Former Funworld owner raises red flags over new Durban theme park

The former operator of Durban’s iconic Funworld has expressed significant scepticism regarding the sustainability and financial viability of eThekwini Municipality’s recently announced R1 billion theme park development, planned for the same beachfront site.

Nic Steyn, whose family ran the original Funworld for decades, describes the project as “possibly another big mistake in the making”, citing concerns over the massive capital expenditure, profitability, and the challenge of attracting international-level spending in the local economy.

Read: R1bn amusement park planned for Durban’s Golden Mile

The project, which is set to open in 2027, is being undertaken by Masithu Consulting and Project Managers (MCPM) under a long-term 45-year lease granted by the city.

It is seen as a major leisure and entertainment development for the South Beach and central parts of the Durban beachfront.

Scepticism

In an interview with Moneyweb editor Ryk van Niekerk on RSG Geldsake, Steyn outlined his reservations about the financial scope and strategy behind the investment:

• Financial return: Steyn questions the sheer size of the R1 billion investment, calling it “crazy money”. He says he “can’t fathom” how the developers expect to achieve the massive turnover required to get a return on such a large amount of capital.
• Cost barrier to entry: Funworld’s previous success was based on keeping costs down by building much of the infrastructure themselves. Steyn raises doubts about the new park’s model, asking who in South Africa “is going to spend that kind of money for a day”, noting that equivalent overseas amusement parks to the one now envisaged charge as much as $60 to €80 (roughly between R1 000 and R1 500) for entry.
• International consultants: It was noted that the new development is using international engineering firms, including those involved in the design of Disney World and Ferrari World. However, Steyn cautions that these consultants “don’t know the reality of the local economy”, especially when development costs are incurred in euros and dollars while revenue is earned in rands.

Steyn says he is highly sceptical of the entire plan, comparing the potential outcome to other controversial developments in the city: “I look at uShaka [Marine World], I look at Moses Mabhida Stadium, and I just think it’s possibly another big mistake in the making.”

Steyn’s family-run Funworld operations came to an end in May 2023.

Asked why it closed, he said the lease expired in 2017 and the business had been operating on a month-to-month basis.

Despite attempts to sell the park to new owners, he claims the municipality “didn’t really play ball” in granting a long-term lease, eventually making it too difficult to carry on.

The veteran operator confirmed he has no involvement in the new project.

City investment and future of uShaka

The new R1 billion park is intended to be a major leisure and entertainment investment on the Durban beachfront, and was unveiled by eThekwini Mayor Cyril Xaba.

The city is contributing the land lease for 45 years as an ‘in-kind’ public investment to ensure the project’s long-term viability.

The new development also raises questions regarding the city’s existing amusement park assets.

The municipality runs the uShaka Marine World theme park near the Durban Harbour entrance. While the city had previously made plans to introduce ‘hard rides’ at uShaka over a decade ago, there has been no movement on this, and the municipality has not commented on how the Funworld investment could impact those earlier plans.

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