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The encyclopedia · Strategy & Leadership · Strategic decision · 2005–2017

Space World survived 27 years and a bankruptcy — then the land lease was not renewed

Japan's space-themed amusement park survived 27 years and a 2005 bankruptcy, then closed in 2017 when the landowner refused to renew its lease

Space World · Kamori Kanko · 2017-12

What happened

Space World opened in April 1990 on a former Yawata Steel Works lot in Kitakyushu: a 240,000-square-metre space-themed amusement park built by Nippon Steel as part of the steel giant's move into leisure. At its peak in fiscal 1997 it drew 2.16 million visitors a year, riding Japan's theme-park boom with attractions themed around space travel.

The boom did not last. Attendance slid through the late 1990s and 2000s, and in May 2005 the park's operator — a Nippon Steel subsidiary — entered court protection. Two months later resort operator Kamori Kanko took over, keeping the park running for another twelve years even as visitor numbers kept falling and local competition grew.

In December 2016 the park became a global joke for the wrong reason: a promotional 'ice rink' it had built was studded with thousands of frozen fish, drawing worldwide mockery until it was dismantled within days. The real problem was the ground, not the gimmick. The land belonged to Nippon Steel & Sumitomo Metal, and when lease talks failed, the park announced it would close at the end of 2017.

The park closed at the end of December 2017 after 27 years. City officials had held talks with Nippon Steel over the site's future, but no agreement came — the landowner saw little reason to keep a theme park on prime former steel-mill land. The failure was not one dramatic mistake but a slow decline: falling attendance, an ageing format and a lease that was never guaranteed.

Why it happened

  • Attendance never recovered from the 1997 peak of 2.16 million as Japan's theme-park boom faded and the format aged.
  • The operator's 2005 bankruptcy under its steel parent showed the park was a side business; after the Kamori Kanko takeover it ran without the parent's financial cushion.
  • The December 2016 frozen-fish ice rink stunt drew global ridicule and damaged the brand at the worst possible moment.
  • The park did not own its land: Nippon Steel & Sumitomo Metal was the landlord, and once lease renewal failed, no amount of park performance could save it.
What it costClosed Dec 2017 when the land lease failed to renewcostly

The lesson

A theme park is only as safe as the land under it. Space World outlived its own bankruptcy but not the lease with its landowner — settle the ground before you build the rocket.

Sources

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