China is set to announce a Disney theme park in Shanghai.
In addition to having hundreds of schoolchildren wave vivid red flowers to welcome United States President Barack Obama at the airport for his first state visit in mid-November, the Chinese government has also prepared a huge gift for this very special friend -- a $3.6 billion
Disney theme park contract.
Shanghai Mayor Han Zheng said Sunday that the city government will unveil its decision, as soon as this week, to build
Walt Disney's first theme park in mainland China.
"There is much to talk about this issue," Han told reporters on Sunday after the closing ceremony of 21st International Business Leaders' Advisory Council, adding "The Shanghai municipal government will soon hold a media briefing to announce the latest news on the Disney project."
A source familiar with the situation told Reuters last week that China's National Development and Reform Commission, the country's top economic planning agency, had already given approval to the project. The timing for the Shanghai government's announcement may coincide with President Obama's first state visit to China, from November 15 to 18. His first overnight stop is Shanghai.
China isn't approving the Disney project just to "give face" to President Obama, but to add to Shanghai's attraction as a tourist destination. At a press conference on Sunday, Han said there are still uncertainties and obstacles hindering Shanghai's recovery from the global financial crisis. "For instance, Shanghai's import and export contributed to 25% of China's total international trade, yet the trading figures of Shanghai have been tumbling to the negative zone in the past 12 months since last November," First Business News on Monday cited Han as saying.
Han stressed Shanghai should continue its transformation from a trading port to a service-oriented economy. The green light for Shanghai Disney will help Shanghai further develop its hotels and the tourism industry.
It has been widely reported that Shanghai Disneyland will be erected in Pudong, the newly developed area in Shanghai, and will cost an estimated $3.6 billion to build. A joint venture between
Walt Disney and local Chinese enterprises will be formed to run the theme park, whose first phase will be open in about 5 years.
Walt Disney has been negotiating terms and details with the Chinese government for Shanghai Disneyland since the two parties signed a Letter Of Intent in 2002. The project, however, was once put on hold as a result of strong opposition from
Hong Kong's government.
There's already a Disneyland in Hong Kong, and it is struggling. Hong Kong officials worried that a Shanghai Disney would further crimp its business.
Hong Kong Disneyland is owned and run by Hong Kong International Theme Parks, a company in which the Hong Kong government holds a 53% stake and Walt Disney has a 47% share.
Hong Kong Disneyland, the smallest of Disney's various theme parks around the globe, opened in May 2005. Thanks to insufficient space or attractions to draw repeat customers from Mainland China, the park missed its visitor target in each of the first two years.
Once Shanghai Disney opens, Hong Kong Disneyland may lose more of its mainland visitors to its Shanghai counterpart.
