Surfing has re-entered the mainstream in recent years, driven by Olympic exposure, global media and the allure of engineered waves. With this increased popularity, it should be no surprise that surf parks have evolved in tandem, moving from training facilities into amenity additions that frequently anchor mixed-use developments.
Europe proved the concept, but North America now leads the industry's next chapter, outpacing every other region in capital, projects and open facilities heading into the fourth quarter of 2026.
Having studied a variety of surf park resort concepts across North America, Hotel & Leisure Advisors (H&LA) is optimistic about surf park development for the resort and residential industries. However, that optimism also gives way to caution that a rising national tide does not lift every project equally.
Surf park resorts are among the most capital-intensive and operationally complex leisure assets we evaluate, and their success is highly market-specific.
This article examines the participation data underpinning the sector's momentum, the development pipeline it has produced, and the operating, regulatory and feasibility conditions that ultimately determine which projects get built and which get tabled.
Market growth backed by data
The U.S. surfing market continues to expand, with approximately 4.23 million participants in 2024, up 5.9% from the prior year and at a compound annual growth rate of 8% since 2019, according to the Sports Industry and Fitness Association (SFIA). Notably, casual surfers account for approximately 69% of participants, representing a broad potential customer base for surf parks beyond the core surfing market. Attendance at existing surf parks generally ranges from 50,000 to 200,000 depending upon the capacity of the surf park and location.
For surf parks, however, national participation trends are only the starting point. What drives a viable proforma is the local, drive-time demand weighted by household income and discretionary recreational spending. Surf park resorts may attract many overnight visitors who will utilize an attached hotel as well. Residents within the primary and secondary drive-time areas may represent the most consistent source of day-use visitation, while more distant markets can contribute overnight stays, particularly when the surf park is paired with a hotel or other resort amenities.
The strength of that drive-time market must then be evaluated against the characteristics of the population within it. Household income, discretionary spending, participation rates, competitive recreational offerings and the propensity to travel for leisure all influence how frequently consumers may visit and how much they are likely to spend.
A site located within a large population base may not necessarily represent a strong market if the surrounding households lack the income or interest to support the experience. Conversely, a smaller but affluent and highly engaged market may generate substantial demand. To evaluate all of these factors, a site-specific market study is critical to analyze the potential demand levels and assess the potential for repeat and destination visitation.
North America leads the development wave
North America's most significant development to date is Atlantic Park in Virginia Beach, where the first major Wavegarden Cove lagoon in the U.S. opened in late summer 2025. The Pharrell Williams-backed mixed-use development project, with $350 million in total development costs of which approximately 10% to 15% represented the surf park component, is home to the country's largest surf basin.
DSRT Surf followed in Palm Desert in 2026, pairing a Wavegarden Cove lagoon for roughly 70 surfers with a 139-room hotel and 57 villas. The Point Surf Park in Fellsmere, Florida is one of five Endless Surf projects, including Cabo San Lucas, targeting a 2026 opening.
The common thread is instructive, demonstrating that nearly every headline North American surf park sits within a larger mixed-use development that combines the surf lagoon with lodging, residential, retail, and food and beverage. In H&LA's experience with these types of developments, the surf basin is typically a demand generator and placemaking amenity, not the primary profit center; a portion of the return comes from the surrounding hotels, residential real estate and ancillary spending.
Proven operators set the pricing and programming benchmark
Established North American operators continue to shape industry benchmarks for pricing and guest programming. Waco Surf in Texas remains a resort-style reference point for public session access using PerfectSwell technology, while Palm Springs Surf Club in California has been recognized for its off-season strategy, including complimentary demo days and cross-promotions with surfboard brands to sustain shoulder-season demand.
Industry-wide, a 2025 pricing survey covering more than 25 global surf parks found one-hour session costs ranging from $20 to $950, with a global average of $129 per standard session. That range reflects flexibility that lets operators serve both beginners and destination tourism guests from the same facility, and it speaks to a clear participation split, where a large casual base and a smaller but generally more affluent core segment occupy the same venue at different price points.
Conclusion
North American surf parks are in a sustained growth phase, not just a temporary surge: participation has risen for five straight years at an 8% average annual rate, concentrated in the casual segment engineered waves are built to serve, with roughly a third of participants living where the ocean is not a practical option. Pipelines from Wavegarden, Endless Surf, American Wave Machines and Surf Loch will grow the number of surf park venues in the United States and globally. Capital investors show cautious interest, as the surf park industry matures and the potential for commercially viable projects becomes clearer.
However, surf parks remain among the harder leisure products to execute, and a candid understanding of a project’s financial viability is what separates a qualified investment thesis from enthusiasm. Development costs for mixed-use projects reach into hundreds of millions and concentrate capital in a single purpose-built asset.
Climate and seasonality are also significant factors in whether a project thrives or fails. Operating and maintenance costs are high and ongoing.
A recent example underscores these execution risks. In May 2026, the Town of Gilbert, Arizona, and developer WhiteWater West Industries mutually terminated the lease for the proposed Cactus Surf Park, ending a roughly $60 million, 25-acre effort adjacent to Gilbert Regional Park that had cycled through multiple developers since 2019 without ever breaking ground.
As the pipeline expands, market saturation and late-entrant risk may become material considerations. This is where feasibility analysis provides lenders and equity partners independent validation of demand, pricing and projected cash flow. A thorough market study is frequently what advances a concept to a funded development. The projects that ultimately succeed will be those aligned with the right markets and sized to realistic demand and pricing.
David J. Sangree, MAI, CPA, ISHC, is President of Hotel & Leisure Advisors (H&LA), and Stephen Szczygiel, CHIA, is a Senior Associate at Hotel & Leisure Advisors. H&LA is an international hospitality consulting firm specializing in appraisals, feasibility studies, impact analyses, economic impact studies, and litigation support for the lodging, waterpark, and leisure industries.
This column is part of ISHC Global Insights, a partnership between CoStar News and the International Society of Hospitality Consultants.
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