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 |  Reuters -
Nov-05-2009Shanghai to own 57 pct of new Disney park -paper(topic overview)
CONTENTS:
- The breakthrough comes just two weeks ahead of a scheduled trip to China by U.S. President Barack Obama, a visit analysts had expected to help spur a decision on the park. (More...)
- China Daily reported that several state-owned firms in Shanghai would form a joint venture with Walt Disney to invest in the project, with the SOEs collectively taking a 60 per cent stake in the venture. (More...)
- Gaining Shanghai A shares outnumbered losers by 557 to 311 as turnover remained active at 164 billion yuan ($24 billion), although that was down from Tuesday's 170 billion yuan. (More...)
- '''As a Shanghai native, I firmly oppose the building of the Disney park in my hometown,''' says one post on eastday.com, a news portal run by the Shanghai government. (More...)
- "We're not worried because the whole market is growing bigger." (More...)
- Disney's breakthrough comes just two weeks ahead of a scheduled trip to China by U.S. president Barack Obama, a visit that analysts had expected to help spur a decision on the park. (More...)
- Previous media reports said the first phase of the Shanghai Park, which is expected to be located in Chuansha township, will cover around 4 sq km and cost about $3.6 billion. (More...)
- Secretary for Commerce and Economic Development Rita Lau insisted China could accommodate two parks. (More...)
- Last weekend, Shanghai's mayor, Han Zheng, told reporters the central government had issued the required approval and that the city would be making an announcement soon. (More...)
- The Shenzhen Composite Index for China's smaller second exchange added 0.7 percent to 1,112.35. (More...)
- Costs for the project will exceed $3.6 billion and will include the traditional Magic Kingdom and other Disney attractions. (More...)
- In Hong Kong, the benchmark Hang Seng Index.HSI was up 1.63 percent, or 346.67 points, at 21,586.73 at midday. (More...)
- Tourist spending now accounts for about one-quarter of Shanghai's total retail sales, and the coming Disneyland should lift that ratio further, Colliers said. (More...)
- Beijing's approval clears the way for the Burbank media giant and Shanghai to work out the details. (More...)
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The breakthrough comes just two weeks ahead of a scheduled trip to China by U.S. President Barack Obama, a visit analysts had expected to help spur a decision on the park. The deal has been seen by some as a feel-good bilateral story, highlighting U.S. cultural influence and an investment that does not entail U.S. manufacturing job losses, while China gets a boost to its leisure sector and to domestic demand as it tries to trim its dependence on exports. Disney will be hoping the Shanghai park, with an estimated price tag of $3.6 billion, will fare better than its Hong Kong property, which has struggled with lower-than-expected attendance and financial losses since it opened in 2005. Disney, Time Warner and News Corp have surprisingly little to show for their years of effort and extensive investments in China. "I wouldn't say this is a one-off gain," said Vivek Couto, executive director of Media Partners Asia, commenting on the deal's significance to the broader foreign media effort to gain a foothold in China. "But it's in a non-sensitive space. It's a theme park. It's got nothing to do with television content that can be politically sensitive or competitive with other major Chinese companies in the space." [1] Dennis Speigel, president of International Theme Park Services Inc., a consultant to theme park developers, said the latest venture was a smart move by Disney to stake a claim in Shanghai even though a theme park wouldn't be developed for six to eight years. Speigel said Disney has had some problems adjusting its product to foreign audiences. He said Mickey Mouse didn't appeal much to Disney guests at the Hong Kong park until the company researched Chinese media and mainstream culture and found he would be more appealing without a mouth. He also said Disney has realized that the Hong Kong Disneyland is too small and confining and has been upstaged by a nearby marine-themed park called Ocean Park Hong Kong. Speigel said that by winning approval from the Chinese government now, Disney will be in a position to thrive in Shanghai "when they are ready and the time is appropriate." Gene Jeffers, executive director of Themed Entertainment Assn., a trade group of designers and builders of theme parks and special events, said he was optimistic that Disney could succeed in Shanghai. "Something like this is good for our industry," he said. dawn.chmielewski@ latimes.com hugo.martin@latimes.com Nicole Liu of The Times' Beijing Bureau contributed to this report.[2] The company and the Hong Kong government announced a major expansion in July, in hopes of boosting attendance by increasing the number of theme areas to seven from four over the next five years, tackling criticism that the world's smallest Disneyland didn't offer enough attractions. James H. Higashi, a principal of Management Resources in Tustin, a consultant to the theme park industry, noted that Shanghai was one of the most populated regions in the world, offering Disney a prime location not only to draw visitors but also to market other Disney products such as movies and consumer products to a huge portion of China. "From a strategic standpoint, it's one of the best markets in the world," Higashi said. He said Disney theme parks have had trouble adjusting to the foreign markets -- the Paris operation is saddled with huge debt and the Hong Kong location has operated at a loss -- but he expects the company to do well in the long run, given Shanghai's rising reputation as one of the world's premier cities, both in culture and business.[2]
The Chinese central government's approval of Walt Disney Co.' s planned theme park in Shanghai could pave the way for one of the largest foreign investments ever in China, and marks an important milestone for the U.S. entertainment company's effort to extend its brand in the world's most populous nation. Chinese authorities on Wednesday confirmed an announcement by Burbank, Calif. -based Disney that it had won Beijing's endorsement for its project after years of planning. If it is completed, Shanghai Disneyland would offer the company a significant presence in a market that, despite its size, has numerous hurdles to the distribution of.[3] "The Project Application Report (PAR) for a Disney theme park in the Pudong district of Shanghai has received approval from the relevant authorities of the central government of China," the company said in a statement on Tuesday. "China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for The Walt Disney Company in mainland China," Disney president and CEO Robert Iger said in the statement.[4] The approval by the National Development and Reform Commission will allow Shanghai, China's biggest city, and Disney to work on final details for the amusement park, to be located in the city's eastern Pudong district. "China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for The Walt Disney Company in mainland China," Robert A. Iger, president and CEO of The Walt Disney Company, said in a statement. It said the initial phase of the project would include a "Magic Kingdom-style theme park with characteristics tailored to the Shanghai region."[5]
LOS ANGELES, Nov. 3 (Xinhua) -- Plans for a Disney theme park in Shanghai were given preliminary approval by China's central government, Disney announced Tuesday. "China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for the Walt Disney Company in mainland China," said Robert A. Iger, president and CEO of The Walt Disney Co.[6]
It's been in the works for more than a decade, but The Walt Disney Co. (NYSE: DIS ) finally got the approval it needed from China's government to build a theme park in Shanghai. Disney's fourth park outside the United States will be the first on mainland China, giving the company a new avenue to market its popular properties in the restriction-laden Red Dragon.[7] Walt Disney Co. (NYSE: DIS) won the government approval to build a theme park in Shanghai, thus giving it access to consumers in mainland China's richest city. Walt Disney Co. ( DIS ]] DIS ) stock surged past the 20 days and 50 days MA to $28.7 on Wednesday on the back of this news, which augurs well for Walt Disney Co. ( DIS ).[8]
Villagers watch TV journalists broadcasting from the empty field in Shanghai's eastern Pudong district where Disney plans to build its first theme park in mainland China. (Andy Wong/Associated Press) China's planning agency has approved the Walt Disney Company's proposal to build one of its massive amusement parks in the bustling city of Shanghai.[9] Some residents were long ago moved off farmland in Chuansha, a part of Pudong district near the city's main international airport, to make way for the theme park. Disney has gradually expanded its presence in mainland China after opening a theme park in Hong Kong in 2005 and now has offices in Shanghai, Beijing and Guangzhou.[10] Officials in Shanghai, mainland China's main financial and commercial hub, are forecasting a boom in tourism and job creation thanks to the theme park project ''' an initiative Disney has been pursuing for about a decade. The company already employs hundreds of Chinese staffers at its offices in Shanghai, Beijing and Guangzhou and opened a theme park in Hong Kong in 2005. While the Hong Kong park has suffered from disappointing attendance since its opening, officials there downplay any competition with the prospective new facility in Shanghai.[9] Disney's foothold in mainland China comes after a decade of negotiations and will cost U.S. $3.6 billion, according to Hong Kong newspaper Wen Wei Po. The expansion targets the wealth of China's middle class and the fastest growth of any major economy as Burbank, California-based Disney suffers from lower spending at its U.S. theme parks, tumbling ad sales and falling DVD revenue. The park will include a Magic Kingdom-style theme park with characteristics tailored to the Shanghai region, Disney said in its statement. It will occupy an area of about 7 square kilometers (1,700 acres), the state-run Xinhua News Service said.[11] Disney and the Shanghai municipal government jointly submitted plans in January to build a $3.59-billion park to open as early as 2014. It would be the entertainment giant's fourth theme park outside the U.S., after Paris, Tokyo and Hong Kong -- and the first in mainland China, the fastest-growing mass market in the world.[2] Shanghai's city government issued a brief statement announcing the approval. Disney has gradually expanded its presence in mainland China after opening a theme park in Hong Kong in 2005 and now has offices in Shanghai, Beijing and Guangzhou.[5]
