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Updated: 2007-05-21 17:10

Beijing's amusement market is far from being fully developed, and more effort and investment should be made to realize its potential, an industry insider tells China Business Weekly.

"Compared with Tokyo, Beijing's amusement industry is in its initial development stage, with only three or four major parks offering outdoor amusement programs," says Fumie Nishikawa, general manager of Beijing Amusement Park Co Ltd.

"Given the city's large population and the ever-rising living standard, it is an assured for the segment to embrace (growth)," he says.

Agreeing with Nishikawa, Zhang Guangrui, director of Tourism Research Center of Chinese Academy of Social Sciences, believes amusement parks will see further growth Beijing.

"When a city's per capita GDP surpasses $5,000, residents will pay more attention to entertainment and leisure," Zhang says. Beijing's per capita GDP exceeded that figure last year.

With confidence in the market potential, Beijing Amusement Park will invest 80 million yuan this year on renovation and importing a new 60-meter-high roller coaster, the first of its kind in Asia, according to Nishikawa.

The park was established 20 years ago as a Sino-Japanese joint venture, and may receive more investment from its Japanese partner in the future.

"We are studying the option of further investment in the park. Judging from the current market circumstances, the investment won't be small," Nishikawa says.

In addition to the roller coaster, the park is planning other new facilities, including a large-scale indoor water entertainment center and a high-tech amusement complex. As a long-established facility, Beijing Amusement Park must continue to renovate to attract new customers and keep its current ones, its manager adds.

Another priority to enlarge market share is to raise the quality of service and enhance internal administration, which are crucial to success in the hospitality industry, Nishikawa says.

Stringent internal administration and customer-oriented services are two keys to success for the hospitality industry in Japan. The Beijing Amusement Park is following suit by offering similar services, she says.

"Our surveys demonstrated that during the Labor Day Holiday, customers were more satisfied than before with our interactive, detailed and human-oriented services," Nishikawa says.

In her view, better service, stringent administration and innovative products are the backbone to support further development of the amusement industry in Beijing. Competition is actually helpful to further drive the segment forward.

"Tokyo has a dozen amusement parks, while Beijing has only four. The market is large enough to accommodate more, which can help educate the market and tap the potential in return. We are not afraid of competition," Nishikawa comments.

The park plans to make use of special occasions, such as National Day during the second half of this year, and implementing a series marketing campaigns and promotions to further strengthen its position.

"Of course, safety and reliability are always our top concerns, even if the growth momentum is robust. We will pay attention to safety issues when the facilities and equipment are in full operation," Nishikawa points out.

Sixty percent of the park's target customers are young people aged between 15 and 35. Nishikawa is determined to bring in more company customers and adults to broaden the customer base.

"Our long-term goal is to attract more adults and frequenters to visit our park through our differentiated strategies, products and human-oriented services," Nishikawa says.

Beijing Amusement Park has seen annual income growth of more than 30 percent over the past three years. Its revenue from last year hit 65 million yuan.