Construction to begin at Shanghai Disney Resort

This Friday (8th April) will see the Walt Disney Company break ground on its new theme park and resort in Shanghai.

After years of negotiations with the Chinese Government, the groundbreaking ceremony will follow Disney's recent receipt of final approval from the Chinese central government to move ahead with its long-held plans for the 963-acre park and resort.

The Shanghai park will be California-based Disney's sixth major theme park in the world, and its first in mainland China.

Shanghai's Mayor has estimated the cost of the theme park will be 24.4 billion yuan ($3.73 billion) with the development set to be one of the largest foreign investments ever made in mainland China. The resort will be majority-owned by media and entertainment companies that are in turn owned by the Shanghai Municipal Government. Disney's stake in the endeavor hasn't been disclosed, but the company is expected to hold a minority interest.

In addition to Disney, the parties issuing the invitation were the Administrative Commission of Shanghai International Tourism and Resorts Zone and Shanghai Shendi Group Co. Ltd., Disney's government-owned joint venture partner. Negotiations for the park began in the late 1990s, spanning the terms of two Disney chief executives and five Shanghai leaders. Challenges turned on Disney's desire to enter

China's television market and Shanghai's desire to be assured the project would create a guaranteed number of jobs in the region. In the course of the Shanghai negotiations, Disney was able to create a separate theme park in Hong Kong, which opened in 2005.

Project planning for Shanghai moved into high gear in 2009 when Disney and the local Shanghai Government reached a framework agreement that was sent to China's central government for consideration.

The site is expected to include a theme park, two hotels, a retail-and-dining complex and a lake. At a recent conference for Disney investors, the head of the company's parks and resorts division, Tom Staggs, said that Disney expects the project to take five years to complete.

To make way for the project, 2,000 households and 300 companies were relocated. Project officials anticipate 7.3 million visitors the first year. Shanghai intends to extend its subway to the area, located near the Pudong International Airport.

8th November 2010 - DISNEY SIGNS AGREEMENT FOR SHANGHAI THEME PARK

27th January 2009 - DISNEY PLANS SHANGHAI THEME PARK