their area. The amount that councils will now be taxed for Landfill will play a factor in local taxation applied.

Breaking Stinger News - The possibility of a levy being applied sooner than many had thought was revealed with the discussion outside of the European Union by North American legislators. The Philippines capital (Bogotá) started the implementation of a 30 per cent ‘Amusement Tax’ on all venues within the capital as a means to address expenditure caused by increase tourist and visitation on location such as theme park, theatres, cinemas and circuses. The City Government looked at the tax as a purely fund raising option for the city’s coffers but it was also revealed that the need to address garbage and power usage saw levying a tax on the ‘amusement’ sector as new means to generate revenue.

While many in the amusement scene will look at this story as a big venue problem it has to be remembered that many sites have to consider their Social Awareness, and possible levies applied to their particular business model. Not all of us will be able to cover our roof with photovoltaic systems, but the use of energy efficient bulbs and better resource management are factors for all businesses.

The larger casino sector is taking this in their stride, and already there is talk of Las Vegas seeing Green economy feature supported in the various hotel casinos. In the UK the possibility that there will be more than originally revealed number of Super-Casinos took a step closer with the leaking of a secret government report with 40 Super Casinos in an eight-year schedule of the UK. Though refuted by the Labor Government; sources are skeptical to the validity of original claims of only ever being one test site, and see this number as a believable proposition.