Chinese theme parks need to diversify their business models amid booming demand
The Chinese market is expected to be able to accommodate at least 10 additional theme parks of similar scale to Disneyland in the next 25-30 years.
International Association of Amusement Parks and Attractions (IAAPA) anticipates that Asia will become the largest market for theme parks worldwide in 15 years. Data show that China’s theme park production value grew at an average annual rate of 13.1% in the past five years and market demand will exceed one billion RMB in five years.
The Chinese market is expected to be able to accommodate at least 10 additional theme parks of similar scale to Disneyland in the next 25-30 years. This year alone, some 80 theme parks are under construction or will open.
Faced with a theme park boom, Universal Dinosaur Town operated by Changzhou-based Dragon City Tourism Holding Group in Jiangsu added Dino Water Town to thier parks last year. Featuring an open business concept, Dino Water Town integrates leisure with business and offers shopping, themed restaurants, innovative retail, experiential attractions, entertainment and resort hotels. Encompassing a Chinese Dinosaur Park, Dino Hot Springs, Dinosaur Town Theatre, Oak Bay Golf Resort Hotel and Dino Water Town, the theme park aims to become a one-stop tourism destination in China.
While Disneyland has diversified its sources of income, with 30% from admission,30% from merchandise sales and 40% from F&B and other expenditures, China’s theme parks tend to rely on admission, with almost 80% of revenue from ticket sales. Universal Dinosaur Town also relies heavily on admissions, generating 60% of its revenue from ticket sales and just 40% from other sources, despite its solid reputation for its products and services.
“We have always been dedicated to providing our customers with better products and service throughout the years. In the next step of our development, we will make capital investment in projects with good potential and replicate the Universal Dinosaur Town brand around China,” Dragon City Tourism Holding Group’s president Bo Shen said.(Translation by David)