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Theme Parks are, to simply put, amusement parks based upon a theme of some kind. They can range from campy mom-and-pop affairs, such as those tucked in among the lovely glacial ravines of New Hampshire's White Mountains, to high-tech vacation destinations run by big corporations, like the Six Flags parks and Universal Studios. And, of course, the Disney Theme Parks. For a whacking load of pictures and videos from many parks all over the world, go to Theme Park Review. Yes, it's Exactly What It Says on the Tin.
Outside just themed environments, theme parks often try to tell stories through their attractions. It's mostly the larger theme parks that put this much effort into this, using incredibly detailed sets, animatronics and special effects to really push visitors into the setting.
Speaking of, Disneyland is certainly the Trope Maker here. See also Souvenir Land. A related trope is The Theme Park Version, used to describe something that has been simplified and sanitized for mass consumption.
For the video game, look at Theme Park.