I. The tourism industry investment maintains a buoyant level, with "finding joint ventures to invest together and finding new tracks to invest first" as the leading investment strategy

(I) The tourism industry investment index has fallen under pressure but remains at a buoyant level

The cultural and tourism industry investment index remains in the buoyant range, with market expectations more cautious than last year. Affected by economic downturn, weakening consumer expectations, the energy conversion cycle, and the lagging effect of policies, the transformation of tourism supply from incremental expansion to stock optimization still requires a period of time. During this process, travel agencies, star-rated hotels, and tourist attractions, etc., offline scene operating enterprises are generally under pressure, and industry confidence and investment confidence have steadily decreased. The report constructs a tourism industry investment index system from three dimensions: investment confidence, investment willingness, and investment returns. After comprehensive calculation, in the first three quarters of 2024, the tourism industry investment index was 122.0, down 6.0% compared with 2023 (129.8), and is in the buoyant range.

Figure 1 Comparison of tourism industry investment index and sub-index in the first three quarters of 2023-2024

Compared with the previous year, the number of enterprises accelerating investment recovery has increased, and about 60% of enterprises have maintained or increased their return on investment. Special survey data shows that in the first three quarters of 2024, 70.1% of surveyed enterprises made investments in the tourism industry. Among them, the proportion of investment recovery periods that remained the same, shortened, and increased compared with the previous year were 45.6%, 18.2%, and 36.2%, respectively. The proportion of enterprises that shortened the investment recovery period was higher than in 2023 (11.3%). From the perspective of investment returns, the proportion of return on investment that increased, remained the same, and decreased compared with the previous year were 42.9%, 19.2%, and 37.8%, respectively. The concept of cultural and tourism leisure consumption in the demand market has changed, while the energy conversion of the tourism industry on the supply side still requires a period of time. The pace of innovation and transformation of tourism market entities is different, and the business conditions of different sub-sectors and enterprises are uneven, resulting in a differentiated feeling, and fluctuations in investment, operation, and returns.

(II) The new supply and demand structure drives new investment directions, and joint venture investment and international cooperation contribute to quality improvement

Industry investment adjusts dynamically with the supply and demand structure, and investment in scenic spot supporting facilities and secondary consumption scenarios and tourism destination operations has increased significantly. Special survey data shows that in the first three quarters of 2024, the main areas of investment in the tourism industry were concentrated in the construction of theme parks/amusement parks, tourism destination operations, and cultural/tourism/entertainment equipment. From the fluctuation trend, the investment preference for theme parks/amusement park construction is declining, while the investment preference for scenic spot supporting facilities and secondary consumption services and tourism destination operations is increasing. Focusing on the new characteristics of rational consumption, pursuit of cost-effectiveness, attention to experiential and high-quality leisure content, the research and development of products for tourist destinations, interactive experience upgrades, and exploration of innovative scenarios are increasing. As more and more tourists are willing to experience local life in shopping malls, streets, and cultural venues, scenic spots/resorts are seeking to increase traffic and revenue by accelerating product iteration and secondary consumption scenarios. The change in the supply and demand relationship drives the industry to actively adapt, breaking through the dilemma of homogeneous competition with innovative supply.

Figure 2 Comparison of tourism investment areas in the first three quarters of 2023-2024

International exploration in the tourism industry continues to advance, and multi-field joint investment seeks complementary advantages. Under the market demand environment where quality and cost-effectiveness are balanced, the market needs more high-quality, high-value-added products, and seeking breakthroughs through international cooperation has become the choice of more and more enterprises. Special survey data shows that 10.4% of tourism enterprises have cooperated with foreign related brands. From Disney, Merlin, and Puydef International theme parks, to large amusement equipment from Canadian Whitewater, Canadian Bolan, and Italian Zamperla, to outdoor sports equipment from French Panso, to IP operations such as Ultraman and Doraemon, to digital art and theater performances such as Teamlab and Broadway Nederlander, domestic tourism industry has carried out extensive cooperation with international brands in project operation, equipment manufacturing, IP cooperation, scene creation, and performances, continuously improving its product quality and service operation capabilities. In order to better leverage the advantages of strong alliances, tourism enterprises in Shanghai, Sichuan, and other places have initiated investment alliances to explore joint venture investment models, such as joint ventures between scenic spots and destination operators to promote scenic spot marketing, joint investment by technology companies and tourism enterprises to create new scenarios, and promotion of high-quality projects based on joint advantages.

