How Madame Tussauds has lost its magic as visitor numbers plummet and value declines by £262m - can it survive?
Madame Tussauds was once a favourite tourist attraction for visitors seeking that highly coveted selfie with their favourite celebs, from the Royals to Marilyn Monroe and Beyonce .
But now Merlin Entertainments has written down the value of its Madame Tussauds attractions by £262million, amid ongoing struggles faced by the business.
The 190-year-old attraction was once adored around the world - but has fallen into a steady decline since the Covid-19 pandemic.
The cost-of-living crisis, fierce competition from new attractions and a drop in international tourism have all contributed to this downturn.
'It is still a very successful brand, it's just recognising we've lost some of the volume we had in its heyday,' Fiona Eastwood, Merlin's chief executive, told the Times.
She added: 'The writedown is just an accounting to recognise the value, it is not an impact on cash.'
Merlin Entertainments, which is one of the one of the world's biggest operators of theme parks and attractions, is the name behind places such as Madame Tussauds, Legoland, Alton Towers and Chessington World of Adventures.
It comes as part of a general decline across the brand's attractions.
Madame Tussauds, in its heyday, drew in tourists from around the world
But in recent years, the waxworks have welcomed in fewer visitors - and Merlin has written down Madame Tussauds by £262million
In terms of visitor numbers, the total number at Merlin attractions dropped from 62.8million in 2024 to 60.5million in 2025, a 3.6 per cent drop.
Similarly, Merlin's annual revenue dropped to £1,999 million in 2025, compared to £2,057 million in 2024, down 1.6 per cent.
Over the last year, the company has been restructured - its three operating divisions have joined, putting 130 separate businesses into one group.
As a result, the company has faced 1,000 job cuts, resulting in £37 million in cash savings - and a cost-cutting plan is set to save even more money.
A statement on Merlin's website explained: 'Based on current trading performance and the wider macroenvironment we applied a £262 million impairment to the accounting value of the Madame Tussauds proposition on the balance sheet.
'This establishes an accurate baseline from which to reinvigorate and refresh the brand's offering in line with changing consumer trends and expectations.'
Madame Tussauds has struggled in recent years, in particular following the Covid-19 pandemic - and was already given a £163 million write-down in 2024.
Despite rising visitor numbers in 2024, revenues fell by 3.2 per cent to £2bn, while the company plunged to a loss before tax of £492m, widening from a loss of £214m the year before.
Back in the day, a coveted photo with your favourite celebrity was high on the travel bucket list - but now, it seems the attraction has lost some of its appeal
The cost-of-living crisis has also contributed to the decrease in popularity across Merlin attractions
Greg Johnson, an analyst at Shore Capital, told The Telegraph last year: '[Madame Tussauds] is a model that has felt past its shelf life for a long while.
'That idea of seeing famous people on what feels like a real-life basis, I don’t think that works now.'
The nature of celebrity has changed, another report explained - and fame is much more easily achieved in a digital age, removing some of the 'special' status coveted by stars who have waxworks of themselves.
Ongoing competition could also be a threat, as several new parks and attractions are set to open in the near future.
In London in particular, visitors are prioritising free events and exhibitions - unlike Madame Tussauds, which has tickets starting from £27 per adult.
Meanwhile, Universal Destinations & Experiences is developing a major new theme park and resort in Bedford, UK, with construction officially starting in early 2026.
The resort is expected to span 476 acres on Broadmead Farm and will boast a 500-room hotel as well as a retail and entertainment complex alongside the ride.
Universal Studios is expected to welcome 8.5 million visitors annually, with 55,000 guests on peak days.
Plus, Puy du Fou, a French company known for its popular park in the Loire region, is set to open a new £600million history-themed attraction in Oxfordshire.
Defending Madame Tussauds' decrease in value, Fiona said: '2025 was a transitional year for Merlin, during which we took decisive action to stabilise the business and strengthen its financial and operational foundations.
'We simplified our operating model, reinforced cost discipline, established a new Growth function, and strengthened our leadership team, creating a leaner and more unified organisation.
'As a result, we are now in a stronger position to maximise the value of Merlin's unique and highly diversified portfolio, and the breadth of the iconic brands we bring to life, to deliver our vision of being the world's most loved family escape.
'While the external environment remained challenging, our proactive steps delivered a clear improvement in performance as the year progressed.
'We have turned a corner and are firmly on the path to improved profitability and sustainable growth.
'Merlin is now a stronger, more disciplined and more resilient business. Transformation will not be linear, but our direction is clear.'
