China Theme Park Design and Construction
AECOM’s China Theme Park Pipeline Report estimated that China’s theme parks would welcome 230 million visitors to Chinese theme parks in 2020 and generate approximately $12 billion in ticket sales, up 367% compared to 2010 sales. While the pandemic reduced those numbers, the industry is on track for a significant surge because Chinese consumers have few foreign options. South China and East China are China’s key regions for top theme parks.
Challenges:
While U.S. exporters enjoy strong brand recognition and a reputation for high quality products in China, the following challenges often constrain U.S. exporters’ market access and development.
China’s travel entertainment sector is facing notable challenges due to the COVID-19 pandemic. The China Tourism Academy estimates that domestic tourist arrivals will decline by 43% in 2020, and domestic tourism revenue will decrease by 52%. However, the China Tourism Academy’s 2020 Domestic Tourism Development Report expects the domestic tourism industry to rebound in the second half of 2020. In early August, domestic air travel within China returned to 98% of travel levels from August of the previous year, according to the travel analytics company ForwardKeys.
Highly Competitive Market Environment: U.S. exporters compete in the China market against leading global manufacturers renowned for product quality and innovation. Winning sales often requires regular direct engagement with buyers to demonstrate unique performance value.
Complex Regulatory Environment - China’s Control Over Theme Park Development: In April 2018, the National Development and Reform Commission (NDRC) issued guidance on the development of theme parks to avoid excessive construction and mounting debt. Any project with an investment of over 50 billion yuan ($726 million) and an area of at least 330 acres is considered a “mega-theme park” and is subject to the most scrutiny by the ministry-level NDRC.
Best Prospects:
Themed Developers and Intellectual Property: As of August 2020, there were 160 theme parks in China according to AECOM, but only a minority are IP-branded parks. Domestic theme park developers are actively seeking their own IP to compete with established brands, creating an opportunity for companies that hold or can leverage IP-branded properties, as well as providers of turnkey IP-branded rides and solutions.
Although China’s domestic industry is evolving to serve growing market demand, Chinese developers still rely heavily on imported ride equipment from leading and trusted foreign ride manufacturers. Moreover, the demonstrated quality and safety of proven foreign brands is a key factor in the stability of this demand.
Themed attractions and amusement experiences are becoming increasingly dependent on new technology to drive the consumer experience. Specifically, theme parks are increasingly adopting 3D and 4D technology. In addition, entire parks will be designed for virtual reality and augmented reality experiences.
New Projects Throughout China: In 2018, the Hainan provincial government released the Hainan Tourism Development Master Plan (2017-2030) and is determined to build the island of Hainan into a pilot zone for the reform of China’s tourism industry. According to LvJie Media, there are 17 large scale theme parks either open or in the planning/construction phase in Hainan province.
| Project Name | Opening |
Investment Value (RMB) |
Scale | Investor/Operator |
| Atlantis Sanya Water Park | 2018 | 11 billion | 200,000 sqm | Fosun Group |
|
Sanya Dream Water Park, |
2018 | 600 million | 150,000 sqm | Kasen International Holdings Limited |
| Wet’n’Wild Haikou | 2018 | 453 million | 50,000 sqm | Guangxi Investment Group |
|
Haikou Changying Universal 100 Fantasy Paradise |
2018 | 38 billion | 400,000 sqm | Changchun Film Group |
|
Sanya Haichang Fantasy Town, Phase 1 |
2019 | 6.9 billion | 23.25 sqm | Haichang Ocean Park Holdings Ltd |
| Sunac Tourism City | 2020 | 50 billion | 4,447,333 sqm | Sunac Group |
|
Hainan R&F Ocean Paradise, Mytikas Waterpark |
2019 | 6.5 billion | 2,333,333 sqm | R&F Properties |
| Six Flags | 2017 | 6 billion | N/A | Six Flags, Riverside Group |
|
Haitang Bay Discovery Adventures Park |
2018 | N/A | N/A | Sunac Group, Discovery |
| Hello Kitty Theme Park | 2019 | 11 billion | N/A | Funde Group |
To learn more, contact us at: Designconstruction.China@trade.gov.
Resources:
Major Chinese players: · Fantawild Holding Inc. · OCT Limited · Songcheng Worldwide · Shimao Group · Dragon City Tourism Holding Group · Evergrande Group · Fosun International · Sunac Group · Chimelong Group
Key Organizations and Industries: · International Association of Amusement Parks and Attractions (IAAPA) · Themed Entertainment Association (TEA) · China Association of Amusement Parks and Attractions (CAAPA)
Major Trade Shows: ·
IAAPA Expo Asia
June 7-10, 2021, Macau, China · 2020 China (Beijing) International Amusement Equipment Expo
March 25-27, 2021, Beijing, China