Theme Park in China

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Amusement Park in China
Introduction
There are a number of theme parks in China. Some of them are well designed and managed. Some are fairylands for the children, which have great fun playing in the fairy tale castles and the animal kingdoms with cartoon characters; The youngsters would like to experience the thrilled and exciting amusement ride. Meanwhile, the elderly like to take pleasure in the folk custom. However, though the market is believed to be big and potential, about 70% of the China’s 2500 amusement parks are losing money. Whom and why will run non-profitable business?

Unlike residential developments, the restrictions imposed by the Chinese government to cool the "hot" property market do not apply to projects categorized as cultural or entertainment purposes. The loophole allows developers to buy land from the government often at a relatively low price to build a theme park and then erect adjoining apartments and hotels. To plug the loophole, Beijing authorities banned the construction of new theme parks over a certain size in August 2011. This measurement canceled many projects in the capital but not deterred most developers from continuing with their amusement park development plans. Actually, many investors do not concern on losing money when operating theme parks, since the sales of tickets and food make up only a very small percentage of their profits, a China Daily reports said. Furthermore, parks require a lot of funding and have high operating costs, so it can take a longer period of times for investors to regain their money. According to China Daily, many theme parks built in the early 2000s have been bankrupted, with the properties failing to sell at dozens of auctions over the past seven years. Amusement Park Industry Trend

Focusing on the theme park business, according to Chris Yoshii, an analyst for AECOM, told USA Today recently that almost a third of China's 2,500-plus theme parks have opened within the past two years, with the total number expected to surpass that of the U.S. by 2020. During the five years through 2012, the Amusement Park industry experienced rapid development, growing 14.4% per year on average to an estimated $2.3 billion in 2012. China's economy developed rapidly over this period, and household disposable income levels improved dramatically. As a result, the number of people paying for leisure activities increased significantly, resulting in strong visitor growth for this industry. The top four operators in China account for about 13.6% of total revenue in 2012, and this share is expected to increase, as visitor numbers and gate receipts for the industry's largest amusement parks increase steadily. According to AECOM, a Hong Kong tourism consulting firm, theme parks in Asia sold a combined 103.3 million tickets last year, one-third of the total in the world and second only to those sold in North America (127 million). Also, fewer new players will enter the industry due to its high and increasing barriers to entry. As a result, analysts are optimistic in this industry. It is forecasted that in the next five years, industry revenue is forecast to increase at an average annualized rate of 16.7%. The increasing popularity of amusement parks was another industry driver. Since World Carnival entered the Chinese market in 2004, visiting amusement parks has become a popular way to spend time. The number of international visitors also rose significantly over the past five years, as China's popularity as a tourist destination has improved. According to 5u588.com, a Chinese tourism-industry information website, 70 tourism real estate projects have already been signed this year, with a total investment of 260 billion Yuan. That figure is expected to surpass 1 trillion Yuan by December 2012. Current Outstanding Theme Parks

According to China Highlights website, there are top 7 theme parks in China. Here are the list and its brief notes: 1. Hong Kong Disneyland Park
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