London, Wednesday, 22 October 2025.
In a BBC interview last Saturday, Merlin Entertainments’ CEO set out a clear 12‑month playbook: accelerate global rollouts of IP‑led attractions (LEGO, PAW Patrol, Bluey, Minecraft), prioritise targeted capex in key markets and press UK policymakers for a lower VAT and planning reform to unlock cheaper, faster development. For retail and location strategists, the most striking claim is the direct link she drew between tax/planning settings and site selection — Merlin says policy shifts could materially alter where and when new attractions open. The conversation also acknowledged industry headwinds (post‑pandemic recovery, cost‑of‑living impacts and a recent credit downgrade) and the competitive threat from screen time, which is shaping partnership choices. This briefing previews Merlin’s near‑term pipeline focus, implications for destination competitiveness, and what a policy‑enabled capex re‑rate would mean for landlords, planning teams and investment timetables.
Merlin’s 12‑month playbook: IP rollouts, targeted capex and UK policy asks
In a BBC Big Boss Interview that aired in October 2025, Merlin Entertainments’ CEO outlined a clear set of priorities for the coming 12 months: accelerate global rollouts of intellectual‑property (IP)‑led attractions — naming LEGO, PAW Patrol, Bluey and Minecraft — focus capital expenditure on priority markets, and press UK policymakers for tax and planning changes to make domestic investment more attractive [2][1]. The public statement linked commercial site‑selection and capex timing directly to the UK policy environment, framing a lower VAT rate for visitor attractions and planning reforms as enablers for inward tourism and faster development pipelines [1][2].
Why IP matters: countering screen time with branded experiences
Eastwood argued that the company’s chief competitive threat is rising at‑home screen time among children, and that stronger IP partnerships are a strategic response — translating screen brands into real‑world, revenue‑generating experiences that can drive attendance and dwell time across Merlin’s global estate [2][3]. The CEO described recent and planned partnerships — including new Minecraft experiences alongside existing LEGO, Peppa Pig and Bluey ties — as part of an intentional shift toward brand‑led attraction development to recapture family leisure spend [2][1].
Linking tax and planning to site economics and timing
Merlin’s public plea to Treasury and local planning authorities was explicit: a growth‑focused UK budget and a lower VAT on tourism and leisure would materially improve the economics of developing attractions in the UK, helping cities compete with continental European destinations for inbound tourism and making inner‑city or brownfield projects more viable [1][2]. Eastwood told the BBC that planning system agility is a major barrier to faster delivery; the company foresees that policy shifts could change where it selects sites and how it allocates capital across markets [2][1].
Context: sector headwinds that shape Merlin’s strategy
The remarks came amid ongoing industry headwinds cited in the interview — the legacy effects of pandemic lockdowns, consumer pressure from the cost‑of‑living environment and a recent credit rating downgrade for Merlin, all of which inform more cautious capital planning and a focus on IP attractions that promise higher per‑visitor yields [2][3]. Those constraints help explain why Merlin is prioritising ‘targeted capex’ rather than broad, unfettered expansion, and why taxation and planning levers are presented as high‑impact multipliers for investment returns [2].
Implications for landlords, planners and investors
If the UK were to lower VAT for the attractions sector and streamline planning, operators such as Merlin could re‑rate UK projects by shortening delivery timelines and reducing tax drag on cashflows — changes that would shift risk profiles for landlords, accelerate lease and land negotiations, and potentially increase the pool of economically viable sites in urban catchments [1][2]. For investors, a policy‑driven fall in effective development cost would raise expected returns on destination assets, but this outcome depends on government action and local consenting speed [alert! ‘timing and magnitude of policy changes are uncertain and depend on future government decisions’] [2][1].
What industry stakeholders should watch next
Professionals evaluating destination competitiveness, capex timing and partnership opportunities should track three near‑term signals mentioned in the interview: the Chancellor’s Autumn/Winter budget announcements, any concrete HM Treasury moves on VAT for leisure and tourism, and local planning reforms or pilot consenting routes that reduce lead times for attraction development [1][2]. These signals will indicate whether Merlin’s public advocacy is likely to translate into tangible shifts in site selection and investment cadence over the next 12 months [2][1].
Bronnen