Merlin Entertainments, one of the world's largest visitor attraction operators, has unveiled the second stage of a £17.5m scheme to upgrade the London Eye over the next three years.

A new £5m purpose-built 4D cinema has been established at the capital's South Bank attraction, which will now be known as the Merlin Entertainments London Eye as part of efforts to create a new brand identity for the London landmark. The pre-flight cinematic experience aims to provide visitors with the chance to view aerial footage of the London Eye combined with 3D technology and 4D sensory effects, such as wind, snow and smell, before embarking on their actual journey.

In addition to the new cinema, the London Eye's ticket hall and information areas have undergone a revamp as part of the scheme, which also follows the news earlier this year that Merlin is investing £12.5m ahead of the 2012 Olympics to upgrade the attraction's capsules to improve comfort and visitor experience. The 4D film was developed at Pinewood Shepperton studios by Centre Screen Productions in association with 3D production companies Pablo Post and Principal Large Format, while Kay Elliot was the design architects and construction work at the Grade III-listed building was led by Collins Construction.

Merlin Studios, Merlin's creative hub, was also involved with the scheme, which took a year to complete. Merlin chief executive officer, Nick Varney, said: "This very significant investment programme not only reflects our confidence in the London leisure market, but also marks a new phase in the development of the Merlin Entertainments London Eye, underlining its position as one of the primary attractions in the Merlin Group.

"The new 4D cinema, and other changes will provide an even more exciting experience, not just for first time visitors, but to encourage others to come back and 'fly' the Eye again." Merlin's investment in improving the London Eye forms part of the company's wider commitment to the upgrade of its attractions portfolio, such as the £5m refurbishment of the Sea Life London Aquarium, which was completed in April.

The attractions operator is also eyeing up plans for the redevelopment of Madame Tussauds in 2010, as well as new investment for the London Dungeons.