Legoland theme park in Shanghai opens this week as the largest in the world in its segment. However, attracting the public that Disneyland has won when launched in 2016 will be a challenge for operator Merlin Entertainments, in front of the most currently contained and saturated Chinese consumer market.
The construction of the project began when Chinese tourism recovered after the pandemic and the park tickets exhausted during important holidays. Today, however, leisure destinations record less collection.
In the recent three-day public holiday of the dragon boat festival, the average spending on trip fell 2.2% over the previous year to 359 yuans (about $ 50), although this data refers to all trips and not just thematic parks.
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“The number of visitors in major foreign parks in China remained stable or grew slightly by 2024, but revenue with secondary consumption within the parks has decreased,” said Lin Huanjie, director of China’s Thematic Park Studies Institute.
According to Morgan Stanley estimated, Disneyland from Shanghai, the most profitable park in the country, will have revenue from $ 1.5 billion to $ 1.4 billion this year.
With the theme parks is no longer new and new attractions expected to open, the competition by visitors should intensify. Warner Bros. Discovery plans to open a tour of Harry Potter studio in Shanghai in 2027, in partnership with Jinjiang International Group, while Peppa Pig’s first outdoor park in Asia should also open in the city the same year.
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Meanwhile, the construction of the Legoland Resort in Shenzhen advances, with no official date for completion.
Although tourists continue to visit parks based on foreign intellectual properties such as Disney and Universal Studios, domestic attractions have been impacted. The number of visitors in large Chinese parks fell in 2024 compared to the previous year, due to economic pressures and unstable climate, according to the institute’s report. Almost a quarter of the great parks operated at the loss.
Vivian Lian, a housewife and a fan of theme parks in Shanghai, said she will only visit Nova Legoland if she gets discount tickets. Among those who feel the effects of China’s economic slowdown, it has established strict boundaries for parks visits – a minimum feed value is acceptable, but buying memories is out of question.
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“The frequency in China is still good, but the per capita expense is not so high,” said Hugh Johnston, CEO of Walt Disney Co., in a results conference call in May. “Consumers are squeezing their belt in this market.”
In recent years, Disney has launched two thematic attractions – Frozen and Zootopia – aiming at increasing domestic demand for tourism. Disneyland opened in 2016, with the California entertainment company holding 43% of the project and the rest of the state consortium Shanghai Shendi Group Co.
Side effects
For local governments and business partners, the main attraction of investing in thematic parks is the indirect effects, such as the impulse to economic activity and real estate appreciation. According to Lin calculations, every 1 yuan of revenue can generate between 12 and 15 yuans in related sectors, such as hotel, restaurants and transportation, in first -level cities or provincial capitals.
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However, the incentive for opening large parks has generated concerns about excessive supply. Although parks do not disclose operational data, Lin noted that parks revenue in China fell on average 15% to 20% after an annual growth of 71.84% in 2023. Visionland in Liuzhou, Guangxi province, suspended operations by 2024 after seven years. Approval for new large parks was restricted nationally, according to Lin.
Faced with more cautious consumers, parks offer promotions to attract visitors such as cheaper tickets and food discounts.
For Jessica Zhang, Shanghai insurance broker, who visited Legoland with her daughter and husband in June, before the official inauguration, the experience was pleasant and she thinks about returning. “It would be better if the tickets were cheaper,” he said.
© 2025 Bloomberg L.P.
