Universal Parks & Resorts and its Chinese partners are expanding plans for a 300-acre theme park in Beijing, doubling their investment to $6.5 billion on heightened optimism about the booming Chinese theme-park market, according to a person familiar with the matter.
The investment would surpass that of Walt Disney Co.’s Shanghai Disney Resort, which at the time of its 2016 launch cost more than $5.5 billion, and would be the most ever spent on a theme park at the time of opening, according to industry experts.Universal now expects the Beijing park to draw 10 million visitors in its first year, up from an initial projection of 7 million, the person said.The increased investment will go toward expanding retail and entertainment space, improving planned attractions and building new lands including one based on the Harry Potter books and films, the person said. The park will also have attractions based on the Transformers, Minions and Kung Fu Panda film franchises, which have strong followings in China, a second person said.Sources: https://www.wsj.com/articles/bigger-than-disney-universal-beijing-parks-construction-budget-doubles-1525687376 and https://m.weibo.cn/5881979607/4237170308582479Although design work has begun and land has been cleared, major construction hasn’t yet started but is expected to begin this year, people familiar with the matter said. At the time of the 2014 announcement, only a preliminary agreement was in place between the partners, the first person said. The joint venture was established in 2017, after more than three years of talks, that person said, adding to delays.
The park’s launch has been further hindered by struggles to hire and retain talent, according to comments made by Universal executives at an industry panel in Beijing last month, according to a person who attended.
The executives said employee turnover in Beijing was about 35%, the person said. Critical roles such as art direction, engineering, design, procurement and architecture have been a challenge to fill, people familiar with the matter said.