The Shanghai park will join Hong Kong Disneyland to become Disney's second in China and third in Asia, including Tokyo's Disneyland. The move is seen in part as a nod to U.S. President Barack Obama who will bring a large U.S. trade delegation to China when he visits for the first time in mid-November. Disney have long had a presence in mainland China, however until now this has been mainly in introducing characters to the Chinese population via branding, TV serials and a spin off division in animation. Disney currently has a twelve hour a week exposure in China through their " Mickey Mouse Clubhouse " program, which is available in Chinese on selected pay TV channels on the mainland.[12] Disney in Hong Kong, which now is run by a Chinese managing director and has been working to adapt to local tastes, reiterated in a statement on Wednesday that it is planning a $452 million expansion. It still expects to draw visitors from the greater Pearl River Delta region, home to roughly 60 million people in Guangdong province, Macau and its surroundings, although population estimates vary. (Roughly 50% of visitors to both Ocean Park and Hong Kong Disneyland come from mainland China.)[13] "We at Hong Kong Disneyland are focused on getting our exciting project underway as soon as possible," he said, referring to an expansion project on Hong Kong Disneyland. Margaret Fong, commissioner for tourism, said she was confident that the Hong Kong Disneyland will remain attractive and competitive, adding that the Hong Kong park attracts visitors from not only mainland but also southeast Asia and other places. Local business people and visitors said they expected the desire for the Chinese mainland visitors to visit Hong Kong Disneyland to be reduced but the Hong Kong park, with some unique attractions, should remain attractive to visitors from nearby.[14]
Recalling the past few years, the individual visit scheme did spur the demand of domestic demand, hotel and tourism services. How many people visit Hong Kong because of the Disney theme park? It is believed the entrance figures of the theme park may provide us the answer. Shanghai Disneyland will soon be built; does it mean that all stocks with the name "Shanghai" can be benefited? It is still too early to say if the new theme park can to attract tourists or not, but it is believed that this can enhance Shanghai's status, and thus can help to attract more tourists. This can also stimulate the demand of domestic demand, construction, infrastructure, hotel and travel services needs, beneficial those companies engaged in relevant businesses.[15] The company also incorporated local customs. (Serving alcohol at Disneyland Paris helped turn it into a financial success.) The coming theme park in Shanghai represents a new way for Disney to stoke demand for its properties without much government scrutiny. Unlike Western nations that consistently snap up the many forms of Disney media, including movies, video games and television shows, China keeps a tight grip on the media crosses its borders. Only 20 foreign films are allowed into China each year, reducing Disney's chances of showing its popular movies there. Disney's Shanghai park "gives Disney an opportunity to monetize its brand without necessarily having to produce filmed content," David Bank, an analyst with RBC Capital Markets Corp. told Bloomberg. A theme park sans regulatory hurdles is "the real key to making money in China for the media companies," he added.[7] As the Shanghai Disney story develops, it is worth keeping the connections between the World'''s Fair and theme park traditions in mind. This is especially true given that the Expo is being promoted within China as an event that carries into a new century the tradition of the 1893 White City that Disney '''s father helped build'''though an early plan to construct the world'''s biggest Ferris Wheel by the Huangpu River near the world'''s tallest building has thankfully been dropped. This is one case in which, at least so far, the most interesting quote I'''ve seen has come not from any foreign news report but from a Shanghai Daily story. The quote, attributed to Huang Renwei of the Shanghai Academic of Social Science, says this of Shanghai Disneyland: '''It will be like a never-ending Expo.'''[16] SHANGHAI: Mickey Mouse and friends are on their way to Shanghai after long-awaited plans for a Disney theme park near China's financial hub got the thumbs-up from central authorities. With a new Disneyland theme park slated for their Shanghaineighborhood, workers, including this woman at a garment factory in Zhaohang village, in Chuansha township, wonderwhat the development will mean for them.[17]
TV journalists doing news broadcasting on an empty field which plans for a Disney theme park at the eastern Pudong district of Shanghai, China, on Wednesday, Nov. 4, 2009.[5] SHANGHAI, Nov 4 (Reuters) - The Shanghai government said on Wednesday that it is in detailed talks to build a world-class Disney theme park in the Pudong district of Shanghai, after getting the nod from the central government in late October.[18] BEIJING, Nov 5 (Reuters) - An investment company controlled by the Shanghai city government will own a majority stake in a planned Disney theme park that won key government approval this week, the People's Daily reported on Thursday. Shanghai officials on Wednesday announced that the park had gotten key central government approval ahead of a planned visit by U.S. president Barack Obama this month. They did not release a shareholding structure for the park, and the plan still faces more detailed talks between Disney and Shanghai officials.[19] Shares that may benefit from plans for a Shanghai Disney theme park or that own land in the Pudong area where it will be built bucked the market's uptrend on Wednesday, hit by profit-taking after the long-awaited deal received official approval from the central government.[20] Rumours that official approval was imminent had lifted the shares in recent days. Walt Disney Co ( DIS.N ) and the Shanghai government said on Wednesday they were in detailed talks on a deal to build a theme park in Shanghai after getting the nod from the central government.[21]
Walt Disney has been given approval to open a theme park in Shanghai -- allowing the Magic Kingdom to thrive in the Middle Kingdom. Communist Party mandarins have ended years of negotiations and suspense by allowing Disney to build its first park in mainland China.[22] A survey on eastday.com suggests a lack of enthusiasm too. The Burbank, Calif., entertainment giant and the Shanghai government announced that they have central-government approval to build mainland China'''s first Disney theme park and resort, which means contracts to build can now be hashed out.[23]
The Chinese central government approved a broad agreement, outlining the legal and financial framework for the park. The decision clears the way for Disney and Shanghai to work out detailed plans for building and operating the park, addressing such issues as subway and road access to the park as well as finances. "China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for the Walt Disney Co. in mainland China," Disney Chief Executive Robert Iger said in a statement.[2] Disney president and CEO Robert Iger said in a statement that China was one of the most dynamic, exciting and important countries in the world, and the approval marked "a very significant milestone" for the Walt Disney Company in China's mainland. The California-based company had its theme park business affected by the economic downturn. It reported a 19 percent year-on-year fall in profits from its parks and resorts for the fiscal third quarter in July.[24] Disney president and chief executive Robert Iger yesterday said: "China is one of the most dynamic, exciting and important countries in the world, and this approval marks a significant milestone for Disney." He said the initial phase of the project would include a "Magic Kingdom-style theme park with characteristics tailored to the Shanghai region".[25]
