Sarangel
<font color=red><font color=navy>Rumor has it ...<
- Joined
- Jan 18, 2000
From www.yahoo.com:
Hong Kong lawmakers will grill the government on Monday about recent media reports that The Walt Disney Company (NYSEIS - News) had signed a letter of intent to build its third Asian theme park in rival Shanghai.
The reports, which Disney has not confirmed, have set alarm bells ringing in this southern Chinese city, which fears its own US$1.8 billion Disney park may face too much competition after it is ready in early 2006.
Hong Kong newspapers reported last week that Shanghai's Disney park will be completed sooner but the central government in Beijing will only allow it to open after the one in Hong Kong.
Hong Kong is banking on the park to inject some life into its sagging economy and lure more tourists. The government pledged a whopping HK$22.45 billion (US$2.9 billion) in 1999 for the park and accompanying infrastructure while Disney is investing just HK$2.45 billion.
Lawmaker Lee Cheuk-yan said the government told legislators in 1999 it had an understanding with Disney that it would not build another park in China before the Hong Kong park was mature.
"But we don't know if that point was contractual (on paper). The government must explain this and how it views Disney now talking to mainland China about another park," Lee said.
Last week, Disney said it had made "no definitive decisions or commitments at this time" to another park in China but reiterated that it was a possibility in the future.
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.
A HONG KONG PROJECT THAT MUST NOT FAIL
Hong Kong, which is struggling to emerge from its second recession in four years, is hoping its Disney park will draw visitors from mainland China and create thousands of new jobs both at the park and in related tourism sectors such as hotel and retail operations.
Any talk of another park on mainland China has cast some suspicion on Disney and anger at Hong Kong's government, which already has to defend itself against criticism that the deal it struck with Disney was too one-sided.
"The Hong Kong government has dumped so much money on this and if Disney builds another in China, the attraction of Hong Kong's park will be diluted," Lee said.
"If there was a mistake in the contract, then the Hong Kong government must do something to remedy the situation. Maybe it has to renegotiate the deal with Disney."
