Economic Performance and Business Models in the Chinese Theatre Industry: A Comparison of Wuzhen Water Town and Huichang Theatre Village

The Chinese theatre industry, despite its rich cultural heritage, has been historically overshadowed by other entertainment forms and has faced challenges in adapting to modern market dynamics. This paper explores the economic performance and business models of the Chinese theatre industry through a comparative case analysis of two distinct tourist attractions, Wuzhen Water Town and Huichang Theatre Village. The research methodology includes a review of the industry's historical context, an examination of current economic trends, and the case study analysis of the two venues. The finding reveals that while the industry has shown growth and is gradually embracing commercialization, it still faces significant challenges, including economic sustainability, infrastructure development, and balancing authenticity with commercial interests. The case study highlights unique approaches each venue takes to address these challenges, with Wuzhen focusing on international festivals and Huichang Theatre Village aiming to be a year-round cultural hub. Both venues strive to innovate and adapt to modern audience preferences while preserving their historical and cultural significance. The Chinese theater industry is gradually emphasizing on market and commercialization, while it needs to find a balance between maintaining artistic and commercial success. By learning from the successful experiences of the West, the Chinese theater industry has the potential to achieve sustainable development and contribute economically and culturally.