HONG KONG (Fortune) -- China's announcement on Wednesday that Walt Disney could go ahead with its long-planned theme park in Shanghai raised a few eyebrows in Hong Kong. That's because Disney's first foray into the China market, via Hong Kong in 2005, has been tepid at best -- and embarrassing at worst.[13] Here's to unholy matrimony: Disney announced yesterday that China has allowed them to move forward with construction of a new park in Shanghai, its first new resort since 2005's Hong Kong Disneyland and its third in Asia. You thought the fight over EuroDisney was good? Wait till you see the Chinese version of "It's A Small World."[26] Secretary for Commerce and Economic Development of the Hong Kong Special Administrative Region (HKSAR) government Rita Lau said Wednesday that the planned Shanghai Disneyland theme park and the existing Hong Kong Disneyland would complement each other. She said the Chinese economy was growing fast and the Chinese market, with its huge potential, would be big enough to sustain two Disneyland theme parks.[24] Secretary for Commerce and Economic Development Rita Lau said the two parks could even cooperate with each other in the future to tap the Chinese market. The Chinese economy is growing fast and the Chinese market, with its huge potential, will be big enough to sustain two Disneyland theme parks, she said, adding that the tourist industry in Hong Kong can cooperate with businesses in the region to develop multi-destination products.[14]
The scale of development is expected to reach 400 hectares, which is more than double the Hong Kong Disneyland. It will be Asia's largest Disney theme park, and expected to be completed in 2014.[15]
Disney's theme park in Hong Kong has suffered disappointing attendance, raising questions over the prospects for success of the Shanghai park. The plan is popular among local residents, especially those who might end up profiting from its construction.[5] Visitor numbers fell 20% in the second year to just 4 million, and grew to 4.5 million visitors in the 2007-2008 fiscal year, still far below the numbers it hoped to draw. Why? Because Disney ( DIS, Fortune 500 ) failed to gauge local tastes, opened with a park that was too small to meet the grandiose expectations of its clientele, made some public relations mistakes early on, and took too long to adapt to local food, culture, and tastes, according to Allan Zeman, the chairman of the rival Ocean Park theme park in Hong Kong.[13] Things didn't get much better in the following two years, as visits dropped to 4 million and 4.5 million, respectively. Nearby Ocean Park in 2008 enjoyed its fifth straight year of more than 5 million visitors, Fortune magazine reported. It's generally accepted that Disney's shortcomings in Hong Kong and its other international locations were due to a failure to adapt to the local cultures.[7]
After years of missteps, Disney's annual visitors in Hong Kong are still about 25% below original targets set at the park's opening. In its first year, Disney's Hong Kong park attracted 5.2 million people, below its goal of 5.6 million.[13] A densely populated area doesn't necessarily make for an economic slam-dunk. Take Disneyland Hong Kong, for instance: It's easily accessible to about 60 million people in the Guangdong province and burgeoning Macau, but it drew just 5.2 million people in its first fiscal year, 2005-2006 short of Disney's goal for 5.6 million visitors.[7]
For Shanghai, Disneyland could keep tourists coming after the curtain falls on the 2010 World Expo. Meanwhile Disney will hope the park, with an estimated price tag of $3.6bn, will fare better than its Hong Kong property, which has struggled with lower-than-expected attendance and financial losses since it opened in 2005. Disney is pumping a further $465 million into the expansion of its site in Hong Kong but commentators don't expect the two parks to compete.[25] Disney's upcoming sixth park is planned for China's Pudong district and has an estimated price tag of $3.6 billion. The company hopes the investment will fare better than its Hong Kong counterpart, which has struggled with flailing attendance and financial losses since 2005.[27] The People's Daily, the Communist Party's most important newspaper, said on Thursday that an investment company owned by the municipal government would hold 57 percent of the park, while Walt Disney Co. ( DIS.N ) would take 43 percent. It cited informed sources. It is expected that the costs of acquiring land and moving existing residents will reach 24 billion yuan ($3.52 billion), in line with the cost of a park in Hong Kong that has struggled with lower-than-expected attendance since it opened in 2005.[19] Datang Telecom Technology Co. advanced 8 percent to 12.55 yuan, while Eastcompeace Smart Card Co. leaped by the daily 10 percent maximum to 14.29 yuan. Shanghai-based companies ended mixed after The Walt Disney Co. announced Wednesday government officials have approved its plans to build a theme park there.[28] Beijing has approved plans to build a Disney theme park in Shanghai, a major milestone in the more than decade-long effort by Walt Disney Co. to dramatically expand its reach into China.[2] SHANGHAI — China's planning agency has approved plans for a Disney theme park in Shanghai, the Walt Disney Co. said Wednesday, a major step toward setting a deal for the long awaited project.[5]
SHANGHAI/LOS ANGELES (Reuters) - The Walt Disney Co's breakthrough deal to build one of its signature theme parks in Shanghai marks a significant advance for Western media and entertainment firms trying to crack a tough China market.[1] WALT Disney was yesterday granted permission to build its first theme park in mainland China in a move that could open the door for other western entertainment and media firms trying to crack Asian markets.[25]
It'''s a small world after all. After a 20-year negotiation, Walt Disney Company and the Chinese government in Beijing agreed to build a Disney theme park in Shanghai, which will be a cultural and financial milestone for both parties.[29] The company had agreed the framework for the deal to build the theme park in Shanghai with the local government. In the past, Shanghai's mayor has described Shanghai and Disney as like two lovers who know they're in love with each other but are finding it hard to decide when exactly to get married. That was because the deal needed Beijing's approval. This was the biggest hurdle the company had to clear, so the fact that they have achieved it means the park is all but certain to be built.[30] The PAR approval, the company said, will allow Disney and its Shanghai partners to "move forward toward a final agreement" to build and operate the "Magic Kingdom-style theme park with characteristics tailored to the Shanghai region." No estimate was provided for the upcoming project nor time frame for its commencement.[4] The approval paves the way for Disney and its Shanghai partners to nail down a final agreement, detailing the construction and operation of the park, the company said. The first phase of the project will include a "Magic Kingdom-style theme park with characteristics tailored to the Shanghai region and other amenities consistent with Disney's destination resorts worldwide", the company added in its statement.[17]
Upon completion of the final agreement, the project's initial phase would include a Magic Kingdom-style theme park tailored to the Shanghai region, along with other amenities consistent with other Disney parks. Disney said that its first animation was shown in China in the 1930s.[6]
China's key stock index was up 0.6 percent at midday, but shares that may benefit from the building of a Shanghai Disney theme park were hit by profit-taking after the government approved it.[21] Shares that may benefit from plans for a Shanghai Disney theme park or that own land in the Pudong area where it is expected to be built fell after Beijing gave the official nod to the project.[21]
"Oh that's great!" said a local resident of Chuansha town when told of the project's approval. He would give only his surname, Cai, out of fears that his comments might affect negotiations with local officials over compensation for his resettlement. "The Disney park would make this area into a whole new world," Cai said. Associated Press Writer Min Lee in Hong Kong and researcher Ji Chen in Shanghai contributed to this report.[5] Last spring, Mayor Han said on the sidelines of the national legislative session that the two sides were getting down to serious negotiations. He compared Disney and Shanghai to "lovers, still in love but having a hard time deciding when to get married," the Shanghai newspaper Oriental Morning Post quoted him as saying. Shanghai's leaders are keen to develop this former bastion of Chinese industry into a global services and financial center, and building a Disney park would create jobs and be a key draw for tourism. Disney had long insisted it was focusing on building up its park in Hong Kong — a Chinese territory.[5]
The Jinjiang Amusement Park, which has been running roller coasters and Ferris wheels for about 25 years and is 10 times smaller than Happy Valley, also said it is not concerned about the heightened competition. "There should be a place just for parents to take their children to have a relaxing day out," said Ge Yunkui, deputy general manager of the park. The Hong Kong Disneyland Resort recently said in Shanghai that it also won't be affected much by a Shanghai Disneyland because it draws most of its customers from south China, Southeast Asia and Hong Kong.[31] The Shanghai Disneyland park, which has been on the drawing board for the past twelve years, had originally been passed over in preference to Hong Kong.[12] "I'm thrilled to hear the news," said Lin Fuli, a 23-year-old student from Shanghai Institute of Foreign Trade. "I've been looking forward to this ever since my first visit to the Hong Kong park two years ago." Lin said the Hong Kong Disneyland was smaller than she hoped and she expects the Shanghai one to be bigger.[17] McCord from the real estate services firm Jones Lang LaSalle agreed. "Similar to Hong Kong (Disneyland), the park will likely be a one-day event, or day trip, during a multi-day stay in Shanghai for most tourists," he said. "The tourists who come to Shanghai for Disneyland will also visit traditional tourist spots in the city, and retail development around those places, as well as the traditional shopping clusters in the city, will definitely benefit."[32]
