The location is absolutely an issue. Just because an area has a lot of visitors doesn't mean that a business can do well.
Myrtle Beach is a top beach vacation spot for families. Most commonly, people spend all year working to save for their yearly family vacation and go down to Myrtle Beach for a week to enjoy the beach. I myself have been visiting North Myrtle Beach since I was an infant. I have seen numerous different parks of various scales and different areas in this town close down, simply due to not enough patrons. This isn't like Orlando where people travel for the parks, they travel for the beach, and when these families are already spending the cash they are to be there, they are more likely to spend their few days at the restaurants and the beach itself. The one park I have seen carry on there is Family Kingdom, and they are very much a small OCMD Jolly Roger style park where the access threshold is low (low price) and it is a good spot to have some casual fun for an evening. The all-day park style that was the Freestyle Park simply doesn't work here, as they rely on far too many people wanting to shell out the cash to spend one of their few days at the beach at an amusement park they could probably get closer to home.
Parks of this tier don't belong in vacation towns. Smaller parks succeed in vacation towns due to the high accessibility and low time requirement, and insanely large parks like Disney and Universal survive because they attract the vacationers themselves. Parks of this size need a continuous and sizable local audience as well as nearby travelers to break even, since they definitely weren't running the place on the cheap side. Competition was never an issue, it was simply just a market that didn't exist.