Theme Parks in China A Market Analysis - Essay Example

Leisure is a very complex activity. It is merely what one does in their own free time as an activity that would cause relaxation and give them peace of mind. These activities can be anything from playing a sport, watching television, listening to music, doing things around the house and the yard, adventure activities, shopping, and much more. Leisure differs from one person to another. What one person may consider a relaxing activity maybe work to another. This makes it difficult to combine activities under the umbrella of leisure. For example, playing tennis on a Sunday afternoon maybe leisure to someone and work to a tennis professional who is training hard before a match. Similarly, gardening or cooking which can be considered a leisure activity for many, but that does not necessarily mean it is one for a gardener or a chef. Defining leisure is very difficult because of its complexities. Any activity that people enjoy doing after completing their obligations, which causes relaxation and peace of mind, can be considered a leisure activity. Because of its abstract nature, it is difficult to name all leisure activities. Leisure activities are likely to keep changing with time but it will always be something that a person enjoys doing and brings them happiness. The leisure industry refers to an industry that is closely related to people's leisure lifestyle, leisure activities and leisure requirements, including primarily the economic forms and industry systems such as entertainment, tourism, service, culture and sports industries, and groups that are generated from such industries (Yan, 2006). The People's Republic of China is the third largest country in the world in terms of area, and the first largest in terms of population (China National Tourism Administration). Until a few years ago, the leisure industry in China was unheard of. However, with changing times, this concept has been flourishing rapidly. Leisure and vacations have become very common and attracted the attention of many citizens and governmental organizations. According to statistics from China's National Tourism Administration, as a major representative of the leisure industry, China's domestic tourism industry recorded 1.2 billion in tourist volume and 768.6 billion Yuan in total tourism revenue in 2005, and has been growing ever since. Because the tourism industry is a significant impulse to consumption and economic growth, twenty-four Chinese provinces now consider the tourism industry as a pillar industry, or a leading industry (Yan, 2006). As many as twenty-four of China's thirty-one provinces, municipalities and autonomous regions have made tourism one of their leading industries, encouraging greater consumer spending in leisure activities (Access Asia, 2004). As China's consumer market expands, government and private companies are looking to exploit areas of potential opportunity in the theme and amusement park industry. The Chinese government recognizes the potentially massive boost that increased domestic demand. While foreign direct investment (FDI) provides valuable income, it cannot be compared with surging urban spending in the country's wealthy coastal provinces. Major cities down the eastern seaboard are home to China's expanding urban middle class younger generation of consumers with rising disposable income and an increasing tendency to spend rather than save. While, well to do consumers can afford to travel to other parts of the country on holidays, a vast majority of consumers look for entertainment destinations close to home. These typically include zoos and wildlife parks, aquariums and marine parks, and theme and amusement parks (Access Asia, 2004). Hence, the demand for this kind of entertainment has been increasing, and this industry has seen a rapid growth. Chinese theme parks advocate seeing the world through the ideas upon which many of the theme parks are built. Their aim is to promote and educate people on Chinese culture as well as world cultures. The parks portray beautiful sceneries, architectural art and folk culture from around the world. They also hold various activities in the parks to promote the development of cultural tourism. Apart from cultural education, this has also helped enhance the economy and has been a social asset to the country. According to Zhang Xiqin, then Vice Director of China National Tourism Administration "Cultural tourism has achieved great success in terms of economic profit and social reward" (People's Daily, 2001). This growth and popularity in the Theme park industry has seen Walt Disney World, one of the leading Theme Park and Resort Companies in world, open a branch is China. According to the China National Tourism Administration, China has become an important tourism destination in Asia, and is the fifth large tourism country in the world. Domestic tourism is also growing dynamically. With an increase in the standard of living amongst the Chinese, there has been a strong interest for traveling abroad for holidays and vacations. Foreign travel agencies have also opened office in China to attract Chinese travelers abroad. China has seen an increase in the number of tourists visiting the country. The year 2000 saw 10.1604 million, with a rise of 20.5% foreign tourists, and this figure has only been growing ever since. Britain was one amongst the top twenty countries that sent most of their tourists to China. There are about 24 cities - Changchun, Changsha, Chengde, Chengdu, Dali, Dunhuang, Guilin, Haikou, Hangzhou, Harbin, Nanning, Ningbo, Qingdao, Shenzhen, Suzhou, Tai'an, Tianjin, Weihai, Wuyishan, Xiamen, Xi'an, Yangzhou, Zhuhai - known for their top tourist attractions spread across the country. These cities are famous for their parks and scenic views, religious sites, cultural sports, natural museums, theme parks, food streets, and plenty more (China National Tourism Administration, 2007). China also possesses one of the Seven Wonders of the World - The Great Wall of China, which attracts plenty of tourists who travel from all over the world to see this work of art. With so many beautiful sites to see and so much culture to learn, this company must definitely concentrate on attracting British people to participate in China's tourism and leisure activities. China adopted the Open Door Policy in 1979. This policy helped bring tremendous growth in the industrial output as well as economic growth for the country (Yee-Man Siu & Darby, 1999). In the Chinese Business Culture, an important element of Chinese business is the term Gaunxi. The word 'Gaunxi' means relationships and it represents any form or type of relationship. However, in the Chinese business culture Gaunxi represents a network of relationships among various parties that cooperate together and support one another. The Chinese believe that in the world of business, doing favors regularly and voluntarily is necessary. Therefore, understanding this concept is very important for people who intend to live or work with the Chinese society (Vincent Lou). Irrespective of the business in other countries, in China the right Gaunxi is vital in ensuring that business is successful. By maintaining the right Gaunxi, the organization minimizes the chances of risks, frustrations, and disappointments when doing business in China. Most often, acquiring the right Gaunxi with pertinent authority will determine the competitive standing of an organization in the long run. Along with this, maintaining the right Gaunxi network will minimize inevitable risks, barriers, and set-ups that an organization may face in China. Although sometimes, developing and nurturing a Gaunxi can be very demanding on time and resources, the end result will be very fruitful for the organization (Vincent Lou). The Chinese culture is distinguished from the Western culture in many ways, including how business is conducted. For example, the Chinese prefer to deal with people they know and trust. On the surface, this does not seem to be much different from doing business in the Western world. However, in reality, the heavy reliance on relationship means that western companies have to make themselves known to the Chinese before any business can take place. Furthermore, this relationship is not simply between companies but also between individuals at a personal level. The relationship is not just before sales take place but it is an ongoing process. The company has to maintain the relationship if it wants to do more business with the Chinese (Vincent Lou). Thus, it can be seen how relationships play a very important role for the Chinese in the world of business. With China being one of the leading countries in the world today, it is even more important to understand the importance of Gaunxi and how the concept works if an organization wants to work with China. Another important element of Chinese business if Confucianism. K'ung Fu Tzu, commonly pronounced as Confucius in English, devoted the later years of his life teaching, and writing on individual morality and ethics, and the proper exercise of political power by rulers. Confucius's Confucian ethical teachings include the following values: Li: includes ritual, propriety, etiquette, etc. Hsiao: love within the family, love of parents for their children and of children for their parents Yi: righteousness Xin: honesty and trustworthiness Jen: benevolence, humaneness towards others, the highest Confucian virtue Chung: loyalty to the state, etc. Confucianism does not contain all of the elements of some other religions, like Christianity and Islam. It is primarily an ethical system to which rituals at important times during one's lifetime have been added (Robinson, 2004). Thus, it can be seen how the world of business in China is very different from the Western world. The importance of maintaining a good working, personal, and professional relationship is very important for organizations wanting to do business with China. Being one of leading countries in terms of business today forces the Western world to follow the Chinese business culture. China is also attracting tourists from all over world, in turn making their tourism industry one of biggest in the world. Work Cited Access Asia 2004, Theme Parks in China - A Market Analysis, The Infoshop.com, viewed 4 November, 2007, . China National Tourism Administration 2007, Tourist City, China Tourism, viewed 3 November, 2006, < http://old.cnta.gov.cn/lyen/city/index.htm>. People's Daily 2001, Theme Parks Popular in China, People's Daily, viewed 4 November, 2006, . Robinson B.A. 2004, CONFUCIANISM: Founded by K'ung Fu Tzu, Religious Organization.com, viewed 5 November, 2007 Siu, N. Y. & Darby, R. 1999, A Study of Management Development Practices in a Foreign Joint Venture in China, Research and Practice in Human Resource Management, viewed 3 November, 2007, . Vincent Lou 2004, Chinese Business Culture, viewed 5 November, 2007 . Yan 2006, Leisure industry a hotspot of China's economic growth, NEWSGD.com, viewed 4 November, 2007, . Read More