The Hong Kong government, which owns a majority stake in Hong Kong Disneyland, tried to downplay the prospect that the new Shanghai park would draw visitors away.[5] Hong Kong business people have said the number of tourists from the mainland would fall as Disneyland visitors would be drawn to the Shanghai park, but the Hong Kong park, with some unique attractions, should remain an attraction.[24]
The new park would be Disney's sixth -- in Asia it already has a presence in Tokyo and Hong Kong. A spokeswoman said: "From our point of view the Hong Kong and Shanghai parks are not competitors, they're complementary.[22]
Reference to the case of Hong Kong, the Hong Kong Government officially approved to build the Disney theme park in 1999, the park commenced in 2003 and completed in 2005.[15] The proposed theme park would compete with Disney's Hong Kong resort, which opened in 2005.[11]
Talks about the theme park have been ongoing for almost a decade, and the newly-approved park will be bigger and provide more direct access to the local market than its Hong Kong location, which residents of mainland China need special permission to visit.[33] Local media reported last week citing unidentified sources that the visit of United States President Barack Obama to China from Nov 15 to 18 could accelerate the Disney theme park's landing in Shanghai.[34] WASHINGTON — China has given its thumbs up to building a multi-billion dollar Disney theme park in Shanghai, the Walt Disney Co has said.[4] Shanghai will be home to the most ambitious Disney theme park in the world if plans approved by China's National Development Commission go ahead.[35] China's planning agency has approved plans for a Disney theme park in Shanghai.[10]
Disneynophiles will need to update their passports as Disney says China approved Shanghai theme park.[36]
Land to be auctioned today in Chuansha for the Disney project is likely to break through 10,000 yuan per sq m, National Business Daily reported, citing Zhao Yuchuan, a manager from real estate agency Fangfang based in Shanghai. Shanghai Mayor Han Zheng said on Sunday that the city will hold a press conference as early as this week to talk about details of the theme park, without elaborating on whether the park had been approved by the central government.[34] THE announcement yesterday by Shanghai government that the city won state approval for a Disneyland in Pudong New Area immediately pushed land prices around the theme park's future site to record highs - even above the expectations of most industry analysts.[32] SHANGHAI, Nov 4 (Bernama) -- China's central government has officially approved the Shanghai Disneyland Project, the Shanghai municipal government announced Wednesday. It will take another five years for the park's first phase of construction to be completed, China's Xinhua news agency quoted a spokesman for the Pudong New District government as saying.[24] SHANGHAI (AP) -- China's National Development and Reform Commission will allow Shanghai, China's biggest city, and Disney to work on final details for an amusement park, to be located in the city's eastern Pudong district. The news was met with general happiness by many local residents that own their land and hope that the buyout, which is to be assessed in December, will be generous.[10] Government approval came down this week allowing Shanghai -- China's biggest city -- and Disney to work on final details for the amusement park, to be located in the city's eastern Pudong district.[37]
While the area earmarked for Disney -- in the Pudong district of Shanghai -- has yet to be defined and is still to be negotiated over the next few months, according to the Shanghai government, it is expected to be much larger than the space allocated in Hong Kong.[13]
Paul Tang, chief economist at Bank of East Asia, said: "Visitors from Guangdong and southern China will still find Hong Kong more convenient, while Shanghai will attract visitors from northern and eastern China." As well as its Hong Kong site, Disney has offices in Shanghai, Beijing and Guangzhou.[25]
The success of Ocean Park by contrast proves just how much Disney has to learn about catering to Chinese clientele. Zeman, a Canadian businessman who has lived in Hong Kong for 40 years, put in place a major development and renovation project at Ocean Park when he heard Disney was coming to town. His attendance numbers have trumped Disney's -- earning Zeman the nickname "The Mousekiller" and accolades including case studies by Harvard Business School.[13] A CNN Money article offers some suggestions for Shanghai Disneyland based on Ocean Park, a family attraction currently eating Hong Kong Disneyland's lunch thanks to Canadian chairman Allan Zeman.[26] "Unlike Hong Kong Disneyland, we expect the park in Shanghai will turn profit quickly," said Qi Xiaozhai, director of Shanghai Commercial Economic Research Center.[17]
Government officials in Hong Kong insist the Shanghai park will not be a competitor.[30]
The final approval was given from the government officials today in Beijing to allow a park to be built by the Walt Disney Corporation. According to the BBC and other major news sources, the Disney Park in Shanghai is well on its way to becoming reality as it was approved last night. The initial step for the latest edition to the Disney Resort family, this Disney park has been in the planning stages for over 10 years and the projection date of completion is 2014.[38] Government officials didn't disclose the use of the expropriated lands, but Shanghai Securities News indicated that the lands in the announcement would be used for the Disney theme park.[34] Shanghai Municipal Government announced it has been approved by relevant departments to build a Disney theme park.[15] GOOD DAY FOR: A cultural revolution, after Disney got permission to build a theme park in Shanghai, China's financial capital. BAD DAY FOR: Shifting into reverse, after General Motors infuriated Germany and Russia by backing out of a deal to sell its Opel subsidiary to auto-parts maker Magna and Russian bank Sberbank.[39] China may or may not need a Disney theme park, but Disney's aim is that the Shanghai location will help create a mighty want for Disney products among the country's population.[40]
The post adds that foreigners are too broke to visit, and Chinese can'''t afford it. In response to the question, '''What do you think a Disney theme park would bring to Shanghai?''' about 40% said more weekend fun, 30% said they would go if it weren'''t too expensive and almost 20% said they wouldn'''t attend because there are too many things to do already in Shanghai.[23] The Disney company has got the green light from the Chinese government to build a theme park in Shangai. It comes after years of delicate negotiations and marks a great leap forward for Western media businesses trying to break into the sensitive Chinese popular culture market.[41] Wednesday's government approval for the theme park caps years of on-off talks between Disney and Chinese authorities, who are wary of too much foreign influence in the highly sensitive sectors of media and popular culture.[1]
As Depp, aka, Captain Jack Sparrow makes appearances throughout the ride, and then talks so provocatively right before the end, the connection to the movie is not subliminal advertising--the type where an image triggers off our subconscious. Nope, by the time we climb out of the ride at the gift shop, it's no surprise to see shelves laced with every sort of Pirates of the Caribbean merchandise that has ever been cranked out. (Ironically, most of it is probably cranked out in China.) There's no other way to end this particular ride but to push on through the gift shop, not the easiest thing to do without a purchase when one has a child in tow who now has Captain Jack Sparrow on the brain. Disney is hoping that the Chinese families who fork out the money to enter its theme park will leave wanting more Disney.[40]
Like all examples of the creeping co-option of other cultures by American mass entertainment, the notion of a Chinese Disney fan base tickles our fancy. Will it be a success, considering Hong King Disneyland is a constant underperformer and Disney theme parks overall have been pinched by the global economic downturn? Surely it's bad news for the planned Marvel - Disney park in Dubai, originally scheduled to open in 2011 but whose details are a complete mystery compared to this new venture.[26] Reports indicate the new 1,000-acre park will cost Disney $3.6 billion (24.5 billion yuan). Disney's theme park business is second only to its media arm, and saw its profit decline 19% to $521 million in the second quarter as consumers curbed their spending.[7] With 1.5 billion people in China, Disney is hoping that the big bucks it will cost to dazzle the multitudes will pay off in other avenues. As anyone who has ever been to a Disney property knows, the theme park is not just a way to be wowed for a day or two; it's a gateway into other Disney habits.[40] Disney has about 5,000 branded locations selling merchandise across mainland China and hopes the presence of a theme park will further boost sales to a population of 1.3 billion.[30] Mickey Mouse looks set to come to mainland China at last after Disneyland gets approval to build a theme park in the country's largest city.[35]
The area will have a mix of shopping areas, hotels, and a theme park much like the Magic Kingdom, and will take up 1,000 acres of Shanghai'''s Pudong District. It will be larger than Disneyland in Anaheim, California, and similar to those in Paris and Tokyo.[29] Earlier media reports said the $3.5 billion theme park will cover an area of 10 sq km, to be located at the east bank of Huangpu River, bordering Pudong district's Chuansha town.[34]
Some residents were long ago moved off farmland in Chuansha, a part of Pudong district near the city's main international airport, to make way for the theme park.[5]
