The Role of IP in Entertainment Destinations: When It Works and When It Doesn’t

Across the Middle East, the scale and ambition of location-based entertainment continues to accelerate. Developers are increasingly looking to create destinations that attract both international tourists and repeat local audiences, often within highly competitive mixed-use environments.

Within this context, intellectual property (IP) has become a central strategic consideration. From globally recognised film franchises to established entertainment brands, IP is often seen as a way to reduce risk, accelerate awareness and drive footfall from day one.

But while IP can be a powerful tool, it is not always the right one.

In many cases, the decision to incorporate IP is made early in the development process, sometimes before the commercial fundamentals of the project are fully understood. The result is that IP becomes the concept, rather than a strategic layer within it.

 The reality is more nuanced. IP can significantly enhance a destination when applied correctly, but it can also introduce complexity, cost and long-term constraints that do not always align with the underlying economics of a project.

When Branded Attractions Outperform

There are clear scenarios where IP-led attractions outperform original concepts.

In markets with high levels of tourism, globally recognised brands can act as a powerful demand driver. Familiar characters, stories and worlds reduce the barrier to entry for visitors, particularly those travelling with families or limited time.

In these cases, IP does more than support marketing. It shapes expectation. Visitors arrive with a clear understanding of what they are about to experience, which can translate into stronger conversion rates, higher ticket pricing and increased retail and merchandise spend.

IP can also provide a framework for storytelling that would be difficult to replicate from scratch. Established narratives allow developers to create immersive environments more efficiently, building on existing emotional connections rather than creating them entirely from the ground up.

When aligned with strong execution, this can result in highly compelling, commercially successful destinations.

When the Economics Don’t Work

However, the commercial reality of IP licensing is often less straightforward than it initially appears.

Licensing agreements can involve significant upfront fees, ongoing royalty structures and strict operational requirements. These costs sit alongside already substantial capital expenditure, increasing the financial pressure on a project to perform.

In some cases, the brand itself does not materially increase visitation beyond what a well-executed original concept could achieve. The premium paid for IP is not always matched by a proportional uplift in attendance or spend.

There is also the question of control. IP agreements often come with limitations around design, programming and future modifications. While this ensures brand consistency, it can reduce flexibility, particularly when operators need to adapt the experience over time to drive repeat visitation.

As discussed in previous work on repeat visitation in the region, long-term success is rarely determined by launch performance alone, but by how effectively a concept evolves after opening.

If IP restricts that ability to refresh and adapt, it can become a constraint rather than an advantage.

Structuring Partnerships with Global Brands

For developers who do choose to incorporate IP, the structure of the partnership becomes critical.

The most successful projects tend to treat IP as part of a broader commercial strategy rather than the foundation of the concept itself. This involves careful alignment between the brand, the target market and the overall positioning of the destination.

Commercial terms also need to be considered beyond initial negotiations. Royalty structures, revenue sharing mechanisms and performance thresholds should be modelled over the long term, not just the opening years.

Equally important is clarity around operational flexibility. The ability to introduce new programming, seasonal overlays or complementary experiences can play a significant role in sustaining visitor interest. Agreements that allow for this tend to support stronger long-term performance.

In many ways, structuring an IP partnership is less about securing a name and more about ensuring that the relationship works commercially over time.

Matching IP to Local Demographics

One of the most overlooked aspects of IP strategy is its relevance to the local market.

Not all globally recognised brands resonate equally across different regions. Cultural context, demographic profiles and consumer behaviour all influence how audiences engage with a particular property.

In the GCC, where developments often serve a mix of residents, regional visitors and international tourists, this becomes particularly important. A brand that performs strongly in one market may not translate in the same way elsewhere.

Understanding catchment demographics, income levels and visitation patterns is therefore essential when evaluating whether a specific IP is appropriate. In some cases, a locally relevant or regionally adapted concept can outperform a global brand simply because it aligns more closely with the audience it is designed to serve.

A Strategic Tool, Not a Default Decision

IP remains one of the most powerful tools available within entertainment development. When used effectively, it can elevate a project, strengthen its positioning and support long-term commercial success.

But it is not a default solution.

The decision to incorporate IP should be driven by strategy rather than assumption. It requires a clear understanding of the market, the economics of the project and the role that the brand will realistically play in driving performance.

In some cases, IP will be the right choice. In others, an original concept with strong programming, thoughtful design and a clear understanding of its audience will deliver better results.

Having worked across location-based entertainment projects in the Middle East for many years, and having lived in the UAE for over two decades, I have seen both approaches succeed and fail. The difference rarely comes down to the presence of a brand alone, but to how well the overall strategy is aligned with the market it serves.

If you are evaluating the role of IP within a project in the GCC or wider MENA region, I am always happy to discuss how it fits within the broader commercial and strategic context.