Chinese streaming giant iQiyi announced plans on Thursday to open its first full-fledged theme park later this year. The forthcoming “iQiyi Land” will be located in Yangzhou, Jiangsu province—just over two hours from Shanghai by high-speed rail—and will feature attractions based on characters from the platform’s popular films and TV series.

The park will feature seven distinct types of attractions, ranging from immersive theater and interactive film sets to cutting-edge virtual reality experiences that feature characters from IQiyi's films and television shows.

Expanding China’s Experience Economy

iQiyi is the latest company to tap into China’s growing appetite for themed attractions, even as retail sales remains sluggish. This summer, Legoland opened its first Chinese resort in Shanghai, while Warner Bros.Discovery announced last month it would be opening a "Harry Potter Studio Tour" in 2027 in the same city.

Additionally, Chinese toy brand Pop Mart also opened “Pop Land” in Beijing in late 2023, quickly becoming one of the most visited attractions in the city’s business district.

iQiyi’s plans is new proposal is built on the company's recent success in the VR-based entertainment. After building the world's first technology that combines VR headsets with moving platforms, allowing users to enjoy the sensation of walking, flying or riding in boats all in one physical space, IQiyi has created such VR attractions in over 40 different locations in at least 20 Chinese cities.

One of its most successful experiences, “Strange Tales of the Tang Dynasty: To the West”, attracted more than 100,000 visitors in its first year. According to Hang Zhang, Senior Vice President at iQiyi, the integration of VR, gaming, and AI has paved the way for more compact and interactive theme parks. He also revealed that some of these VR-based experiences will debut at iQiyi Land before being rolled out to other locations.

Theme Park Industry Booms Post-Pandemic

China’s theme park industry is experiencing a rapid resurgence. According to data from the International Association of Amusement Parks and Attractions (IAAPA), theme park revenue in mainland China is projected to exceed 480 billion yuan in 2025, with visitor numbers surpassing 500 million.

This marks a significant rebound from the 30.39 billion yuan revenue recorded in 2023, just after pandemic-related restrictions in China were lifted.

Theme parks are increasingly leveraging VR technology to enhance guest experiences while incorporating AI tools for crowd management. The IAAPA also noted that many parks are blending global franchises with local Chinese narratives to cater to domestic audiences.

The growing Chinese theme park sector has attracted major international players. The IAAPA recently announced that the head of Disney Parks International will speak at its Asia Expo in Shanghai this summer.

Disney’s Shanghai Disneyland, which opened in 2016, reported a 28% year-over-year increase in international park revenue for the quarter ending Dec. 28, 2024—contrasting with a 5% decline in U.S. theme park revenue.

Comcast, whose Universal Studios Beijing launched in 2021, said higher revenue at its international theme parks offset lower guest attendance at its U.S parks in the fourth quarter.

Tough competition in the streaming industry

Tourism has been a rare bright spot in China's otherwise lackluster consumer market. The consumer price index, an indicator of domestic demand, rose by just 0.2% last year while the tourism component increased by 3.5%.

China's plan to boost consumption this year called specifically for developing the experienced economy. IQiyi has previously worked with a local tourism board to produce a TV drama set in a remote part of China, drawing visitors.

But the chinese streaming industry is also remains competitive. IQiyi reported an 8% drop in 2024 revenue to 29.23 billion yuan, reversing a 10% increase in the prior year.