There was an international, carnival atmosphere at the 15th edition of the China Amusement Machines and Facilities Exhibition 2007. Tens of thousands of visitors from throughout China, the Asian region and other foreign countries gathered in Beijing. Organised by the China Association of Amusement Parks and Attractions (CAAPA), the show for the amusement park trade saw delegates gathering from Japan, Canada, Russia, Spain, South Africa, Cuba, South Korea, Yemen, Singapore, Israel and Taiwan.
Since 2002, CAAPA has organised seven large-scale exhibitions in Beijing and Shanghai, aimed at promoting development and providing a platform to foster cooperation between the operators of amusement parks and manufacturers of equipment.
CAAPA president Liu Jingwang said the amusement equipment industry has become mature in China. Specialised exhibitions like the recent Beijing show provide an opportunity for technology exchange between domestic and overseas industry players, which in turn helps promote the development of the industry.
The scale of the exhibitions has been increasing every year. In particular, some of the technical and design hurdles have been overcome through acquisition of technology patents and joint investment in factories. As a result, some exhibits have achieved international standards in terms of technology.
For instance, the "Nanchang Star" giant ferris wheel, produced by Shanghai Amusement Machine Engineering Co Ltd, is the largest in the country.
Tailong Amusement Company of Chengdu offered a package price of Rmb10 million for its "flood burst", "water and fire fountain" and 3-metre wave generation system. The technology content of Tailong's products has reached international standard. The company commands a significant market share both at home and abroad.
Amusement equipment industry expands rapidly
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| Rides have to appeal to the kids. |
In the early 1980s, Beijing's Zhongshan Park took the lead by importing Japanese-made amusement equipment. One "ride" simulated a rocket's journey to the moon, making the park among the first in China to import such a contraption from overseas.
Subsequently, Mainland factories began to produce their own adaptations based on imported models. Different kinds of amusement equipment were installed at large and small parks across the country. But in general, their designs were rather crude and technology content was low.
Over the past 20 years, Chinese manufacturers have gone through the stages of importation, assimilation and independent innovation. Today, the Chinese mainland's amusement equipment industry meets international standards and is a competitive market player.
According to Mainland statistics, more than 450 large- and medium-sized amusement parks are operating in China with a total annual turnover of over Rmb5 billion. The overall output value of the industry exceeds Rmb8 billion a year, underpinning the momentum of its continued healthy development.
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| An Rmb 5 billion market. |
Meanwhile, the number of amusement equipment manufacturers has increased to 239. They supply Rmb5 billion worth of equipment to amusement parks across the Mainland a year and their exports to overseas markets are valued at over US$300 million.
Amusement industry sees new opportunities
As the Mainland economy continues to grow rapidly and people have more leisure time, new opportunities are emerging in the amusement industry: demand for amusement park equipment is rising, according to trade analysts.
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| One section of a mega roller coaster. |
To attract customers, some theme parks are investing in large-scale equipment. Some manufacturers are understood to have received orders well into 2010. According to an official at the Shijingshan Park in Beijing, the management invested Rmb10 million in adding a roller coaster in the park in 2005, establishing the longest ride of its kind on the Mainland. The investment was recouped within two years. The ride continues to yield excellent returns today.
The rapid expansion of the amusement industry has also spurred the growth of innovative enterprises in product design, manufacturing and development. These enterprises churn out new, attractive models continuously. In 2006, 17 projects developed by seven amusement equipment manufacturing enterprises received outstanding product awards from CAAPA.
The awardees included several innovative rides, including the "flood burst", "water and fire fountain" and high-power wave generation system from Chengdu's Tailong. Various rides produced by Beijing Shibaolai Amusement Equipment Co Ltd including "rapids ride", "rugby", "Apollo spaceship", "whirlwind chairs", "super fighter", "parachuting tower", "crazy train" and "bungy jump".
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| 160-metre high giant ferris wheel. |
The "super wave" and 160-metre giant ferris wheel produced by Shanghai Amusement Machine Engineering Co Ltd won an award, while the "60-seat pirate ship" by Xian Tongle Industry & Trade Co Ltd was also on the list.
A "smart card" amusement park management system provided by Shiyu Group of Zhongshan was an awardee, as was the large-scale inflatable amusement and sports facilities from Beijing Airhouse Membranous Product Engineering Company.
Both the ferris wheel from Shenyang Songling Entertainment Equipment Engineering Co Ltd; and the mega "4D Flight" project jointly developed by Huaqiang Intelligent Technology of Shenzhen and Shijingshan Amusement Park made up the remainder of the award list.
Partnering with overseas firms
Large numbers of international suppliers of entertainment facilities expressed interest in the Mainland market during the exhibition. As the representative of global entertainment equipment supplier Intamin pointed out, theme parks are very profitable in China.
According to a market survey conducted by the International Association of Amusement Parks and Attractions (IAAPA), theme parks and leisure and entertainment facilities are expected to provide excellent growth prospects in the coming five years. A report from PriceWaterhouseCoopers also forecasts that tax revenues from theme parks in China will grow by 7.1% a year to top US$1.8 billion by 2010.
Despite the rosy picture of new generation theme parks painted by various parties, CAAPA president Liu Jingwang pointed out that some of the existing theme parks and amusement parks are operating in the red due to poor management.
In many of these cases, the major causes of failure are outright copying of other theme parks overseas, a lack of character, and mismanagement.
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| Regular updates on rides a must. |
Liu cautioned would-be investors that the local consumer environment and individual purchasing power must be assessed thoroughly, while the theme parks must have unique characteristics. More importantly, new management models must be introduced and new rides have to be added from time to time to sustain their attractiveness to customers.
Liu added that many countries and regions such as Japan, the US and Hong Kong have much to share about management and operations. He said Hong Kong's Ocean Park and Disneyland both have state-of-the-art equipment and first-rate managements. He reckoned Hong Kong companies entering the Mainland market have an edge in overall management know-how, technology importation, and service enhancement.
Apart from a lack of experience, Mainland amusement parks are facing equipment shortages due to production capacity limitations.
Many of the sought-after quality products are in short supply while existing equipment is ageing and in urgent need of quality upgrade.
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| New generation amusement equipment. |
Moreover, the technology content of amusement machines should also be increased. The development of many enterprises is hampered by factors such as limited scale of operation, capital and technology talent. This is another area where foreign firms enjoy an advantage.
