A letter of intent? Looks a little iffy to me - lol.
UPDATE 1-Disney in initial deal to build Shanghai park-paper
July 19, 2002 5:58:00 PM ET
(Adds expansion of Disney statement in paragraphs 5-6)
HONG KONG/SHANGHAI, July 19 (Reuters) - The Walt Disney Company (DIS) has signed a letter of intent with the thriving commercial city of Shanghai to build its third Asian theme park there, the Hong Kong Economic Times reported on Friday.
Citing unidentified sources, the newspaper said details were under discussion and construction of the Shanghai park -- to be built in the city's newly developing Pudong district -- would take less time than Disney's Hong Kong project.
There was no confirmation from Disney and a spokesman for the Shanghai city government declined to comment.
"Right now our priority is to successfully open Hong Kong Disneyland in 2005/06. We have made no definitive decisions or commitments at this time. We have always stated that two parks in China is a possibility in the future," said a Disney spokesman in Burbank, California.
Disney added it is in ongoing discussions with China about a number of potential project areas.
"We have a continuing dialogue with China about a variety of Disney initiatives that are part of our overall China strategy, including: television, motion pictures and consumer products, of which theme parks are only a part," the company said in a statement. "The Hong Kong Disneyland park continues to play a very important role in this strategy."
Sources familiar with the project said Disney had yet to decide with local authorities whether it would be in the capital Beijing or Shanghai, China's richest city.
A team from Disney's U.S. headquarters visited China last month, the sources said.
If the Shanghai park goes ahead, it would be Disney's third in Asia, after the planned Hong Kong theme park and Tokyo Disneyland, which opened in 1983.
Former Shanghai mayor Xu Kuangdi said before the Hong Kong deal was signed in 1999 his city would welcome a Disneyland, but current mayor Chen Liangyu has said that incomes in the city would need to rise further before it could support one.
WILL HONG KONG BE HAPPY?
The Hong Kong Economic Times report is certain to raise eyebrows in Hong Kong, which hopes its planned US$1.8 billion Disney park will be a magnet for visitors from mainland China, rejuvenate its flagging tourism industry, provide jobs and motor related sectors such as tourism and retail.
Many in Hong Kong fear another park on mainland China would mean too much competition, and all suggestions in the past that Disney may have a second Chinese park are anathema and have often triggered angry responses from businesses here.
Since clinching the deal in 1999, the Hong Kong government has had to defend itself against criticism that the deal it struck with Disney was too one-sided.
While taxpayers are forking out a HK$22.45 billion (US$2.9 billion) for the park and accompanying infrastructure, Disney will be investing only a fraction of that, or HK$2.45 billion.
And even before the goods have been delivered, the project has been dogged by problems.
Environmentalists have blamed it for severe water pollution problems that have surfaced since reclamation work began around the site of the park, which is to be completed by early 2006.
Fish farmers are clamoring for compensation and Hong Kong will have to cough up another HK$400 million to remove dioxin tainted mud from the site, which used to be home to a shipyard.
The Hong Kong government seemed to be in the dark about what could be going on on the mainland on Friday.
"We have not received any information from Shanghai that it will build such a park, but Disney has never ruled out building a second park in China," a government spokeswoman said.
The Hong Kong Economic Times said the central government in Beijing would ensure that Shanghai's Disney park will not open sooner than Hong Kong's. REUTERS