At 1,700 acres, the planned park, in the city's Pudong district, will be slightly bigger than Original Flavor Disneyland but resemble the Magic Kingdom of Walt Disney World.[26] News of Disneyland's arrival in Shanghai received a mixed reception from local people in the Pudong district, some fearing homes and farms might be cleared to make way for the park.[25]
Approval of the Project Application Report would enable Disney and its Shanghai partners to move toward a final agreement for construction and operation of the park and begin preliminary development work in Shanghai's Pudong area, the company said in a news release.[6] The new Shanghai park would give Disney access to 300 million people who live within a day's travel of the city, a sprawling, affluent and modern metropolis of more than 16 million people. Perhaps more important, however, it would secure a beachhead for Disney to sell its products and wield its brand in a market that has tightly controlled the inflow of American entertainment through restrictions on the number of movies allowed in mainland theaters and programs beamed through television channels.[2] For the Chinese government, the hope is that Disney in Shanghai will provide tens of thousands of jobs for people who are in need of viable employment. Because it is possible to teach an old dog new tricks sometimes, this Disney park will incorporate Chinese history and stories into some of its attractions.[40] Tianya quoted one person saying, '''Is there anything wrong with the Disney Park resolving the employment problem for thousands of people in Shanghai?''' ( in Chinese ).[23]
What'''s the trade? 80 million people will live within 3 hours of Disney'''s Shanghai theme park, says Joe Terranova.[37] The project would "include a Magic Kingdom-style theme park with characteristics tailored to the Shanghai region and other amenities consistent with Disney's destination resorts worldwide," Disney said.[42] Speculation about a Disney theme park in Shanghai has been circulating for years.[34] Ocean Park was something of a run-down dump before Disney came to town. The first thing Zeman did to the local amusement park was give his baby a new coat of paint. Then he set to work, hiring a management team with years of U.S. theme park experience. He created new rides and attractions, adding four live pandas, a maze-like jellyfish aquarium, and other real-life animal attractions -- developing a park akin to Sea World and Six Flags combined.[13] "Ocean Park is more fun Disneyland is more for kids," Ocean Park visitor Frankie Tong told The New York Times today (Wednesday). " Disneylands are more or less the same in places all over the world – Disney is more American." Disney's new leadership, under the direction of Chief Executive Officer Bob Iger changed this unofficial policy, adapting to the uniqueness of local markets and partnering with locals.[7]
According to the New York Times, the park has been in the works since the 1990s when a mayor of Shanghai visited Disneyland in Anaheim and could take up to 6 years to build.[26] I've been to Disney Tokyo and I would go to Shanghai.' Neilson isn't alone in wanting to see other Disney parks, guests are buzzing about the possibilities of a new Disney Park hankering to get the opportunity to visit even if it is a few years off.[38] Analysts see the move as an important step forward for Disney and other Western media firms to make inroads into the vast and untapped Chinese media and entertainment market. "They've been laying the groundwork for a park for many years by exposing the population to Disney properties, film, TV and merchandising and adding a physical presence in the form of a park would really complete and add to the value chain in China," said Christopher Marangi, senior analyst with Gabelli and Co in New York.[1] Disney has said that the Shanghai park will be a Magic Kingdom with Chinese characteristics -- including Chinese food, a ban on characters wearing green caps (a sign in China of an unfaithful spouse), and feng shui experts making sure everything is positioned to bring good luck and prosperity.[22] The South China Morning Post on Monday quoted an unnamed Chinese government official who said the 3.6 billion dollar amusement park had been approved. Shanghai has been working for almost a decade to land a world-class amusement park, partly to shore up its lagging economic growth compared with other Chinese cities, the newspaper report said. There had been speculation that the announcement would come during U.S. President Barack Obama's visit to China later this month.[4] Disney hopes to open Shanghai Disneyland by 2014, at a reported cost of about $3.6bn (£2.17bn). The announcement comes two weeks before U.S. President Barack Obama makes his first official visit to China.[30] The announcement comes less than two weeks before President Obama's first official visit to China, beginning in Shanghai on November 15. It follows a decade of on-again, off-again negotiations between Disney and authorities that highlighted the difficulties faced by foreign media companies trying to gain access to China's 1.3 billion population.[22]
Disney announced the approval in a carefully worded statement Tuesday afternoon. Government-controlled China National Radio speculated that the timing of the announcement, coming in advance of President Obama's visit to Shanghai this month, amounted to a "gift."[2]
The price tag has been reported to be one of the largest-ever foreign investments in China, in the neighborhood of $4 billion. "China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for the Walt Disney Company," Disney president Robert A. Iger said in a statement.[13] The regime has been wary of foreign influence in the sensitive sectors of media and popular culture.But rising incomes make such ventures particularly attractive as better-off families look for new ways to entertain themselves and their pampered only children -- born under China's "one couple, one child" policy. Robert Iger, Disney's president, said: "China is one of the most dynamic, exciting and important countries, and this marks a very significant milestone for the Walt Disney Company."[22]
China Daily reported that several state-owned firms in Shanghai would form a joint venture with Walt Disney to invest in the project, with the SOEs collectively taking a 60 per cent stake in the venture. [12] Officials with the foreign investment department in the district government said several big state-owned firms in Shanghai would form a joint venture with the Walt Disney Co. to invest in the project.[24]
"We haven't received any formal notice from the district government on the Disney theme park issue, but we've been gathering information of more than 4,000 residents in the village in recent weeks," the source said. The government will probably start evaluating residents' houses as early as this December for the Disney project, a villager surnamed Xu said.[34] "The cultural implication is significant as Disney theme parks represent a certain kind Western thinking," Chinese University hotel and tourism management associate professor Leung Wai-kin told Bloomberg in a phone interview. "It doesn't mean the government agrees to it but at least it's comfortable with it."[7]
The two existing theme parks in Shanghai, Jin Jiang Action Park and Happy Valley, were philosophical about the arrival of Disney.[17] "We are born here and grew up here, and we know what the Chinese people want," said Ren Kelei, president of Happy Valley, the newest and biggest of Shanghai's theme park.[31] The initial phase of the project would include a "Magic Kingdom-style theme park with characteristics tailored to the Shanghai region."[37] The villagers will be relocated to make way for a project rumored to be a Disney theme park.[34] "Disney was a big brand, not really understanding the culture at the beginning. They had everything run out of the U.S. At the beginning there was a sense of arrogance: 'We're Disney, and don't tell us how to run a theme park.'"[13]
The park in Hong Kong, at 1.26 sq km, is the smallest of Disney's five major parks, which are located in the U.S., France and Japan.[17] The jury is still out on Hong Kong Disney but WDW officials believe mainland China is the big move.[36] Hong Kong Disneyland Resort Managing Director Andrew Kam said the announcement marked "another significant step for Disney" in China, an important and dynamic market.[14] Talks ebbed and flowed, with discussions resuming in earnest about two years ago, according to people familiar with the matter who asked not to be identified because of the sensitivity of negotiations. In the meantime, Disney turned its attention to Hong Kong, where it built the 320-acre Disneyland resort that opened in 2005.[2] "In fact, the disposable income of Chinese people is rising because of economic development," Andrew Kam, managing director of Hong Kong Disneyland, said in Shanghai recently.[31] HONG KONG: Competition from Shanghai will not hurt Hong Kong Disneyland (HKDL), according to its largest stakeholder, the special administrative region's government. A visitor holds balloons as she has her photo taken by her friend at the Hong Kong Disneyland November 4, 2009.[43] Margaret Fong, commissioner for tourism with the (HKSAR) government, said the Hong Kong park attracted visitors from not only mainland but also southeast Asia and other places.[24]
Gold counters rise on higher gold prices (Updates to close) By Jun Ebias and Claire Zhang HONG KONG/SHANGHAI, Nov 4 (Reuters) - Hong Kong stocks closed up 1.76 percent in an anaemic session on Wednesday, as investors snapped yo banks and gold counters, while Shanghai closed close to a three-month high, led by metals shares.[20] Gold counters rise on higher gold prices (Updates to midday) By Jun Ebias and Claire Zhang HONG KONG/SHANGHAI, Nov 4 (Reuters) - Hong Kong shares on Wednesday rebounded from a two-day fall as investors hunted for bargains, while Chinese stocks rose to their nearly three-month intraday high, led by metals shares.[21]
