The amusement park industry in China is witnessing unprecedented growth, driven by a shift in travel preferences and a vast untapped market. With only 27% of China's population having visited a theme park, the potential for expansion is immense. The market, valued at RMB 40 billion in 2019, is projected by McKinsey to exceed RMB 90 billion by 2025. This growth is further fueled by the pandemic-induced preference for local travel, making amusement parks a preferred entertainment choice.
Golden Heaven Group Holdings Ltd. (NASDAQ: GDHG), a key player in this sector, operates six amusement parks across southern China, accessible to approximately 21 million people. The company 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. Golden Heaven's parks, spanning 426,560 square meters, offer a variety of attractions, including rides, water parks, and high-tech facilities, catering to families and thrill-seekers alike.
Looking ahead to 2024, Golden Heaven aims to enhance operational efficiency and invest in technology to improve visitor experiences. The company is already expanding, with the recent opening of Seven Rainbow Park in Anshun City, Guizhou Province, which features a Ferris wheel, luxury carousel, and other attractions. CEO and Chairman Qiong Jin highlighted the park's success during its trial operation, viewing it as a model for future projects.
Golden Heaven is also leveraging the capital markets and forming strategic partnerships to broaden its industry presence. A notable deal with PT BESTAR JAYA involves developing and managing 30 to 50 indoor amusement parks in Indonesia. Additionally, the company is securing recurring revenue through lease agreements with cultural companies in China, further solidifying its market position.
The trend towards local entertainment and leisure activities presents a lucrative opportunity for Golden Heaven and the broader amusement park industry in China. As the company continues to expand and innovate, it is well-positioned to capitalize on the growing demand for domestic entertainment options.
