Theme park 'happiness business' in China set to soar

China's theme park industry is entering a golden era, fueled by surging domestic demand and robust investment from both home and abroad.

A day before Legoland Shanghai Resort officially announced its July 5 opening, its mini-program crashed under overwhelming traffic, once again highlighting the tremendous potential of the "happiness business."

In 2023, China's amusement park economy reached nearly 60 billion yuan. By 2028, that figure is expected to exceed 110 billion yuan, solidifying China's position as a top destination for global theme park investment.

International giants are racing to expand. Shanghai Disneyland unveiled plans for its first Marvel-themed attraction and is building a third themed hotel. Hong Kong Disneyland will also enlarge its Marvel zone and introduce new Pixar-themed entertainment. Universal Beijing Resort is preparing for its second phase of development. Construction at Legoland Shenzhen is also speeding up. The world's largest Peppa Pig outdoor park is scheduled to open in Shanghai in 2027, while the Harry Potter Studio Tour in Shanghai is expected to open in the same year.

Domestic players are rising quickly too. Fantawild launched nine parks in just eight months last year. Pop Mart is redesigning two-thirds of its City Park in Beijing and preparing for the second phase next year. Nationwide, more than 50 new theme parks are in development or set to launch this year, spanning diverse themes from cinema and gaming to winter entertainment, marine worlds, forests and water-based attractions.

As of September 2023, the market penetration of theme parks in China was just 27 percent, far below the 68 percent average seen in developed countries. This significant disparity points to enormous room for growth. Over the next five years, China's theme park industry is projected to expand at a compound annual growth rate of 7.2 percent, with many cities aiming to turn these attractions into iconic local landmarks.

The impact of these parks extends far beyond ticket sales. They are also reshaping regional economies and redefining the business of fun. "China offers an excellent business environment," said Siegfried Boerst, managing director of Legoland Resorts in China. "Legoland Shanghai Resort has a series of world's first to fulfill the growing demand. All this will help boost the regional economy, create job opportunities and enhance Shanghai's competitiveness in the international tourism market."

As of October 2024, there were 385 theme parks operating on the Chinese mainland, with 87 classified as large or super-sized – each occupying over 600 mu (40 hectares) or backed by investments exceeding 1.5 billion yuan.