Gaining Shanghai A shares outnumbered losers by 557 to 311 as turnover remained active at 164 billion yuan ($24 billion), although that was down from Tuesday's 170 billion yuan. In the latest evidence of China's recovering economy, the World Bank on Wednesday raised its forecasts for Chinese growth this year and projected a slightly faster pace of expansion in 2010, but it said Beijing did not need to embark on major policy tightening at this stage. [44] Property shares were weak, with China Vanke ( 000002.SZ ) sinking 1.51 percent to 11.76 yuan. The official Shanghai Securities News reported that some Chinese banks have tightened their residential mortgage lending on expectations that Beijing may raise rates.[21]
SHANGHAI, Nov 4 (Reuters) - China's key stock index rose 0.46 percent to end at a nearly three-month closing high on Wednesday, led by metal shares, continuing a rally this week fuelled by optimism over the economic recovery and sharply improving corporate earnings prospects. The Shanghai Composite Index.SSEC finished at 3,128.537 points, its highest close since Aug. 13, having risen more than 4 percent so far this week.[44] BEIJING, Nov. 4 (Xinhua) -- Chinese shares opened slightly higher on Wednesday, with the benchmark Shanghai Composite Index up 0.16 percent to open at 3,119.31 points.[45] Chinese equities rose on Wednesday for the fourth consecutive trading day, with the benchmark Shanghai Composite Index up 14.31 points, or 0.46 percent, to close at 3,128.54.[46]
'''As a Shanghai native, I firmly oppose the building of the Disney park in my hometown,''' says one post on eastday.com, a news portal run by the Shanghai government. [23] The Burbank-based entertainment giant has been in on-again, off-again discussions about the park since 1995, when the Shanghai government initially contacted the company about building a Disney World-like tourist mecca.[2] Disney would take a 43% equity stake in Shanghai Disneyland, while a joint-venture holding company owned by the local government would own the remaining 57%.[2] Lu Hua, senior project manager from Shanghai SJS Animation Co Ltd expressed concern about the domestic cartoon industry after Shanghai Disneyland is in business. "Local animation companies will face big challenges and competition if the decision is followed by the launch of the Disney Channel," he said.[31] Joseph Tung Yao-chung, executive of the Travel Industry Council, said competition from the new Shanghai Disneyland is "benign" because it will speed up HKDL's expansion. He expects people in eastern China will go to the Shanghai Disneyland, while HKDL will mainly attract people from southern China.[43]
While everyone is cautiously optimistic about the plans for the new Shanghai Disneyland park, there is one last step for the deal to be complete, a final agreement needs to be drawn up and signed. This should be accomplished in the next few weeks.[38] "We take the Shanghai Disneyland not as a competitor, but as a foreign counterpart that will inspire us to provide better services," said Cui Zhineng, general manager of Jin Jiang Action Park.[17]
The park, to be located in the Pudong district between Shanghai's main international airport and its downtown area, will target China's growing middle class.[7] The new park planned for the Pudong new district of China's financial capital will take years to contribute to a company that rakes in more than $30 billion (''18bn) in revenue.[25] The central government approval of the Magic Kingdom-style park, in the Pudong district, comes after years of talks.[30] The key central government approval must still be followed by more detailed talks between Disney and Shanghai.[1]
The Shanghai city government confirmed the approval by China's National Development and Reform Commission.[9] Not everyone is welcoming the jamboree. On Chinese-language blogs, Shanghai residents worry about their taxes (in the country'''s most expensive city), throngs of visitors on top of the city's 20 million residents, cultural invasion just when China is standing up, plus the government'''s priorities in a developing nation.[23] Disney has long sought to build in Shanghai, a wealthy city of about 19 million people that is ringed by the prosperous Yangtze Delta, home to tens of millions more potential visitors.[19] About 80 million people live within driving distance to Disney's proposed Shanghai site.[13]
Disney is one of the most active foreign entertainment companies in China, with more than 600 employees and retail outlets in at least 25 cities. Last year the company launched its first English learning centre in Shanghai, for children aged between 2 and 10.[22] Today, Disney's long association with China continues through offices in Beijing, Shanghai and Guangzhou with over 600 employees.[6]
"Shanghai Disney would be a huge boom," Shaun Rein, managing director of China Market Research Group told Bloomberg News[7] Disney hopes is to drive China'''s 1.3 billion people toward Disney products, although China has a very stringent policy on foreign television. Currently, it won'''t budge on allowing Disney programs on television, and according to the New York Times, approximately 20 non-Chinese films are show in Chinese theaters annually, and most of them are edited.[29] It'''s a huge waste of land resources as well,''' EPO67 writes (in Chinese ). As rumors swirled this week about the Disney-Shanghai deal, some of the criticism had made it into mainstream media. '''A lot of netizens think that time is ripe for China to build its own cultural aircraft carrier rather than spend a huge amount of money to bring an American Mickey Mouse version to China,''' said Economic Information Daily, a newspaper published by the Xinhua News Agency. Another predicted, '''Shanghai Disneyland is likely to become a 'chicken rib'.[23]
"We're not worried because the whole market is growing bigger." Hong Kong Disneyland will start a 5-hectare, HK$30 billion (US$3.9 billion) expansion this year to add three new areas and 30 new attractions. [31] Democratic Party vice-chairwoman, Emily Lau, told the RTHK broadcaster the news was a "devastating blow" to Hong Kong Disneyland.[30]
Andrew Kam, managing director of Hong Kong Disneyland Resort, said in a statement yesterday that the company's commitment to Hong Kong is evidenced by the enlargement plan it announced in July. "We at HKDL are focused on getting our exciting project under way as soon as possible," he said.[43] Hong Kong Disneyland also earned the wrath of the Hong Kong press corps by taking a long time to respond to queries with answers that had to be approved through U.S. headquarters, while Zeman was available and responsive.[13]
Plus, Disney was small, having located itself on a small plot of land on an outlying island off the main island of Hong Kong. "People thought, 'I'm going to Disney,' and when they got there, they got mini-Disney," says Zeman.[13] In relation to the stock quote service (the "Quote Service") information, the stock price, trade volume and turnover are provided by The Stock Exchange of Hong Kong Limited ("SEHK") and/or HKEx Information Services Limited ("Exchange-supplied information"), whilst modifications to and adaptations of the foregoing are made by Quam (H.K.)[15]
Hong Kong based DVN is a leading maker of set-top boxes for digital cable and the acquisition bolsters Cisco'''s presence in China, significantly.[37]
Disney's breakthrough comes just two weeks ahead of a scheduled trip to China by U.S. president Barack Obama, a visit that analysts had expected to help spur a decision on the park. [25] Speculation over progress on the Disney park has become a frequent theme for stock market players. Han's comments over the weekend prompted rallies in shares in local property companies and others likely to benefit from its construction.[5] Disney's other theme parks are located in Anaheim, Calif., close to Orlando, Fla., in the suburbs of Paris and in Urayasu, Japan, near Tokyo.[9] The first phase, to be built on about one square mile in what is now a mostly agricultural area between an airport and the Pudong business district, would include a theme park, hotel and shopping district.[2] Pandas are one example of how Ocean Park tailors its theme park to Chinese visitors.[13] "As a home-grown theme park, we have more products based on the Chinese culture and cater to Chinese visitors and we cost less," said Ren Kelei, chairman of OCT Enterprise Co, which runs Happy Valley.[17]
The theme park is a mayjah advance for Western media and entertainment trying to crack the Chinese market, which is very wary of foreign influence in media and pop culture.[27]
Analysts think the move is an important step forward for Disney and other western media firms to make inroads into the vast and untapped Chinese entertainment market. Christopher Marangi, senior analyst with Gabelli & Co, said: "They've been laying the groundwork for a park for many years by exposing the population to Disney properties, film, TV and merchandising.[25] Lu added that the Walt Disney Co has been seeking Chinese animation talent over the past few years and is planning to buy small animation studios in China.[31] Walt Disney Co ( DIS.N ) also said it had received approval from the Chinese government for the project.[18]
Disney said the announcement would allow it to sit down with the Shanghai government to hammer out a final agreement on the project.[30] Disney can now sit down with the Shanghai government and intense negotiations can proceed to try to reach a final agreement. It won't be far off.[30]
