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Sandy Li

Walt Disney has decided against opening a theme park in Shanghai for at least eight years.

Analysts said the move by the US entertainment giant reflected Beijing's desire to protect Hong Kong's $22 billion Disneyland from a direct challenge. Tourism and hotel industry leaders welcomed the decision.

Walt Disney Asia-Pacific announced yesterday that 'in all likelihood, a second park in China would not open before 2010'.

It did not expand on its terse announcement, which appears to contradict its earlier market forecasts that a Shanghai venture could open shortly after Hong Kong Disneyland in 2005 or 2006.

The announcement added: 'Our immediate focus is on breaking ground for our first theme park in China in January 2003. We plan to open Hong Kong Disneyland in 2005/06.'

Irene Chan, Disney Asia Pacific's head of communications for Asia, said the timetable for the expansion plans was realistic.

'It is the first time we have given a timeframe [for the China programme] . . . I do not think there is anything special about it. We will continue our discussion with China to look for a potential second park,' she said.

However, Daiwa Institute of Research (Hong Kong) senior economist Xiao Mingjie said: 'It looks like political consideration will delay or even scuttle Walt Disney's proposed project in Shanghai. Beijing must have asked Shanghai to slow down the negotiations with Walt Disney . . . to protect Hong Kong's interest.'

He also believed the SAR government must have lobbied Beijing because it was widely expected that a theme park would open in Shanghai in 2006.

Disney's statement came just a day after its rival Universal Parks & Resorts, the theme park unit of Vivendi Universal SA, signed an agreement with the Shanghai municipal government to build a US$1 billion (HK$7.8 billion) theme park in Pudong.

The group said its first Universal Studios theme park in China, scheduled to open in 2006, would attract eight million visitors.

Legislator Howard Young, who represents the tourism sector, said: 'It [Disney's move] was a sensible decision because having two Disney projects so close to each other certainly will cause direct competition.'

But he warned that Hong Kong should not stop improving its competitiveness by strengthening its tourist attractions.

'We can also attract Disney-MGM Studios to come to Hong Kong,' he said.

Hong Kong Hotels Association vice-president Dan Lee said: 'Hong Kong will benefit from this decision.'

The Hong Kong Tourism Board said: 'China is a huge country with room for more than one park.'

A spokesman reiterated that tourists from Southeast Asia, Taiwan, Singapore, Thailand, Malaysia, Australia and New Zealand would be interested in visiting Hong Kong's Disneyland.



Disney puts the brakes on theme park for Shanghai