China’s inaugural Legoland theme park recently opened its doors in Shanghai, drawing considerable tourist interest and underscoring the nation’s ambition to become a prominent global travel destination.
This is the latest in a series of amusement park launches by Western brands in China, with forthcoming projects from Warner Brothers’ Harry Potter and Hasbro’s Peppa Pig also anticipated.
Amidst a climate of subdued consumer spending, Beijing is banking on major attractions like Legoland to galvanize both domestic and international tourism, thereby stimulating the world’s second-largest economy.
Theme park developers are attracted by local government investment, yet face a competitive landscape dominated by established names like Disney and Universal Studios.
Legoland Shanghai, a $550 million venture, represents the largest park operated by UK-based Merlin Entertainments.
The park boasts 75 rides spread across eight distinct areas, featuring structures meticulously crafted from millions of plastic bricks, including a miniature replica of Shanghai’s iconic skyline.
Its hotel can accommodate hundreds of guests in themed rooms inspired by elements such as pirates and castles.
The park’s inauguration followed years of collaboration between Merlin, Lego’s parent company, and local authorities, with hopes high that it will attract both domestic visitors and international tourists.
During the launch ceremony, a local official lauded Legoland Shanghai as a vital stimulus for the district’s economy, anticipating job creation and support for local retailers.
State-backed entities have also supported other projects, with a government-controlled firm holding a majority stake in Disneyland Shanghai.
Xiaofeng Zeng, vice president at Niko Partners, a consumer market research firm, noted that Legoland and similar branded parks are strategically positioned to capitalize on the extensive fan bases of children and young adults, especially within China’s vast market.
Despite recent softness in China’s domestic spending, its 1.4 billion population represents a significant potential consumer base.
Mr. Zeng added that recent studies indicate Chinese parents are increasingly prioritizing spending on their children, even amid broader declines in overall consumer expenditure.
While current spending trends in China may be subdued, the nation’s emphasis on boosting local consumption makes it an attractive market for park developers.
Tourism was highlighted as a key sector in China’s latest five-year economic plan, which included provisions for increased investment in resorts and theme parks.
Nandini Roy, a senior research analyst at Future Market Insights, explained that Chinese authorities are incentivizing investment through tax breaks and financial assistance for new attractions.
For instance, the state has supported the Legoland park with the development of new public transportation links and major roadways.
Authorities also allocated 570 million yuan (£59m; $80m) in subsidies through vouchers and special offers as part of a nationwide initiative to encourage domestic tourism.
“These measures reduce out-of-pocket expenses for families and indirectly benefit parks by driving increased foot traffic,” Ms. Nandini stated.
Gu Qingyang, an economist from the National University of Singapore, emphasized that theme parks not only attract investors and tourists but also stimulate job creation.
He added that the presence of international brands like Lego can enhance China’s image as an open and globally connected nation.
However, Legoland and similar attractions face the challenge of differentiating themselves in a market already home to approximately 400 theme parks.
Influencer Artem Kapnin, who previewed Legoland Shanghai in June, acknowledged the park’s efforts to cater to Chinese preferences but noted a lack of the immersive atmosphere found at Disneyland.
“I personally prefer Disneyland due to the overall atmosphere, the characters, and the impressive firework displays,” stated Mr. Kapnin, a student based in Shanghai.
Despite current softness in consumer spending, Prof. Gu suggests investors are focusing on China’s long-term economic potential.
“It’s essential to recognize that the construction of large-scale theme parks often requires nearly a decade of planning and execution, necessitating a long-term outlook.”
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