The agreement means Disney and its Shanghai partners can proceed toward a final agreement and start preliminary development work in the Pudong district, according to Disney.[42] The first phase of the project will be located south of Huanglou region, a 10-minute drive from Shanghai Pudong International Airport. The second and third phases will expand towards the southwest, according to Shanghai Securities News, citing an unidentified expert in urban development research in Shanghai.[34] The plan includes resettlement of a 4-million-sq-m area in Shanghai's Pudong New Area covering the villages of Zhaohang, Jinjia and Qigan in Chuansha town, said an official at Zhaohang Village Committee, who declined to reveal his name.[34] The official Xinhua news agency quoted Shanghai officials as saying large state-owned firms would form a joint investment venture with Disney.[30]
Half way around the world, in Anaheim California, at the original Disneyland Resort, guests on Tuesday night were delighted to hear about the news of a new park being added to the Disney Resorts already in operation. 'Everyone should be excited about this.' said Christina Neilson. 'There were rumors at D23 this was the next Disney Resort and well, I am glad to see this happen.[38] In the 2007-2008 fiscal year, for the fifth year in a row, Ocean Park tallied more than 5 million visitors -- half a million more than Disney.[13] More than 60 developers expressed an interest in the parcel, reportedly only 3 kilometers from the site of the future Disney park, and 17 companies ultimately competed for the land, offered at a starting price of 326.8 million yuan, the bureau said.[32]
"The direct impact of the Disney park should be on the city's retail sector," said Hingyin Lee of real estate services provider Colliers International. "The park will draw a large number of tourists, from both home and abroad, who will spend not only in the park and the vicinity but also in other prime retail areas across the city."[32] "The future extension of Metro lines through the Chuansha area should remain the most important driver of residential property development and home buyer demand near the park," said Steven McCord, senior manager of research with real estate services provider Jones Lang LaSalle Shanghai. "The park itself is unlikely to be a consideration for home buyers, who are looking primarily at accessibility to the city and daily life amenities such as supermarkets and schools."[32]
Previous media reports said the first phase of the Shanghai Park, which is expected to be located in Chuansha township, will cover around 4 sq km and cost about $3.6 billion. It is slated for opening in 2014. [17] No cost has been given for the project. When rumours of a deal began to spread this week, however,most reports put the price at $3.6 billion (£2.1 bn) for a park of about four square miles. This would be one of the biggest foreign investments in China.[22] The park itself, not including potential hotels and resorts, is estimated to cost $3.5 billion, which is the largest ever foreign investment in China.[29]
The park will be Disney's fourth outside the U.S., and at a cost of several billion euros will be no Mickey Mouse operation.[41] The agreement to construct Disney's fourth park outside the U.S. in the world's most populous nation 'marks a very significant milestone,' Chief Executive Robert Iger said in a statement.[11]
A Wednesday statement from Beijing said that the two sides will are committed to a "long-term cooperation to build a world-class Disney Park in Pudong."[33] Zeman's tips include offering local dishes over Americanized food, adding zoo-like animal exhibits to the cartoon animals on display and becoming more responsive to the press. By announcing the park plans while still in their infancy, Disney may have taken strides towards the latter, but we'll wait by the phone just in case.[26] Details that need to be finalized include ownership structure and local partners for the park, a source close to Disney told Reuters on condition of anonymity as talks were still ongoing.[1] As with Disney's other international parks, it will give a nod to local tastes and cultures.[2]
" I wasn't trying to kill the Mouse," Ocean Park Chairman Allan Zeman told Fortune. "They've done it themselves." It's often said that Disney force-feeds its products to international markets, thus homogenizing culture.[7]
A young Chinese girl displays Disney products in Shanghai's town of Chuansha on March 7, 2008.[42] The Shanghai park is envisioned as a classic Magic Kingdom model, with a castle at the center, but with Chinese accents.[2] The Shanghai park would similarly reflect mainland sensibilities, people familiar with the plans said.[2] The park will be a major showcase for Shanghai, the mainland's main financial and commercial center.[10] Shanghai Happy Valley, which opened to the public on Sept 12, is one of four parks in that group on the mainland.[17]
SHANGHAI'S two major amusement parks said yesterday that they aren't worried about losing customers when Disneyland opens in the city, but domestic animation firms did express concern about the competition.[31] "For Shanghai, the Disneyland coming here has a good effect. The reputation of the city will arise, so? we really hope it will come," he said. Others though, including business owners who rent and therefore stand to loose their businesses while the landlords profit, were not so welcoming. Li Nianhua, who has worked hard to build a small convenience store, says she has a lot to lose from this investment. "We've been running this shop here for over ten years.[10]
The Shanghai municipal government announced on Wednesday that the Shanghai Disneyland project has been approved by authorities in late October.[14] Associated Press Mickey and Minnie are coming to Shanghai. That'''s the early reaction from a surprising number of netizens, or Chinese Internet users, to confirmation early Wednesday that plans for Shanghai Disneyland have the green light to proceed.[23] Fans at Disneyland last night were excited about the announcement of the Chinese Government last night on November 4th in Shanghai and a day earlier in Anaheim.[38]
The United States-based company and its Chinese partners will now begin detailed talks about the project, which will be based in Pudong New District, the government's information office said in a statement.[17] The news was announced yesterday by both the company and Shanghai's municipal government.[17]
The company says the park will have "characteristics tailored to the Shanghai region". It will reportedly be about 10 sq km (four sq miles) in size.[30] Experts predicted that the dense population of Shanghai and the proximity of other major cities, including Hangzhou, Nanjing and Suzhou, means the park will not have a problem attracting visitors.[17] With some 80 million people in the city and nearby areas, the park will have a regular supply of visitors.[22] Pudong district is a huge financial centre in China (Jin Mao tower anyone?) and Disneyland would do very well there. As for residents losing there homes, this is very common in China and happened to a lot of people while I was living there. The city was preparing for the 2010 world expo and thought nothing of tearing down homes/ slums to make the city appear better this doesn't surprise me at all.[27] Although Shanghai is China's richest city, less than two decades ago the business district, Pudong, was vegetable and paddy fields.[22]
Less than two hours after the decision was publicized, a 56,570-square-meter land parcel in Chuansha designated for residential development was sold to a real estate developer from Xiamen, eastern China's Fujian Province, for 1.19 billion yuan (US$174 million), according to a statement posted on the Website of the Shanghai Urban Planning, Land and Resources Administration Bureau.[32] Gaining Shanghai A shares outnumbered losers by 557 to 311 as turnover remained active at 164 billion yuan ($24 billion), although lower than Tuesday's 170 billion yuan.[20] SINGAPORE (Dow Jones)--Most Asian markets ended down after a choppy session Tuesday, though shares in Shanghai rose for the third consecutive session, helped by a report that the country's Big Four banks increased new yuan loans last month.[47]
Aluminum shares soared, with Aluminum Corp of China ( 601600.SS ) advancing 5.59 percent to 14.93 yuan.[21] Oil producer PetroChina ( 0857.HK ) was up 3.33 percent. Credit Suisse raised its rating on the stock to "neutral" with a target price of HK$10.10 a share, as PetroChina is seen to benefit before other oil firms from gas price reform in China.[21]
"The landing of Disneyland will drive up prices of commercial property, which, in turn, will send local house prices rocketing to a new high soon," predicted Xue Jianxiong, an analyst at real estate services provider E-House (China) Holdings Ltd.[17] "Generally speaking, the news will have positive effects on residential development in neighboring areas, but mainly in the long run due to anticipated improvements in infrastructure within the next few years," said Jenny Wu, head of the residential sector for east China operations at real estate services provider DTZ. "In the short term, we expect housing prices in the area to remain rather stable as they're already very high."[32]
Secretary for Commerce and Economic Development Rita Lau insisted China could accommodate two parks. [30] Rival theme parks are under development, including a Universal Studio in Singapore.[43] With the rapid development of the economy, "our country is big enough to have two Disneyland parks or more," said Secretary for Commerce and Economic Development Rita Lau Ng Wai-lan.[43] The Shenzhen-based OTC Group, which developed Happy Valley, said the park will build a strong reputation and customer base by the time Disneyland opens.[31] Ren said the park, which opened last month, will be targeting a different customer than Disneyland. Happy Valley will appeal to young people seeking heart-stopping thrills while Disneyland will appeal more to families and tourists, he said.[31]
