China Turns to Theme Parks Like Legoland to Reignite Consumer Spending

Tourists poured into China’s first Legoland in Shanghai earlier this month, as the country ramps up efforts to position itself as a global travel hotspot and spark life back into its sluggish consumer economy.

The newly launched $550 million Legoland Shanghai – now the largest operated by UK-based Merlin Entertainments – marks another major push by China to attract both local and international visitors through large-scale branded entertainment. The park boasts 75 rides across eight themed zones, a hotel with pirate and castle-inspired rooms, and a miniature replica of Shanghai’s skyline made from Lego bricks.

This move is part of a broader trend: international entertainment giants like Warner Brothers and Hasbro are also preparing to enter the Chinese market with parks themed around Harry Potter and Peppa Pig. The aim is clear – draw in domestic tourists and foreign visitors to spur consumption and revitalise the world’s second-largest economy.

China’s central and local governments are offering a range of incentives to back such developments, from infrastructure improvements to tax breaks. In the case of Legoland Shanghai, new roads and transport links were constructed, while a nationwide campaign has distributed around 570 million yuan (about $80 million) in tourism vouchers and discounts to drive foot traffic.

Local authorities are optimistic. During Legoland’s launch ceremony, one official described the park as an economic catalyst expected to generate jobs and bolster nearby businesses. Similar government involvement is evident elsewhere – state firms, for instance, hold a majority stake in Shanghai Disneyland.

“Theme parks offer China an opportunity to showcase itself as both open to the world and invested in domestic economic revival,” said Gu Qingyang, an economist at the National University of Singapore. “They attract investment, create employment, and improve infrastructure.”

Yet the market is far from easy. With more than 400 theme parks already scattered across the country, competition is fierce. Industry watchers say parks need to go beyond simply existing – they must deliver memorable experiences tailored to Chinese tastes.

Influencer Artem Kapnin, who attended a Legoland Shanghai preview, praised the park’s efforts to adapt to local culture but said it lacked the immersive atmosphere of Disneyland. “I enjoy the fireworks and the magic of Disneyland more,” said the student, now based in China.

Still, analysts remain hopeful. Research suggests Chinese parents are increasingly spending more on their children, even as broader household spending weakens. According to Xiaofeng Zeng of Niko Partners, this trend could work in favour of family-focused parks like Legoland.

Tourism was highlighted as a priority in China’s most recent five-year economic plan, with a promise of more resorts and attractions. And while the returns may take time, the long view is key.

“Theme parks aren’t built for today – they’re built for the decade ahead,” said Prof Gu. “And China is betting that its long game will pay off.”