Shanghai Disneyland Construction Starts

The construction of the first Disneyland Park in the Chinese Mainland broke ground Friday in Shanghai, reports the Guangzhou Daily.

Covering an area of nearly 116 hectares, the third Disneyland compound in Asia and the sixth worldwide will include a theme park, two hotels, a lake, as well as a commercial complex.

The five operational Disney Parks are located in Los Angeles, Orlando, Paris, Tokyo and Hong Kong.

With a total investment of 24.4 billion yuan ($3.7 billion), the project is scheduled to be completed in five years. According to an agreement reached in 2009, the U.S.-based Walt Disney Corporation will hold 57 percent shares of the park, while the Shanghai Municipal Government occupies 43 percent.

With indirect investments expected to exceed 100 billion yuan during its construction, the park is expected to generate an annual output of 16 billion yuan in the city's service sector after it opens to the public.

But the construction triggered concerns over a further decline in the number of visits to Disneyland in Hong Kong. According to the Guangzhou Daily, losses that were incurred in the Hong Kong park mounted to 3.61 billion HK dollars between 2008 and 2010.

(CRIENGLISH.com April 8, 2011)