Analysis of the Causes of Poor Management of Outdoor Water Parks
In China, high temperatures persist for several months each year. Whenever the heatwave hits, outdoor water parks in China are typically packed with visitors. This hot season is the prime time for outdoor water parks to generate profits. If there is no good business during this critical period, the operator will likely incur losses. What are the issues causing the poor management of the water park?
1. Status quo of competition.
The status quo of competition in the same industry shows that as China’s economic development improves, more investors are pouring money into the construction of outdoor water parks. There are even instances where several companies compete within the same area. Some promotional slogans ignore the constraints of the new advertising law, violating national regulations to compete for limited profits. Thus, competition within the industry is fierce. Additionally, the water park equipment is easily imitable, and mainstream slides are commonly available across the industry. Since hardware construction cannot be significantly enhanced, it is essential to focus on software construction to achieve profitability in highly competitive areas.
2. Replaced by other parks.
Outdoor water parks are a type of theme park that can easily be replaced by other emerging theme parks. Additionally, there are indoor water parks, swimming pools, and other water activities as alternatives. However, outdoor water parks have irreplaceable advantages, and operators must leverage these advantages to attract more visitors.
3. In terms of safety.
Water parks feature fast and thrilling amusement activities, necessitating extremely high safety standards. This is a crucial issue that operators cannot overlook. Safety is regarded as the top priority in water park management because any safety issues could lead to catastrophic consequences, including potential bankruptcy.
4. The probability of poor operation of outdoor water parks due to a weak regional economy.
Although the likelihood of poor operation due to a weak regional economy or economic crisis is relatively low compared to other factors, it remains a concern. The financial crisis of 2008 serves as an example. As a tourism product and resource, water parks have a high consumption elasticity index. During an economic crisis, the tourism market becomes weak and vulnerable to shocks.