Core Viewpoint - The permanent closure of the Madame Tussauds wax museum in Beijing highlights the challenges faced by traditional wax museum formats in the current market environment, driven by declining visitor interest and changing consumer behavior [1][2][6]. Group 1: Closure Announcement and Visitor Trends - The Beijing Madame Tussauds wax museum will permanently close on October 1, 2025, due to lease expiration and brand strategy adjustments, despite claims from nearby merchants that the lease may actually extend to 2028 [1][4]. - Following the closure announcement, the museum experienced a surge in visitors, with 91 guests observed in just half an hour, equating to a typical day's traffic [1][3]. - The current adult ticket price is 99 yuan, significantly reduced from 200 yuan at the end of 2022, and lower than other locations in Shanghai and Wuhan [1][3]. Group 2: Industry Challenges and Consumer Behavior - The appeal of wax museums, particularly those centered around celebrity photo opportunities, is declining, with limited customer bases and low repeat visitation rates [2][7]. - The economic environment has led to more cautious spending on non-essential cultural experiences, further impacting visitor numbers [2][7]. - The traditional static display model of wax museums is losing competitiveness in an era where interactive and immersive experiences are preferred by younger audiences [6][7]. Group 3: Financial Implications and Brand Value - Merlin Entertainment Group, which operates the Madame Tussauds brand, reported a pre-tax loss of 4.92 billion pounds for 2024, with the brand's value dropping by 1.63 billion pounds, indicating significant financial strain [6][8]. - The closure of the Beijing and Chongqing locations reflects a broader trend of strategic contraction within the wax museum segment in China, as the company reassesses its market presence [5][6]. Group 4: Future Outlook for Remaining Locations - The remaining Madame Tussauds locations in China face similar challenges, as merely updating with local celebrity figures is unlikely to sustain visitor interest due to high production costs and low update frequency [8]. - In contrast to theme parks like Disney, which maintain visitor engagement through continuous expansion and new content, wax museums lack the same capacity for growth and adaptation [8].

Core Viewpoint - The recent closures of the Madame Tussauds wax museums in Beijing and Chongqing highlight the declining business viability of the brand in China, attributed to low revenue and high maintenance costs [1][6][18]. Group 1: Closure Details - The Beijing Madame Tussauds wax museum announced its permanent closure effective October 1, 2025, citing lease expiration and brand strategy adjustments as reasons [1][2]. - Following the closure, some wax figures will be preserved, while most will be relocated to other Madame Tussauds locations in China [3]. - The Chongqing location also announced its closure earlier in May 2023, marking a trend of declining operations for the brand in China [6][9]. Group 2: Financial Performance - Merlin Entertainments, the parent company of Madame Tussauds, reported a pre-tax loss of £492 million for 2024, a significant increase from a £214 million loss in 2023 [11]. - The brand value of Madame Tussauds plummeted by £163 million in 2024, making it the largest contributor to the decline in Merlin's asset value [13]. - The decline in asset value is attributed to challenging market conditions in both the UK and China [14]. Group 3: Revenue Challenges - The primary revenue source for Madame Tussauds is ticket sales, with additional income from merchandise, exhibitions, and sponsorships, which contribute less significantly to overall revenue [19][20]. - A sharp decline in visitor numbers has severely impacted core revenue, leading to a drastic drop in income [21]. - Maintenance costs are rising due to high rental prices in prime locations and the expensive upkeep of wax figures, which are costly to produce and require daily maintenance [22][23]. Group 4: Market Trends - Visitor feedback indicates a lack of engagement and entertainment value, making it difficult to attract younger audiences [24]. - The reliance on celebrity figures to draw in young fans has proven insufficient for sustaining long-term interest and repeat visits [25][26]. - The future of wax museums in China appears increasingly challenging, raising concerns about the sustainability of remaining locations in Hong Kong, Shanghai, and Wuhan [27][28].