WTM LONDON 2016 – LONDON – REPORT: As Chinese disposable incomes rise, leisure attractions are seeing the benefits. Aided by high speed rail links and a proposed increase in public holidays, international players are taking note of the opportunities.
WTM LONDON 2016 – LONDON – REPORT: Asia is showing solid growth for most of the key categories, with lodging the only category struggling to maintain increases of more than 5% each year, as consumers shifting to budget accommodation suppresses value growth, reveals the WTM Global Trends Report 2016, in association with Euromonitor International, released on 8th November at World Travel Market London.
Intermediaries are performing extremely well, with Asian consumers increasingly relying on them for all areas of travel purchasing.
Arrivals across the region are hugely positive with growth of 9% expected for 2016, resulting in inbound trips to China exceeding 62 million.
Chinese Theme Park Boom
According to the International Association of Amusement Parks & Attractions (IAAPA), China is seeing a theme park boom, with 59 parks planned or under construction.
In 2013, the Chinese government lifted a ban on theme park approval, enabling parks under US$800 million to be approved at the provincial level, encouraging investors.
According to Euromonitor International, the value of theme park sales in China is predicted to reach nearly US$12 billion by 2020, with visitor numbers surpassing 330 million.
Disneyland Shanghai opened in June 2016, catering to the Chinese consumer, with over 80% of rides unique to the park and costing US$5.5 billion.
Local rival, Dalian Wanda Group opened US$3 billion Nanchang Wanda City, with a greater Chinese cultural focus and ticket prices half those of Disney.
Lewa Happy World opened in Xian in 2015, and a second Wanda City is scheduled to open in Hefei in the last couple of months of 2016.
International Players Take Note
As Chinese disposable incomes rise, leisure attractions are seeing the benefits. Aided by high speed rail links and a proposed increase in public holidays, international players are taking note of the opportunities.
International players Disney and Universal Studios Inc. have focused their attention on China’s wealthy coastal regions with local developers looking more to inland cities.
The first international theme park for Western China, Chongqing Riverside-Six Flags Theme Town, will open in 2019, located near a large population but limited attractions.
Local theme parks tend to operate a mixed tourism and property business model, with revenues from hotels, shops and apartments often more profitable than ticket sales.
Other Asian countries are also enjoying success with the opening of 20th Century Fox World in Malaysia, and Lotte World in South Korea being popular with Chinese visitors.
Thrills and Spills
Wanda Group has taken the bold step of launching EuropaCity with Immochan, a US$3 billion project incorporating a theme park and shopping mall 10km outside Paris.
The mix of shopping and attractions is a hugely attractive combination for a mix of nationalities and ages, and is likely to prove very successful on opening in 2021.
A further two overseas parks are planned by Wanda but locations have yet to be fixed.
Recent queries were raised about the closure of Wanda Park in Wuhan for early refurbishment and the appearance of fake Disney characters in a Nanchang park. It is questionable whether the Wanda offer will appeal to Western consumers.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
