Roundabout course

Traditionally, funding for adventure parks has come from established industry players, such as Overseas Chinese Town Group and Shenzhen Huaqiang Holdings, or multinational entertainment groups, such as Walt Disney Co, which is set to open its first theme park on the Chinese mainland, in Shanghai, in 2015.

However, largely due to the nation's housing market restrictions, about one-third of China's top 100 property developers have now entered the tourism real estate sector, including industry giants Vanke and Wanda, according to China Venture Group, a research and consulting company.

According to 5u588.com, a Chinese tourism-industry information website, 70 tourism real estate projects have already been signed this year, with a total investment of 260 billion yuan. That figure is expected to surpass 1 trillion yuan by December.

A samba dancer interacts with visitors at the Happy Valley amusement park in Beijing in July. An Xudong / for China Daily

To prevent companies getting around the restrictions, however, Beijing city authorities in August last year banned the construction of new theme parks over a certain size.

The move prompted the cancellation of many projects in the capital, Shao added.

Making profits from commercial and residential developments "is something that everyone in this industry knows", said an employee of an amusement park in Tianjin who spoke on condition of anonymity.

"Parks require a lot of funding and have high operating costs, so it can take a long time for investors to recoup their money," he said.

And not all of them do.

According to Shao, many theme parks built in the early 2000s have gone bankrupt, with the properties failing to sell at dozens of auctions over the past seven years.

"The development of the theme parks in China has taken a roundabout course, especially in the early years," said Feng from the China Association of Amusement Parks and Attractions. "Although some theme parks are operating well and making some money, like Happy Valley, many are still in debt."

An increase in theme parks is good news for thrill-seekers, but Feng said investors need to be prudent, to avoid finding themselves on a financial roller coaster.

Ji Jin contributed to this story.

zhengxin@chinadaily.com.cn