The amusement park industry in China is witnessing unprecedented growth, a trend fueled by the pandemic-induced shift towards local travel and the vast potential of an underpenetrated market. With only 27% of China's population having visited a theme park, the opportunity to cater to the remaining 1.4 billion people is immense. McKinsey projects the market, valued at RMB 40 billion in 2019, to surpass RMB 90 billion by 2025.
Golden Heaven Group Holdings Ltd. (NASDAQ: GDHG) is at the forefront of this expansion. The company, which operates six amusement parks across southern China, reported a 28.4% year-over-year increase in attendance during the recent Chinese Spring Festival holiday, setting a new record with 100,362 visitors. These parks, accessible to approximately 21 million people, offer a wide range of attractions, from thrilling rides to family-friendly activities and high-tech facilities.
Looking ahead to 2024, Golden Heaven aims to enhance operational efficiency and invest in technology to improve visitor experiences. The company is already expanding its footprint, with the recent trial operation of Seven Rainbow Park in Guizhou Province. This 15,000 square-meter park features attractions like a Ferris wheel and a zoo, marking a step towards establishing entertainment hubs in local areas.
Golden Heaven is also leveraging the capital markets and forming strategic partnerships to broaden its presence. A notable deal with PT BESTAR JAYA in Indonesia involves developing and managing 30 to 50 indoor amusement parks in major shopping centers. Additionally, the company is securing recurring revenue through lease agreements, such as those with Nanping City Dacheng Culture Communication Co., Ltd. and Zigong City Dragon Culture & Arts Co. Ltd., for hosting various events and activities.
The shift in travel preferences among Chinese consumers, favoring local entertainment options like amusement parks, presents a lucrative opportunity for companies like Golden Heaven. With strategic expansions and investments, the company is well-positioned to capitalize on this growing demand.
