Entertainment Economy: Why China’s Future Rides on Theme Parks

• China is investing heavily in theme parks like Legoland to boost domestic tourism and stimulate consumer spending, supported by government subsidies and infrastructure upgrades.
• With rising demand for local entertainment post-pandemic, branded attractions are seen as key to revitalising the economy and creating jobs across regions.

When China’s first Legoland opened in Shanghai in July 2025, thousands of local families flocked to the park on its debut weekend. The world’s largest Legoland (costing about $550m, roughly £410m) features 75 rides and themed zones – even an on-site hotel with pirate and castle rooms. Its launch marks part of a broader push to make China a global tourism destination and to give a fresh jolt to domestic spending. Beijing is counting on splashy attractions like Legoland Shanghai to get consumers, both Chinese and foreign, back on their feet after years of sluggish growth. 

China’s leaders have made domestic consumption and tourism a top priority. State media reports that authorities have urged more development of “cultural business” and tourism projects, pledging better services and support for foreign investors in entertainment. Officials have organised thousands of events and rolled out hundreds of millions of yuan in vouchers and subsidies to encourage travel and cultural spending.

From July to August 2025, local governments planned over 4,300 tourism activities – backed by some 570 million yuan (about £60m) in public subsidies – as part of a nationwide campaign to spur tourism. Even Reuters noted back in 2015 that “China [was] ramping up support for tourism, creating investment funds and building tourist attractions from campgrounds to theme parks in a bid to lift spending in its softening economy”. In line with this strategy, Jinshan District authorities in Shanghai helped finance new roads and subway links to Legoland, making it easier for visitors to get there (the park’s owner, UK-based Merlin Entertainments, built the park on land provided by the local government).

Western-branded parks target family tourists

China is leaning heavily on well-known global brands to lure visitors. Legoland Shanghai – run by Merlin – is one of several new Western-themed parks. Warner Bros. is building a Harry Potter experience in Shanghai (scheduled for 2027), and Hasbro’s cartoon star Peppa Pig is in the works as a giant amusement park. Even Shanghai Disneyland has unveiled a new “Spider-Man” attraction this year. These parks tap into huge fanbases of kids and adults alike. As the BBC reported, Legoland Shanghai drew in crowds “as it opened… marking another step in the country’s efforts to establish itself as a global travel destination”. With consumer spending still sluggish, Beijing’s hope is that “large attractions” like this will attract visitors from both China and abroad to help revive the world’s second-largest economy. 

China’s theme-park developers and local governments are channelling similar enthusiasm. Long-running Chinese parks have been record-breakers: Chimelong Ocean Kingdom in Zhuhai draws over 12 million visitors a year, and Universal Studios Beijing welcomed about 9 million in 2023. But competition is fierce. Chinese media reports that around 40% of domestic parks were still unprofitable as of late 2024. That is why strong brands and government backing are seen as vital. As one parent at Legoland observed, provinces across China are “putting a lot of effort into expanding their tourism industries” – from giant indoor snow parks in Harbin to cultural villages and dinosaur parks elsewhere – hoping to give families more reasons (and reasons to spend) to travel at home.

Domestic tourism fuels spending growth

The tourism boom in China is real. In the first quarter of 2025, domestic tourist trips exceeded 1.79 billion – up 26.4% from a year earlier – and total tourism spending surged 18.6% to 1.8 trillion yuan (around $210 billion, or about £170 billion). Even amid slower growth in the overall economy, Chinese families have been spending more on travel and entertainment. For example, Gulf Today reported that after Legoland opened, a father in Hangzhou said he “made very few trips abroad” post-pandemic and now takes his family to domestic theme parks “many times a year”. The government has spurred this trend with measures like travel vouchers and marketing campaigns: Beijing announced travel subsidies and urged local officials to heavily promote attractions on social media. 

This strategy extends beyond Western brands. The government has also supported home-grown parks and resorts. For instance, in Hainan province, officials are developing multiple mega-parks (even a universal resort and a Hello Kitty park) with generous land grants, tax breaks and infrastructure upgrades.

The result is better roads and high-speed rail routes bringing millions within easy reach of new parks. The idea is that building theme parks can stimulate entire local economies, creating jobs and boosting sales at hotels, restaurants and shops. Xinhua news noted that “the cultural and tourism industries are becoming important growth drivers” as China shifts to a more consumption-led economy.

Challenges remain in a competitive market

Of course, risks persist. China’s theme-park market is already crowded: established giants like Disney Shanghai and Universal Beijing have had great success, but dozens of smaller parks compete for attention. Not all will thrive – indeed, many rely on local government funding to survive.

As one industry analyst pointed out, many parks still struggle to make money, even with rising visitor numbers, because of high operating costs and fierce competition. Meanwhile, attractions must constantly innovate to keep families coming back. U.S. trade officials have warned that China strictly controls new park approvals to avoid an oversupply, requiring mega-projects (over ¥50 billion in investment) to meet tough planning rules. 

Despite these hurdles, policymakers are betting that the net effect will be positive. By both entertaining consumers and keeping them at home, big new parks should help grease the wheels of the wider economy. Already, analysts estimate only about 27% of Chinese adults have ever been to a theme park, compared to 68% in the U.S., suggesting room to grow. If trends continue – with Chinese vacationers spending record sums on local trips and attractions – then theme parks will have helped turn tourism into a key driver of China’s consumption and growth.