(III) Investment willingness in 2025 is better than this year, and demand upgrades drive investment in new tracks

Compared with 2024, the industry's investment willingness in 2025 is more positive. In terms of investment scale, compared with 2023, 50.1% of surveyed enterprises said that the investment scale increased in 2024, and 16.3% of surveyed enterprises said that they reduced investment. For the 2025 investment plan, 60.2% of surveyed enterprises said they would increase investment, and the proportion of enterprises reducing investment was 7.5%.

Figure 3 Changes in investment scale in 2024 and investment plans for 2025

Residents' willingness to travel remains strong, and diversified needs support the industry's enthusiasm for exploring new tracks and innovations. With the continuous release of travel demand and consumption iteration, the tourism industry relies on its advantages in resources, technology, and human resources to explore new tracks and launch more innovative attempts. In terms of innovative driving force, technology empowerment (16.0%), including artificial intelligence, virtual reality, intelligent equipment, and technology + tourism, and cultural creativity and cultural content research and development (12.8%) are the main methods. In terms of innovative business formats, parent-child research and study (9.3%), health preservation (6.4%), night (5.8%), and outdoor (2.6%) are the areas of focus for industry innovation. In terms of innovative content, immersive (8.1%), interactive experience (8.7%), and emotional value (3.5%) are the key words. In terms of innovative regions, urban renewal, suburban tourism, sinking markets, county-level economy, and the western market are potential areas for the future.

Figure 4 The future innovation directions and content considered by surveyed enterprises

II. The scale of amusement equipment & service procurement is shrinking, and the market urgently needs product innovation and scenario expansion

(I) The amusement equipment procurement index has declined, and market expectations affect industrial expansion

In the first three quarters of 2024, the amusement equipment/service procurement index was 49.4%. Affected by the weakened investment expectations in theme parks and amusement parks, the scale of amusement equipment procurement has shrunk compared to 2023. Compared to 55.5% and 60.8% in the first and second halves of 2023, the amusement equipment/service procurement index dropped to 49.4% in the first three quarters of 2024. Currently, the main service scenarios for domestic amusement equipment/services are concentrated in theme parks (38.5%), various amusement parks (37.7%), and natural scenic areas/resorts (32.7%). However, the proportion of investment in theme parks and amusement parks from the first half of 2023, the second half of 2023, and the first three quarters of 2024 decreased from 52.2%, 37.3% to 33.6%. The investment scale in cultural and tourism leisure spaces focusing on parent-child entertainment has slightly decreased, which has to some extent suppressed the expansion of the upstream equipment procurement market.

Figure 5 Main Application Scenarios of Domestic Tourism Equipment in the First Three Quarters of 2024

From the perspective of the sub-indicators of the equipment procurement index, compared to the decrease in order volume, amusement equipment manufacturers have significantly reduced their personnel and inventory, leading to a decrease in equipment output. From the perspective of inventory activation, current theme parks and amusement parks pay more attention to cultural content research and development, the launch of cultural and technological projects, and business model innovation. Amusement equipment and services are also facing increasingly urgent innovation pressure.

