Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Stock Market FOMO Hits September CRASH Brick Wall - Dow Trend Forecast 2021 Review - 20th Sep 21
Two Huge, Overlooked Drains on Global Silver Supplies - 20th Sep 21
Gold gets hammered but Copper fails to seize the moment - 20th Sep 21
New arms race and nuclear risks could spell End to the Asian Century - 20th Sep 21
Stock Market FOMO Hits September Brick Wall - Dow Trend Forecast 2021 Review - 19th Sep 21
Dow Forecasting Neural Nets, Crossing the Rubicon With Three High Risk Chinese Tech Stocks - 18th Sep 21
If Post-1971 Monetary System Is Bad, Why Isn’t Gold Higher? - 18th Sep 21
Stock Market Shaking Off the Taper Blues - 18th Sep 21
So... This Happened! One Crypto Goes From "Little-Known" -to- "Top 10" in 6 Weeks - 18th Sep 21
Why a Financial Markets "Panic" May Be Just Around the Corner - 18th Sep 21
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21
Is This the "Kiss of Death" for the Stocks Bull Market? - 14th Sep 21
Where Are the Stock Market Fireworks? - 14th Sep 21
Play-To-Earn Cryptocurrency Games Gain More and Is Set to Expand - 14th Sep 21
The CashFX TAP Platform - Catering to Bull Investors and Bear Investors Alike - 14th Sep 21
Why every serious investor should be focused on blockchain technology - 13th Sep 21
SPX Base Projection Reached – End of the Line? - 13th Sep 21
There are diverse ways to finance the purchase of a car - 13th Sep 21
6 Tips For Wise Investment - 13th Sep 21 - Mark_Adan
Gold Price Back Below $1,800! - 10th Sep 21
The Inflation/Deflation debate wears on… - 10th Sep 21
Silver Price seen tracking Copper prices higher - 10th Sep 21
The Pitfalls of Not Using a Solicitor for Your Divorce - 10th Sep 21
Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
This Boom-Bust Cycle in US Home Ownership Should Give Home Shoppers Pause - 9th Sep 21
Stock Market September Smackdown Coming Next? - 9th Sep 21 - Monica_Kingsley
Crazy Crypto Markets How to Buy Bitcoin, Litecoin for Half Market Price and Sell for TRIPLE! - 8th Sep 21
Sun Sea and Sand UK Holidays 2021, Scarborough in VR 180 3D! - 8th Sep 21
Bitcoin BTC Price Detailed Trend Forecast Into End 2021 - 8th Sep 21
Hyper Growth Stocks - This billionaire is now using one of our top strategies - 8th Sep 21
6 common trading mistakes to avoid at all costs - 8th Sep 21
US Dollar Upswing, S&P 500 and Nasdaq Outlook - 7th Sep 21
Dovish Assassins of the USD Index - 7th Sep 21
Weak August Payrolls: Why We Should Care - 7th Sep 21
A Mixed Stock Market - Still - 6th Sep 21
Energy Metals Build Momentum; Silver & Platinum May Follow - 6th Sep 21
What‘s Not to Love About Crypto Market Fireworks - 6th Sep 21
Surging US Home Prices and Gold – What’s the Link? - 6th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

China’s theme park economy thriving, despite pandemic times 

Economics / China Economy Sep 02, 2021 - 06:54 PM GMT

By: Dan_Steinbock

Economics Against odds, theme parks are expanding in China, thanks to rising disposable income, investor confidence, and long-term opportunities.         

On September 1, Universal Beijing Resort, the largest of its kind in the world, will start its trial run. It is the most recent international chain in China’s thriving theme park industry.

Over 2008 to 2017, total theme park attendance increased at 13 percent annually. Today there are more than 200 theme parks in the Chinese mainland and their numbers continue to increase.

In an era of misguided global divisions, the impressive rise of theme parks in China shows the brighter promise of foreign investment and Sino-American cooperation.


