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Theme parks mushroom under 'happiness economy'

Shanghai leads country in pioneering, upgrading profitable playgrounds

By WANG YING in Shanghai | CHINA DAILY | Updated: 2025-08-25 07:11
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Visitors take photos while enjoying their time at Shanghai Disneyland on Sept 17. [Photo provided to CHINA DAILY]

Driving forces

Shanghai's large and stable population forms a solid foundation for the sustainable operation of theme parks, experts said. By the end of 2024, Shanghai's permanent population was almost 25 million, with a large urban middle-income group known for its strong spending power and consistent consumption patterns.

"Whether it's families with children, young adults, or Generation Z, Shanghai residents have well-established habits and cultural preference for high-quality leisure experiences," said Lyu Mei, head of strategic consulting with JLL East China.

As the first stop in China for many international travelers, Shanghai welcomes a high volume of tourists annually, said Lyu. Demand from domestic and international visitors significantly enhances the operational efficiency and profit potential of theme parks.

"Shanghai's strong infrastructure and policy support have facilitated the development of theme parks. On the 'hardware front', the city provides top-tier resources in land supply, municipal infrastructure, and environmental capacity. On the 'software side', it boasts a solid foundation in cultural creativity, digital entertainment, and live performance production," Lyu said.

Shanghai's status as a global city keeps attracting world-class theme park brands. For international IPs, establishing a presence in Shanghai enables them to reach wider audiences in eastern China, and access the national market and broader Asia-Pacific region, she added.

Zhu Jianhui, senior director and head of retail research with JLL China, believes Shanghai's appeal to foreign investors is unmatched.

"Shanghai stands as China's leading retail consumption hub and the most developed city for flagship stores and first-launch projects. For foreign investors, choosing Shanghai as their initial entry point into the Chinese mainland market aligns strategically with their business goals," Zhu said.

Theme park development is not an isolated industry, as it drives urbanization and stimulates the growth of surrounding commercial, residential, and supporting sectors, Zhu added.

Alex Chen, regional managing director with CBRE Eastern China, said: "Since the opening of Legoland in Shanghai's Jinshan district, homestay bookings in Jinshan have surged sixfold compared with the same period last year."

Chen is confident the park will bring significant benefits to the area beyond increased hotel reservations.

"The park is expected to serve as a hub, linking together local cultural and tourism assets — such as the Shanghai Fengjing ancient town, the Jinshan City Beach, and the nearby tea gardens and historic temples — helping to create two — to three-day travel itineraries," Chen said.

At a tourism development conference in March, Shanghai rolled out a three-year action plan to build the nation's top inbound travel gateway, a premier urban tourism destination, and a model for cultural-tourism integration. The plan calls for building world-class landmarks and upgrading its cluster of world-class theme parks.

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