Universal Parks & Resorts are optimistic about their potential in China. This investment would pass Shanghai Disney Resort which in 2016 cost $5.5 billion. This would be the largest investment on a theme park ever. At least for now, but this is the first time Disney has ever been outspent by a competitor.
The decision to enhance the budget on Universal Beijing came after Universal and its Chinese partners saw the success of Shanghai Disneyland. Which drew more than 11 million visitors in its first year. In 2018, Shanghai Disneyland has already expanded with a land based off of Toy Story.
Universal and its partners are now expecting the park to draw 10 million visitors in its first year. Up from the initial projection of 7 million.
Now with Universal increasing the budget where will all that extra cash flow go? The investment will go toward expanding retail and entertainment space, improving planned attractions and building new lands including a Harry Potter themed land. Also attractions based on Transformers, Minions, and Kung Fu Panda are being built. Franchises which have strong followings in China.
These seismic shifting industry moves from China’s theme park industry resulted in its revenue topping $6 billion last year, up 27% from 2016. The revenue is suppose to hit $14 billion by 2022. China’s theme park industry is on track to surpass the United States in the next few years.
Universal is partnering with Beijing Shouhan Cultural Tourism Investment Co., which is owned by five Chinese companies. Universal will have a 30% stake in the Beijing park, with its Chinese partners owning the remainder. The project was announced in 2014. Universal at the time said the park would cost $3.26 billion that total would go up to $6.5 billion. The park was suppose to open up in 2020. The opening will be pushed back to 2021. Due to lengthy negotiations and hiring challenges, according to people within Universal.
Universal is continuing to dream up new plans for the Beijing park since the original announcement. New plans include a CityWalk shopping, dining and entertainment district adjacent to the park as well as a Universal-branded hotel.
Although Universal Creative has started designing the park, and land has been cleared. Major construction hasn’t started yet but should take place sometime during this year. The partners are currently holding up construction on the park. The park’s launch is being obstructed by the struggles to hire and retain talent. Employee turnover was about 35% in Beijing. Important roles that include art direction, engineering, and design have been a challenge to fill. On Universal’s job page the Beijing jobs require the person to spend the first six months in Orlando at Universal park’s headquarters before heading to Beijing. For may interested in these positions that is a huge deal breaker.
Universal Parks & Resorts is a unit of Comcast Corp’s NBCUniversal, and has theme parks in Los Angeles, Orlando, Singapore, and Japan. Along with the current development in Beijing. It is heavily rumored that Universal is also planning a indoor theme park in Moscow, Russia. An area of the world that is currently untouched by Disney.
Universal Beijing will be the fifth theme park for the company. Although only one attraction has been officially announced, Fast & Furious: Supercharged, not to mention the indication of attractions based off of Harry Potter, Transformers, Kung Fu Panda, and Minions. The park looks to utilize other Universal-based properties such as Jurassic Park, King Kong, Shrek, Madagascar, and The Mummy. As well as third party properties which include Men in Black, The Simpsons, Sesame Street, Peanuts, and Dr. Seuss Enterprises.
Universal Beijing is currently slated to open in 2021.
Source: The Wall Street Journal
Zach Perilstein is the Editor-in-Chief of the Boardwalk Times.
