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China Theme Park Industry Development Model and Investment Strategy Planning Report, 2013-2017

China Theme Park Industry Development Model and Investment Strategy Planning Report, 2013-2017

Last Update:2014-05-01

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As one of the sub-sectors of tourism, China theme park industry started to develop in 1980s, with more than 20 years of development, it has begun to take shape. At present, there are various types of theme parks in China. There are not only many man-made amusement parks, but also a variety of natural and cultural-based parks, which all cover science, history, culture, biology, entertainment and other kinds of categories. But what we need to concern is China’s loss of theme parks has reached around 70%. There are only 10% of them realizing actual profitability. And only 1/3 of projects can gain returns at last. There is 150 billion Yuan funds tied up in the theme park. Although ticket sale is still the biggest source of income for each theme park, the short chain and single profitability model needs to be improved.

Domestic theme parks are mainly concentrated in the economically developed areas, making the industry competition fiercer and fiercer in this industry. In market competition, on the basis of foreign successful experiential learning and combining with the development characteristics of domestic tourism, parts of domestic theme parks enterprises construct a batch of theme parks with distinctive themes and clear positioning, and generate a group of well-known brands, which have remarkably advantages with their radiation scope. In addition, there is gap between China’s theme parks and the international theme parks in the aspects of theme design, capital strength, operational management, etc. There are no absolutely advantageous and monopolized theme parks in China. Those theme park enterprises with strong capital strength and brand advantage can access to further enlargement through acquisition and merger, or chain operation.

In accordance with the world’s tourism economy law, When the per capita national income reaches 2,500-3,000 US dollars, the tourism products focus on sightseeing tour; when it reaches 3,500-4,000 US dollars, the tourism products focus on vacation trip, and it reaches 5,000 US dollars, the tourism products focus on high-end tour. In 2011, China per capital GDP reached 5,414, showing that leisure vocation will gradually replace sightseeing tour to occupy the market subject position. Analysts consider, with the uprising of China’s economy and the acceleration of urbanization, theme park, and other new types of leisure tour products will gradually become the major consumption subjects of leisure entertainment. According to incomplete statistics, the market demand for theme parks in China will exceed 10 billion Yuan annually in the next 5 years; China is able to hold 10 or even more theme parks, like Disney in the next 25-30 years.

On August 5th 2011, the Ministry of Finance, the Propaganda Department of the Central Committee of the CPC, and the Ministry of Education released a document to stop approving theme parks. Tens of billions or even hundreds of billions capital were affected, and many projects in large-sized enterprises were also affected. In the long-term, it’s expected to introduce some relevant theme parks development documents, to further regulate the development of the industry. China theme park industry has huge market potentials. At least, there are 100 million person-time that haven’t developed. According to the “Twelfth Five-year” Plan for Tourism Industry, by 2015, the domestic tourist will reach 3.3 billion person-time, with an annual increase of 10%; and the number of inbound overnight tourists will reach 90 million person-time, with an annual increase of 8%. Globally, the theme park takes up a considerable proportion in the whole tourism industry. In the next few years, China theme park industry has great potential for development, with bright prospects.

Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Theme Park Industry

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