Figure 6 Amusement Equipment/Service Procurement Index and Sub-indicators from 2023 to the First Three Quarters of 2024

(II) The basic market of amusement equipment remains solid, and innovative transformation has become an industry consensus

The domestic tourism market is prosperous and developing well, and the demand for the amusement equipment market still has room for growth. The equipment supply capacity continues to improve, and the industry foundation remains solid. Special survey data shows that in the first three quarters of 2024, 56.7% of cultural and tourism enterprises have a demand for purchasing amusement equipment and services. In the future, more than 60% of enterprises said they would consider expanding the scale of equipment procurement. With the interactive promotion of tourism demand upgrading and supply innovation, and the release of policy effects under the central government's high-level promotion, the demand for family parent-child trips, vacations, and leisure travel continues to be released, industry development and investment confidence are recovering, and the development prospects of the amusement equipment market are promising. In terms of supply capacity, 59.9% of surveyed enterprises stated that tourism equipment manufacturing has fully or relatively met the demand in the first three quarters of 2024, exceeding the 2023 level. Amusement equipment manufacturing and service enterprises in various sub-sectors are following the demand to accelerate product quality upgrades, laying a good foundation for future content innovation, technological research and development, and business expansion.

Breaking through product homogeneity and single scenarios through innovation and upgrading has become an industry consensus. Special survey data shows that in response to industry development pain points such as lack of good products/projects, long investment cycles and high risks, and insufficient consumption due to economic downturn, amusement equipment manufacturing/service enterprises generally believe that innovation and research and development (34.6%), technological breakthroughs (28.0%), and improved operation and maintenance services (20.9%) are future directions for industrial breakthroughs. The primary and homogeneous nature of amusement facilities can no longer meet the needs of rapid iteration. Focusing on the diverse needs of amusement and leisure spaces, research and development of products with better quality, richer content, advanced technology, and emphasis on experience that can provide emotional value is the effective path to match demand and boost consumption.

(III) The industry needs high-quality product delivery, diversified scenario expansion, and the cultivation of a vertical product system in the future

Focusing on the main application scenarios of tourist equipment such as theme parks, amusement parks, and scenic areas/resorts, ensuring high-quality product delivery based on differentiated needs. From the perspective of different regions, leading theme parks and amusement parks in first-tier cities improve consumption through refined brand operations, while theme parks and amusement parks in second- and third-tier cities and below, represented by Fantasi, effectively meet the needs of cultural and tourism leisure through characteristic cultural content and reasonable pricing. Amusement equipment manufacturing and service enterprises need to continuously optimize product design, process quality, and customized services based on the differentiated characteristics of the amusement industry in different cities, strengthen independent research and development capabilities, and ensure the supply and operation and maintenance services of equipment and facilities that match international standards. Combining the needs of different brands of amusement venues for the quality, service, and property rights protection of amusement facilities, amusement equipment manufacturing and service enterprises should keep abreast of the times in production, marketing, operation and maintenance, and property rights regulations.

Continuously explore the expansion and application of amusement equipment in potential scenarios such as urban commercial districts/blocks, cultural venues, hotels/homestays, urban parks, and highway service areas. In the new era of mass tourism, tourists widely enter the living spaces of other places, and amusement and leisure venues need to take into account the leisure needs of both local residents and tourists. As more and more theme parks and amusement parks try to integrate with commerce, art, and culture, exploring new win-win models, amusement equipment manufacturers and service providers should also pay attention to the product demands of these potential new scenarios, design and produce amusement and leisure products suitable for commercial spaces, cultural spaces, and public spaces, and promote the diversified development of the industry.

Strengthen independent research and development capabilities and guide the cultivation of refined and vertical product systems. Combining the advantages, regional resources, etc., of amusement equipment manufacturing and service enterprises, clearly positioning the target market and customer groups, strengthening the cultivation of vertical product systems in sub-sectors, continuously deepening and strengthening in sub-sectors, expanding product categories and service capabilities. Improve independent research and development capabilities, focus on advantageous areas, rely on technological research and development, service operation capability improvement, and project experience accumulation to provide equipment products with unique or leading technologies. Develop characteristic brand activities and projects to enhance the brand influence of enterprises.