China’s booming ‘panda economy’ is black, white and spreading all over

When Spanish tourist Maxim Gomez arrived in China on his first visit, the 24-year-old had one destination in mind: the Chengdu Research Base of Giant Panda Breeding in the southwestern province of Sichuan, famed for its extensive collection of the country’s national mascots.

“This is probably the best spot in the world to see pandas, because it’s a reserve and not a zoo,” he said. “And pandas are very rare animals, which makes them unique.”

Like many of his friends, Gomez became enamoured of the animals for their clumsy, playful behaviour, as seen in videos shared en masse on his country’s social media platforms.

While the large bears and their distinctive black and white fur have become a ubiquitous presence online, they have also contributed to local tax revenues and created opportunities for enterprises in their habitats through tourism and merchandising, laying the foundation for what has been dubbed a “panda economy”.

The city as a whole welcomed nearly 20 million tourists during that time, generating revenue of nearly 15 billion yuan (US$2.1 billion), with panda-related hotel bookings more than tripling over the previous year over the holiday, according to the Sichuan government.

03:45

‘Sad to say goodbye’: South Korea’s first panda cub prepares for return to China

‘Sad to say goodbye’: South Korea’s first panda cub prepares for return to China

“[Pandas’] cuddly appearance can inspire impulsive buying from consumers, and the rise of live streaming since the pandemic has further increased their popularity, thus enhancing related economic behaviour,” said Lin Huanjie, dean of the Institute for Theme Park Studies in China.

On Chinese short video platform Douyin, fans of the bear have firmly established themselves – and their own cottage industries. Panda GunGun, an account with over 7 million followers, sells a variety of themed items including dolls, bags and blankets. According to data from the app, the account sold 190,000 items in July alone.

Other accounts have built large communities over a shared love of the bears. iPanda, a user that shares videos of famous specimens like Hua Hua, Fu Bao and Ya Ya, has built a follower base of over 4 million.

“They are accelerating the growth of local economies, contributing to job creation and attracting both domestic and international tourists, since they are tourism resources exclusive to China,” Lin said.

“Collectively, it is a 1 billion yuan per year business we are talking about, just in Sichuan,” he said.

By late February, shortly before her departure, sales of panda merchandise soared to 2.7 million items – a 60 per cent increase over the previous year – with roughly one in every 10 visitors purchasing at least one item, South Korean media outlet Chosun Daily reported in March.

Tokyo-born giant panda Xiang Xiang was no slouch, either, having generated an estimated economic contribution of about US$433 million over her six-year stay at the city’s Ueno Zoo. According to Kansai University professor Katsuhiro Miyamoto, as cited by the Chosun Daily, this was higher than the proceeds from Japan’s high-profile victory over the United States in the 2023 World Baseball Classic.