Much is being written about the anticipated surge of the ‘not so old’ concept of Drive-In Cinemas in the region.  In truth, the 1950’s concept had not been seriously contemplated until recent social distancing restrictions were imposed. It now seems like a good idea.

Movie enthusiasts and those wanting to escape their homes appreciate the options that the experience provides, within the safe confines of their personal vehicles. Operators are finding it an innovative way of conducting business and opening avenues for much needed revenues streams.

One cannot deny the merits of the concept in the current restrictive environment. As a result, a leading mall developer in the UAE recently opened their doors to this vintage entertainment concept and more developers are aspiring to open similar concepts in their existing projects or make use of dormant and unused land.

So, what are the success factors and challenges of drive-in cinemas and is it is a solution that is likely to remain, or will it fade out once restrictions are lifted and normal social interactions return?

The history of drive in cinemas date back to early 20th century, where a drive-in cinema would provide special outdoor entertainment for people who owned cars. The drive-in cinema was a seasonal opportunity in Western countries, which benefited during pleasant summer months. With the cost of car ownership lowering in the US during the late 1950’s, there was a growing demand in the outdoor cinema experience and many operators looked to innovate the concept by bringing in other stakeholders. F&B outlets (food trucks, diners), family entertainment and leisure providers collaborated with the cinemas to provide an all-encompassing experience to those that came. 

As time progressed, the land originally used for the drive-in cinemas, became perfect for commercial development. The location had already become popular amongst the local population for its entertainment and leisure purposes. It was obvious therefore, that there was greater commercial value of such land plots, hence many drive-in cinemas were then closed and converted into malls or real estate complexes. Also, the concept was somewhat seasonal, and didn’t appeal during times of rains or snow, hence converting the space into a proper real estate project made more sense commercially.

So how might the concept translate in the Middle East? Untapping the commercial land value isn’t the real objective for opening a drive-in cinema in this region. The first drive-in cinema that has recently opened in Dubai, is positioned on the rooftop parking area of a mall, with the idea of bringing in additional revenue streams for the mall operation. In the majority of cases, mall parking areas generate little to no revenue. Therefore, charging a ticket price per car would monetize a ‘dead space’ area. The revenue may not match levels that were previously observed in actual cinemas and multiplexes, but it would significantly outweigh that of the previous isolated parking use. Nevertheless, the concept attracts additional footfall, and ensures visibility for the medium to long term.
The table below highlights the merits, as well as the challenges, that are identified around the use and implementation of drive-in cinemas in the region:

WAY FORWARD

The drive-in cinema may start to garner some momentum in the coming months but may be just a temporary solution during our current situation. It will require more refinement, if it is to be a successful concept in the long term. The concept will need to look to tie up with other outdoor pursuits and activities as well as variety of F&B options. Quite a few vacant land parcels exist in established neighborhoods of throughout the region, which are either left vacant or used as paid car parks on temporary basis. Such land parcels are well located and a strong catchment around these plots make them well positioned for new ideas, in fact better than mall car parks, which are quite restrictive and pose access issues over the longer term. The idea of tying up with relevant partners such as F&B and activity organizers can lead into creation of pop-up cinemas or pop-up destinations, adding another element to the entertainment and leisure sector of the UAE. Activities or concepts like skate parks, extended beach pool and play areas, small urban art and music festivals, paddle tennis, outdoor cross-fit & fitness and sand games are few such elements that could tie in well with a pop-in or drive-in cinema for a perfect outdoor destination in the winter months. These concepts may be seasonal, but they also involve very low costs for set up and running the operations.

For more information or advice on potential for your portfolio or vacant land parcel in the region, please contact the Strategic Consultancy team at Savills Middle East.