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Growing theme park competition benefits consumers(2)

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2016-06-02 09:28Global Times Editor: Li Yan

No boom forthcoming

In fact, more than 80 percent of the domestic theme parks are running at a deficit, Zhu said. The problem is that most theme parks have similar attractions.

Some say Disney's entrance into the mainland market has caused a boom in theme park construction.

According to a report released in 2013 by global engineering firm AECOM, 59 theme parks and five water parks are slated to open in China by the end of 2020.

But compared with sectors such the Internet and manufacturing, "theme parks only attract a small group of investors," said Xiong Gang, chairman and founding partner of ASB Ventures (China), a venture capital company.

"It's not easy for theme parks to immediately turn a high profit by depending only on admission ticket sales," Xiong told the Global Times Monday.

He noted that most theme parks count on other businesses such as hotels, souvenirs and providing services for their customers to boost profits.

"In the short term, there will not be a large amount of investment in theme parks in China," Xiong said, noting that Disney will also be cautious about expanding further in China.

Still competitive

Disney will likely face some difficulties in China, but it does have a market in the country.

"I'm not a big fan of Mickey Mouse cartoons, I came to the resort because I was curious," Wang Dan, a 32-year-old Shanghai resident, told the Global Times on Monday.

"We went to the resort because I hoped my 4-year-old son would enjoy the place. Also, my husband and I have both been fans of Mickey Mouse cartoons since we were children," Jin Jia, a 34-year-old office worker who lives in Shanghai, told the Global Times on Tuesday.

Shanghai Disney Resort has sold out admission tickets for the first two weeks after the theme park's grand opening, the Xinhua News Agency reported in May.

Admission costs 370 yuan ($56.22) per person, or 499 yuan per person during the peak season.

The resort's hotels have almost been completely booked for the first two weeks after the park is scheduled to open, according to a report by ctrip.com, a major online travel service.

Both Zhu and Xiong are optimistic about Disney's prospects in China.

Disney is a company that focuses on its main business with continuous creativity to complete its cartoon images, improve its entertainment projects and enhance its management, so the company has good long-term prospects in China, Xiong said.

"Tourists are no longer only satisfied with traditional entertainment projects. Large theme parks still need to focus on brand building and differentiate their consumer groups with different market strategies," Zhu said.

Large domestic theme parks have an easier time getting access to support from local governments, which believe theme parks can boost the local economy and drive tourists to other local attractions, Zhu noted.

But small theme parks need to focus on specific groups of consumers, Zhu said. For instance, in second- and third-tier cities, parks that are geared toward children and reasonably priced are still popular.

  

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