Theme Park in China
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
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
References: http://www.chinadaily.com.cn/business/2010-11/22/content_11587814.htm http://usatoday30.usatoday.com/news/world/story/2012-06-26/china-disney-theme-parks/56019074/1 http://www.chinadaily.com.cn/business/2012-05/22/content_15354029.htm http://www.china.org.cn/travel/2010-03/08/content_19554338.htm http://www.worldpropertychannel.com/asia-pacific-vacation-news/china-theme-parks-china-association-of-amusement-parks-walt-disney-china-shanghai-amusement-parks-walt-disney-shanghai-shanghai-disney-resort-yu-gui-garden-investment-group-6013.php http://www.chinahighlights.com/travelguide/amusement-parks/ http://www.bbc.co.uk/news/business-19162780