appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Luna Sun

Mandy Zuo

As temperatures soared to a sweltering 39°C, thousands of families still lined up for the launch of China’s first Legoland resort, undeterred by the heatwave.
The attraction became an instant hit – not just for children craving plastic-brick adventures, but for policymakers desperate to find the next big demand driver and jolt a weary consumer market back to life.
With families eager for quality experiences during the summer holidays, the spotlight is back on leisure spending – one of the few bright spots in a faltering consumer landscape, where retail sales have slumped and stimulus measures have lost steam.
The fanfare surrounding Legoland Shanghai Resort, which opened its doors on July 5, coincides with a new wave of investments in the sector across China.
As the largest Legoland in the world, it adds to over 4,400 attractions and amusement facilities nationwide – a figure forecast to grow at an annual rate of 19 per cent over the next three years, according to IAAPA, the global association for the theme park industry.
“What we see is that one yuan of operating revenue has an economic impact of 3.8 yuan in the local economy,” said Jakob Wahl, CEO of IAAPA, during the IAAPA Expo Asia in Shanghai held on June 30-July 3.
“Attractions are a driver for the economy wherever they are.”
For businesses upstream and downstream – from construction and retail to accommodation and transport – the ripple effect could be even greater, double or even triple that amount, he added.

A string of new theme parks is also in the pipeline. Legoland Shenzhen, set to become the world’s largest, is already under construction. iQiyi Land will open later this year and will feature immersive IP zones, while Shanghai will host a Harry Potter Studio Tour and the world’s largest Peppa Pig park by 2027.
Shanghai Disneyland, which opened in 2016, is also adding a Spider-Man zone, while Universal Beijing is undergoing a second phase of expansion following its launch in 2021.
Together, these projects reflect a broader push to anchor family spending and tourism through branded, experience-driven destinations – even as consumer sentiment remains cautious.
China has made household spending a central policy priority this year, and its sweeping trade-in programme for cars, appliances and electronics has delivered a short-term boost.
Sales of consumer durables have picked up, offering a rare bright spot in otherwise muted economic growth. But the gains have done little to lift broader household sentiment. With job security uncertain and income growth stagnating, many Chinese consumers remain cautious, opting to save rather than spend.
This anxiety-driven thriftiness is proving harder to shake, even as policymakers seek new ways to stimulate domestic demand. While the trade-in scheme moves products off shelves, it does little to address the confidence deficit that continues to weigh on discretionary, experience-based spending.
“Legoland is a new thing for China, and it can help unlock fresh consumer demand – especially in the family and parent-child segment,” said Liu Jianbin, COO of Sunriver Tourism.
“In a sluggish consumption environment, parks like these can play a meaningful role, even becoming a sustained lever for household demand,” he pointed out. But he also cautioned that their overall impact would depend on whether the parks can drive ancillary spending and encourage repeat visits.
Despite talk of a ‘consumption downgrade’, people are still willing to pay for quality experiences
Wang Ke, senior tourism analyst at Analysys
As of October 2024, China had a total of 385 theme parks, including 87 large and supersized parks, with 59 per cent of them profitable, according to a report published last year by the Institute for Theme Park Studies in China.
The 86 large and supersized theme parks surveyed – all of which opened before January 2023 – recorded strong growth in 2023, welcoming over 130 million visitors and generating total revenue of 30.4 billion yuan (US$4.24 billion), marking year-on-year increases of 71.8 per cent in foot traffic and 97.9 per cent in revenue.
However, the sector still faces significant challenges, with 22 per cent of the 385 parks losing money, as high investment costs and steep ticket prices remain significant hurdles.
According to the institute, performance has declined notably compared to 2023, with a significant drop in visitor numbers as of October 2024.
Lin Huanjie, director of the China Theme Park Research Institute, told state media last year that at least 20 large-scale theme parks were in the pipeline across the country, many covering more than 40 hectares (nearly 100 acres). As for local governments, theme parks promise considerable economic and social benefits, and many cities hope to make them a calling card of urban development.
The recent wave of theme park openings aligns with the evolution of Chinese consumption, said Wang Ke, a senior tourism analyst at consulting firm Analysys. “Despite talk of a ‘consumption downgrade’, people are still willing to pay for quality experiences,” Wang noted.
“That said, spending habits remain cautious overall. Many parks are turning to aggressive discounts and promotions to bring in visitors.”

For the first two months into its grand opening, for instance, Legoland Shanghai is offering a 50 per cent discount on all food and beverages.
Legoland would undoubtedly boost tourism in Shanghai to some extent, Wang said, as parents are still willing to splurge on their children despite broader weak spending. But its impact would likely be limited compared to a heavyweight like Disneyland, as most of the attractions are geared towards younger children or LEGO fans – “so the appeal is narrower”.
Indeed, after the initial buzz and crowds in the opening weeks, online comments began to highlight one of Legoland’s unexpected “strengths” – shorter lines and fewer visitors. While framed as a perk, the subtext hints at subdued foot traffic and raises questions about the park’s longer-term commercial appeal.
Chen, who declined to give her full name, was among the thousands of visitors at Legoland Shanghai’s grand opening. A theme park enthusiast, she and her family had secured tickets a month in advance – and were pleasantly surprised to find food and beverages offered at half price.
“Legoland feels more suited for younger kids, it’s really an immersive experience for them,” Chen said, pointing to the summer splash zone where kids can play in the water all day as well as brick-building areas.
“It’s a different kind of fun compared to Disneyland, which is more about IP-driven immersion.”
She did acknowledge, however, that the broader economy had made people more cautious.
“I still try to find balance. I have cut back in some areas, but I’ll still take my family to a theme park once or twice a year – just to enjoy the experience.”