First expansion of theme parks

in coastal megacities     

In the past, theme parks were still concentrated in coastal areas of South-East China, thanks to greater economic prosperity, advanced development, megacities of 10-20 million people, and relatively mild climate.

With every third major theme park in East China, the initial offerings of the parks were still relatively undifferentiated. Nonetheless, big-city parks relied mainly on international intellectual properties, according to infrastructure advisory AECOM.

The period was marked by the first expansion wave of the international theme parks, which climaxed with the opening of the Shanghai Disney Resort in June 2016. It was the dream of Disney chairman (then CEO) Bob Iger who had invested $5.5 billion and 17 years into the project.

During its first year of operation, Shanghai was already fueling a good chunk of Disney earnings growth. With over 11 million visitors, about half of which came from outside Shanghai, it was on pace to be the most profitable Disney Park globally.

Expansion signals foreign investors’ confidence

in Chinese business environment      

At the time, Disney’s impressive performance was carefully scrutinized by other international giants eager to join in China’s theme park economy, including the US Universal and the British Merlin Entertainment, famous for its Legoland Parks.

Today, the second wave of theme-park expansion is on its way. The capital invested for theme park projects in the first half of the 2020s could climb to $20 billion.

"Chinese people are confident in the country, confident in the controls," Tom Mehrmann, president of Universal Beijing Resort said a year ago. With the strong domestic travel industry, Universal saw a great opportunity, despite the pandemics. The Beijing Resort will be the company’s fifth park in the world. In turn, Merlin’s Legoland Shanghai is scheduled to open in early 2024, followed by Legoland Beijing.

These multi-billion-dollar investments signal foreign investors’ rising confidence in China’s business environment, its success in pandemic containment, and most importantly the progressive expansion of Chinese middle-income groups.

Despite international rivalry,

dominant local operators         

Internationally, Shanghai Disneyland enjoys great brand recognition. Yet, it had less than 6 percent of the market in 2018. The three dominant Chinese operators – OCT, Fantawild Holdings and Chimelong – held a combined 58 percent share of the market, according to Tianfeng Securities in March.

Last year, as in previous years, 12 new theme parks were launched in China, despite the pandemic, construction disruptions, and social distancing restrictions.

At the same time, the theme-park economy is spreading from the megacities in the coastal regions. Most new parks are centered in emerging first-tier cities, including Nanjing and Zhengzhou, which have a population of 8-10 million people.

As competition is intensifying, local brands tend to be more popular in smaller cities with increased use of storytelling and a focus on local conditions, history, and legends.

China’s theme park attendance could reach 70%-80% of pre-pandemic levels this year. However, analysts expect it to take another two years before the number of park goers returns to 2019 levels.

China’s theme-park economy a global bright spot,

for years to come 

In the global theme park industry, the long-term trend line is clear. While the parks are stagnating in the high-income West, the quest for new markets is pivoting to emerging Asia.

Before the pandemic, North American parks were advancing at a modest 1.0%. Europe was relatively flat, and so were Latin American parks. Instead, Asia’s top parks expanded at roughly 2.0%, whereas China’s performance was far stronger, with OCT, Chimelong, and Fantawild reporting high single- or double-digit increases.

In China, the per capita visitation to theme parks in China was 0.13 in 2017 and projected to rise to 0.16 by 2020. In the US, the per capita attendance is estimated at 0.65. While the level is higher in high-income economies, the difference suggests that the marketplace is far from saturated in the Chinese mainland.

In early 2021, President Xi Jinping declared the completion of the goal of building China into “a moderately prosperous society in all respects.”

As the middle-income group continues to expand in China and transportation systems improve, rising disposable income virtually ensures that demand for leisure and theme parks will continue to expand.

Dr. Dan Steinbock is the founder of Difference Group and has served at the India, China and America Institute (US), Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see http://www.differencegroup.net/  

© 2021 Copyright Dan Steinbock - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dan Steinbock Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in