Would I visit a park that took away people's home's and forced them to move elsewhere? No, i'd just go to the one in America. It's closer.[27]
Zhang Huiming, an economist at Fudan University, said the upcoming visit of U.S. President Barack Obama will help promote the project. "For the U.S., it's a matter of the export of American culture," Zhang said. And, on the streets of Shanghai, Donald Duck and gang already have their supporters.[17] The timing of the breakthrough is handy as it comes less than two weeks before President Barack Obama's planned Nov. 15-16 visit to Shanghai.[5]
Last weekend, Shanghai's mayor, Han Zheng, told reporters the central government had issued the required approval and that the city would be making an announcement soon. [5] A writer calling himself EPO67 on tianya.cn draws attention to Shanghai'''s race track, which, after it opened in 2004, became central to the downfall of top officials in the city during a massive corruption scandal.[23]
The Shenzhen Composite Index for China's smaller second exchange added 0.7 percent to 1,112.35. Investors were heartened after the World Bank raised its forecast for Chinese economy from 7.2 percent to 8.4 percent, reflecting the country's massive stimulus spending. "This is certainly a boost on the market, together with the economic data released earlier," said Mao Sheng, an analyst for Huaxi Securities in the western city of Chengdu. [28] The China Enterprise Index.HSCE of top locally listed mainland Chinese stocks rose 2.37 percent to 12,796.74.[21]
China shares hit 7-week high on recovery outlook Associated Press Chinese shares rose for a fourth day Wednesday, hitting a seven-week high on optimism about the economy's recovery.[28]
Disney's, obviously, did not. "Whether it's the food, the public relations, the media, it's important that they really learn from some of the mistakes they made here," says Zeman. "They need to stay American, but with a few Chinese characteristics. They have to become more of a local experience, not unlike McDonald's or Pizza Hut, where they have this product, but they localize it with different flavors and toppings."[13] At the site where the Walt Disney Corporation plans to build the resort is a field just waiting for a little Pixie dust and some bulldozers.[38] Perhaps the company is giving up on Dubai and the concept of mixing superheroes with princesses, mice and whatever Goofy is. Or they know something we don't, which is why as Walt Disney predicted we all live in geodesic domes nowadays.[26]
Costs for the project will exceed $3.6 billion and will include the traditional Magic Kingdom and other Disney attractions. [35] Turnover for the Shanghai Composite Index fell to CNY167.0 billion ($24.5 billion) from CNY173.5 billion Tuesday.[48]
Shanghai SJS Animation Co Ltd has spent five years producing a highly anticipated 3D science-fiction film "Animan," a Chinese answer to the Hollywood blockbuster "Transformers."[31] Shanghai Lujiazui Finance & Trade Zone fell 1.9 percent to 29.17 yuan, while developer Shanghai Fenghwa Group Co. rose 2.6 percent to 10.46 yuan.[28] In Shanghai, Shandong Gold ( 600547.SS ) was up 2.11 percent at 69.79 yuan, while Zijin Mining ( 601899.SS ) rose 1.5 percent to 9.49 yuan.[20]
Shandong Gold (600547.SS: Quote, Profile, Research ) outperformed the market, ending up 2.11 percent at 69.79 yuan, after gold prices XAU= hit a record $1,088 per ounce following news that India's central bank bought 200 tonnes of the metal from the International Monetary Fund.[44] DTZ found that home prices in Chuansha jumped to more than 13,000 yuan per square meter from only 2,000 to 3,000 yuan over the past two to three years, creating growing concerns that property values may already reflect most of the benefits that proximity to the park may bring.[32]
An official involved in the project talks said the park's planned area was estimated at 7 square km.[24] Happy Valley management is so confident that two more phases of the park are planned in the Sheshan Hill area of Songjiang District.[31] The park will be sited on reclaimed paddy fields in the eastern district of Pudong.[35]
In Hong Kong, the benchmark Hang Seng Index.HSI was up 1.63 percent, or 346.67 points, at 21,586.73 at midday. [21] In Hong Kong, the Golden Mickey Show is performed in three languages -- Cantonese, the language of Hong Kong, Mandarin, which is spoken on the mainland, and English.[2] We can see that our country's economic development has created a very big market. It can easily accomodate two Disneylands," Hong Kong's Secretary for Commerce and Economic Development Rita Lau told reporters Wednesday.[5]
Tourist spending now accounts for about one-quarter of Shanghai's total retail sales, and the coming Disneyland should lift that ratio further, Colliers said. Prime retail areas such as Nanjing Road E. and the Bund will be major beneficiaries, Lee said. [32] Shanghai Disneyland will be profitable in the long run, said Zhu Lianqing, a professor at the Shanghai Academy of Social Sciences.[31]
Beijing's approval clears the way for the Burbank media giant and Shanghai to work out the details. [2] Propelled by a faster-than-expected economic recovery, China's nearly 1,700 listed companies posted a surprising 26-percent year-on-year jump in third-quarter earnings in the latest earnings season, which ended over the weekend. The World Bank on Wednesday raised its growth forecast for China this year and projected a faster rise in 2010, but said Beijing did not need to embark on major policy tightening at this stage. "The market has nearly established a medium-term uptrend," said a manager at a mutual fund in Shenzhen, who could not be quoted by name as he was not authorised to talk to the media.[20] Jiangxi Copper Ltd., the country's biggest metal producer, added 1.5 percent to 40.30 yuan, while Aluminum Corp. of China surged 4 percent to 14.71 yuan.[28] Dongfeng Motor Group ( 0489.HK ) was up 9.71 percent after announcing a 4.63 billion yuan profit in the first nine months.[21]
China Unicom ( 0762.HK ) rose 3.37 percent after it signed up over one million 3G subscribers.[21]
SOURCES
1. Disney wins China nod for Shanghai theme park | Entertainment | Industry | Reuters
2. China OKs Disney theme park plans -- latimes.com
3. Shanghai Disney Project Includes Hotels, Shopping - WSJ.com
4. AFP: China agrees Disney theme park in Shanghai: Disney
5. The Associated Press: Disney says China approved Shanghai theme park
6. Disney confirms Shanghai theme park project approved by China gov't_English_Xinhua
7. Disney Gets Nod for Shanghai Theme Park
8. Walt Disney Co. (DIS) soars towards a bullish trend ahead | Benzinga.com
9. CBC News - Art & Design - Disney's Shanghai theme park plans OK'd
10. Disney to build theme park in China | abcactionnews.com
11. Los Angeles Business Journal Online - business news and information for Los Angeles California
12. Disneyland Gets Approval for Shanghai Park | China Briefing News
13. Disney theme park for Shanghai greenlighted - Nov. 4, 2009
14. HK, SH Disneylands can be complementary: official
15. Quamnet.com stock news
16. China News: Jeffrey Wasserstrom: Some Expo-Disney Connections | China Digital Times (CDT)
17. Govt buys ticket for Disney Shanghai
18. Shanghai govt says in detailed talks on Disney project | Industries | Technology, Media & Telecommunications | Reuters
19. Shanghai to own 57 pct of new Disney park -paper | Deals | Mergers & Acquisitions | Reuters
20. HK, China shares gain; gold, metal stocks up | Industries | Financial Services & Real Estate | Reuters
21. HK, Shanghai shares rise; gold counters gain | Industries | Financial Services & Real Estate | Reuters
22. China approves Disney theme park after decade of negotiations - Times Online
23. Disney Plans Get a Cold Reception Online - Digits - WSJ
24. BERNAMA - Shanghai Disneyland Project Gets Approval
25. Disney's rollercoaster relationship with China wins it theme park deal - Scotsman.com Business
26. Disneyland Shanghai Coming in 2015; Get Your 'Made In China' Mickey Ears Out! || Jaunted
27. Perez Hilton: Disneyland's Next Destination - Shanghai!
28. China shares hit 7-week high on recovery outlook - Boston.com
29. A Disney Theme Park is Approved in Shanghai
30. BBC NEWS | Asia-Pacific | Disneyland approved for Shanghai
31. Mickey doesn't scare city's 2 theme parks -- Shanghai Daily | '''''''''''' -- English Window to China New
32. Just call it Disney$land -- Shanghai Daily | '''''''''''' -- English Window to China New
33. Disney Theme Park Approved for Construction in Shanghai (DIS) - Comtex SmarTrend Alert
34. Initial plans for Disney park set
35. Mainland China Gets Its First Disneyland - International News | News of the World | Middle East News | Europe News - FOXNews.com
36. Blogs @ herald-dispatch.com: The Travel Professor: Disney says China approved Shanghai theme park
37. Trading The Globe: 3 Hot China Plays - Rapid Recap - CNBC.com
38. Anaheim Disneyland guests excited on news of approved Shanghai Disneyland plans for Walt Disney Corp
39. Disney's world expands to Shanghai, GM hits the brakes on Opel sale - THE WEEK
40. Shanghai to get a Disney theme park: Does it need one? | Gadling.com
41. Disney's Shanghai adventure gets Beijing backing - Leisure : business, corporate | euronews
42. Disney theme park set for Shanghai - CNN.com
43. Shanghai Disneyland no threat to HK
44. China shares end up 0.5 pct on economy optimism | Quotes | Company News | Reuters
45. Chinese shares open slightly higher Wednesday_English_Xinhua
46. Chinese shares close higher on Wednesday
47. Asian Shares End Mostly Lower; New Loans Report Boosts China - WSJ.com
48. China Shares End Up For 4th Session; Banks, Metals Cos Strong - WSJ.com
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