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Park suppliers eager to make deals, but those who have gone before warn of dangers
LONDON - All roads are said to lead to China, the world's fastest-growing economy, and European theme and amusement park suppliers are on the path to this huge but challenging market.
Ask Holland's Vekoma Rides Manufacturing, which in October unveiled a joint venture with Dutch engineering group Huisman, which has opened a factory in China. The companies plan to start producing complete roller coasters, including tracks, at the Guangzhou factory by year's end.
"Our first goal is to manufacture quality structures at reasonable and marketable prices for the fast-growing leisure industry in the People's Republic of China," the company said in a statement.
Vekoma's commitment, among the first major China deals in Europe's theme park sector, is understandable.
Because of the country's low labor costs and its size, it is the largest recipient of foreign direct investment. Its gross domestic product accounts for 13% of the world's output, second only to the United States.
Within 10 years, it could become the world's largest importer and exporter, observers say. American companies already recognize this, with more than 40,000 U.S. manufacturers doing business in China.
PricewaterhouseCoopers predicts revenue from the Asian amusement industry, buoyed by China, will reach $7.6 billion by 2008.
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