Theme parks have become strategic tools for what Wahl calls “destination development”, turning underutilised land into tourist magnets.
“When you have a park, you see how hotels are being built around it, how restaurants grow. That drives the economy and tourism,” he said. “Attractions are often the reason why people travel.”
While Chinese consumers are spending more cautiously this year, Massimiliano Freddi, IAAPA’s 2025 Chair of the Board, said the breadth of the domestic market has made it resilient.
“This diverse market integrates so many different levels of attractions… and helps in moments of consumption contraction,” he said.
Freddi also pointed to the country’s ability to adapt. “China is very good at diversifying the size and the price of attractions. That satisfies the need for getting together – even when people are spending less.”
But despite growing demand, local brands face challenges, particularly around monetisation and intellectual property.
Many in China still heavily rely on ticket revenue, Wahl noted, compared to other regions where food, merchandise and events like Halloween or flower festivals are huge revenue drivers, encouraging repeat visits and higher per capita spending.
Still, China has shown it can create home-grown success stories, Wahl said, pointing to the rise of Pop Mart’s Labubu as an example of a local IP going global.

“The Chinese entertainment and attraction market is still fairly young,” Wahl said, noting that the US and Europe had a head start of several decades.
“With the continued growth of the middle class, there’s an increased need for leisure activities.”
China’s domestic tourism industry continued its strong recovery in 2024, with both traveller numbers and spending experiencing solid growth, according to data from the Ministry of Culture and Tourism.
Total trips taken rose by nearly 15 per cent year-on-year, while overall tourism spending jumped by over 17 per cent. Per-trip spending by domestic tourists also hit a record high, rising slightly by 2 per cent from the previous year to 1,024 yuan (US$143) per person per trip, a sign of growing demand for leisure experiences.
China’s summer travel season is off to a strong start, with bookings surging as students and families drive demand.
According to travel platform Tuniu, summer group tour bookings have jumped by more than 35 per cent compared to the same period last year, with outbound travel bookings soaring by 60 per cent.
Data from Spring Tour also shows a nearly 30 per cent rise in total summer travel reservations year-on-year, with outbound trips leading the trend – up nearly 50 per cent from 2024.
The travel peak began in mid-July and is expected to last through mid-August.


Perfect Diary owner Yatsen doubles down on skincare, R&D after business overhaul

Pets and personal touches: how China’s luxury hotel market is changing

‘New normal’: China to see slower loan growth amid sluggish consumption, investment

China’s economy under further pressure in August, as analysts expect rebound next quarter

China consumption

From Legoland to Disney: how China is using theme parks to fuel consumer spending

Illustration: Lau Ka-kuen

People attend the grand opening ceremony of the Legoland Shanghai Resort, the world’s largest Legoland theme park, in Shanghai on July 5. Photo: AFP

Fireworks explode over the Enchanted Storybook Castle at the Shanghai Disney Resort on New Year’s Day on January 1, 2024. Photo: Getty Images

Children play with lego at Legoland Shanghai Resort, the world’s largest Legoland, during the theme park’s grand opening in Shanghai on July 5. Photo: AFP

As temperatures soared to a sweltering 39°C, thousands of families still visited China’s first Legoland resort for its launch on July 5. Photo: SCMP/Luna Sun

China’s domestic hurdles

Illustration: Lau Ka-kuen


China urged to curb ‘neijuan’ by boosting domestic consumption, innovation-led growth

Liu Lijie, a food delivery rider from Ele.me eats his meal at Yushiji restaurant in Beijing on March 18, 2025. Photo: AP

China pledges to build megaprojects despite pivot to domestic consumption

Yuan Da, secretary general of the National Development and Reform Commission (NDRC), answers questions from the media at a press conference on China’s 14th Five-Year Plan period (2021-2025), in Beijing, on July 9, 2025. Photo: Xinhua/Li Xin

China’s theme park capital to welcome Spider-Man, Harry Potter in tourist economy boon

Fireworks explode over the Enchanted Storybook Castle at the Shanghai Disney Resort on New Year’s Day on January 1, 2024 in Shanghai, China. Photo: VCG via Getty Images

A Disney fan wearing Hanfu dress poses for photos in Shanghai Disneyland on May 26, 2023. Photo: Xiaohongshu

Will new Harry Potter park spell success for Shanghai as it tries to enchant tourists?

Visitors wearing costumes take selfies at the opening of a Harry Potter-themed park in Japan in 2023. Photo: EPA-EFE

People gather in 2023 at the opening of a Harry Potter-themed park in Tokyo, Japan. Photo: EPA-EFE

Shanghai’s Jinjiang Action Park, which opened in 1984 and spans 103,000 square metres, will be closed until 2027 as it undergoes renovations. Photo: Handout

Economy

China Economy

News

China

Knowledge

China Macro Economy

Topics

Business

Companies

Lifestyle

Travel & Leisure

People & Culture

Stagnant wages, job uncertainty and rising living costs have not stopped families from treating their children to feel-good outings, analysts say


Stagnant wages, job uncertainty and rising living costs have not stopped families from treating their children to feel-good outings, analysts say.


From Legoland to Disney: how China is using theme parks to fuel consumer spending

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Stagnant wages, job uncertainty and rising living costs have not stopped families from treating their children to feel-good outings, analysts say

Stagnant wages, job uncertainty and rising living costs have not stopped families from treating their children to feel-good outings, analysts say