Core Viewpoint - The closure of the Madame Tussauds wax museum in Beijing, following the closure of the one in Chongqing, highlights the operational challenges faced by Merlin Entertainments in China, primarily due to high rental costs and changing consumer preferences [1][4]. Group 1: Closure Reasons - The Beijing Madame Tussauds wax museum will permanently close on October 1, 2025, due to the expiration of its lease and strategic brand adjustments by Merlin Entertainments [4]. - High rental costs were cited as a significant factor in the decision not to renew the lease for the Beijing location [4][5]. - The closure is part of a broader strategy to reassess and adjust Merlin's operations in China, including the potential relocation of wax figures to other locations [4][11]. Group 2: Market Challenges - The operational costs of wax museums are high, including rent, maintenance, and staffing, making it difficult to sustain profitability solely through ticket sales [5]. - Changing consumer habits have led to a decline in interest in static attractions like wax museums, with a growing preference for immersive and experiential entertainment options [5][10]. Group 3: Strategic Adjustments - Merlin Entertainments plans to upgrade other Madame Tussauds locations in China and shift focus towards LEGO theme parks as part of its strategic realignment [10][13]. - The company reported a decline in revenue, with a 3.2% drop to £20.57 billion and an increase in pre-tax losses to £4.92 billion, indicating financial pressures that necessitate strategic changes [13]. - The opening of the Shanghai LEGO Land in July 2023 has been positively received, suggesting a potential shift in consumer interest towards more interactive and family-oriented attractions [14].

Core Viewpoint - The Madame Tussauds wax museum in Beijing will permanently close on October 1, 2025, due to lease expiration and strategic brand adjustments by Merlin Entertainments, which has been experiencing significant financial losses [2][3]. Group 1: Closure Announcement - The Beijing Madame Tussauds wax museum announced its permanent closure, with most wax figures relocating to other locations in China, including Shanghai, Hong Kong, and Wuhan [2]. - The museum opened in May 2014 and was the first international entertainment venue in Beijing's Qianmen commercial street [2]. Group 2: Financial Performance - Merlin Entertainments reported a pre-tax loss of £492 million for the year 2024, an increase from a £214 million loss in 2023, indicating a worsening financial situation [3]. - The brand value of Madame Tussauds wax museum declined by £163 million in 2024, contributing significantly to the overall impairment losses for the company [3]. Group 3: Operational Challenges - The production of wax figures is complex and costly, taking 3 to 4 months and costing up to millions, which adds to the high operational costs of the wax museum [4]. - The primary revenue sources for the wax museum are ticket sales and merchandise, which are directly linked to visitor numbers. However, there is a growing preference for interactive and immersive experiences among visitors, leading to a decline in attendance at traditional wax museums [4]. - Compared to theme parks like Disney and Universal Studios, the merchandise sales at wax museums are not as strong, and the high rental costs associated with prime locations further strain profitability [4].