Shanghai 'seeks final approval for Disneyland'
State Council approval for a Shanghai Disneyland will be sought next month, potentially paving the way for the mainland's first Disney theme park, sources say.
The proposed venture would be modelled after the Tokyo Disneyland deal, the sources said, which was struck at a time when the fortunes of the entertainment giant were relatively low.
Tokyo Disneyland, which opened in 1983, is owned and operated by Japanese leisure and tourism giant Oriental Land. Disney is paid a lot each month in royalty and management fees but has no equity stake.
Recent media reports have pointed to Shanghai Disneyland opening as early as 2012 at a cost of about 40 billion yuan (HK$45.8 billion), excluding the land. Disney has long stated that it is unlikely to open a park on the mainland before 2010.
'As you know, there is no deal and no announcement,' a spokesman for Disney said.
On the mainland, foreign direct investment in the construction and operation of large-scale theme parks is allowed under the Foreign Investment Catalogue. State Council approval is generally only required for such projects if the total investment is more than US$500 million.
Theme-park projects were removed from the 'restricted foreign-investment industries' category last December 1. Restricted projects are not necessarily off-limits to foreign investors but they may be subject to greater regulatory scrutiny.
Last week Disney-watcher Jim Hill wrote in his weblog: 'According to Imagineers that I've spoken with, Shanghai Disneyland will be the most Pixar-centric theme park on the animation planet,' referring to the computer-animation studio Disney bought two years ago for US$7.4 billion.
Proposed shows and attractions include having Toy Story characters Woody, Jessie and Bullseye 'riding herd' in Frontierland and a new Cars-themed Autopia. Captain Jack Sparrow will headline a Pirates of the Caribbean version of Adventureland and Fantasyland will feature Rapunzel and her tower, Mr Hill wrote. Rapunzel is a Disney movie scheduled for release at Christmas 2010. Pixar's movies have so far grossed more than US$4.5 billion worldwide.
Disney expert Dennis Speigel, president of US consultancy International Theme Park Services, said he was doubtful of the accuracy of the reported launch date for a Shanghai Disneyland. 'Global theme-park activity is down. From the viewpoint of Disney, it does not help with Hong Kong Disneyland's performance being what it is.'
Hong Kong's Disney park has seen disappointing attendance figures, complaints about a lack of major attractions and what appear to be mounting losses.
A theme park in Shanghai does not necessarily guarantee success despite the city's affluence. In the 1990s, Shanghai attracted numerous theme-park projects but all of them suffered from inadequate transportation links and quickly ran into financial difficulty. The US$50 million American Dream Park and German-themed Frobelland both opened in 1996 but soon closed.
