Hong Kong businesses urge delay on Shanghai Disney
By Carrie Lee
HONG KONG (Reuters) - Hong Kong's tourism and hotel businesses have urged rival Shanghai not to build a Disney theme park "too soon," saying such a project would hit tourism in the territory, which is already setting up a Disney park.
They made the appeal through Hong Kong legislator Emily Lau, who presented their views in a letter to Hong Kong Secretary for Economic Development and Labor, Stephen Ip. A copy of the letter was sent to Reuters Sunday.
Hong Kong is banking on its massive $1.8 billion Disney project to buoy its sagging economy and lure more tourists.
But unconfirmed media reports that The Walt Disney Company had signed a letter of intent to build another park in Shanghai have sparked fears that Hong Kong's may face excessive 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.
"They (in the tourism and hotel industry) are very worried that if Walt Disney builds another park in Shanghai, Hong Kong's tourism industry will suffer a big blow," Lau said in the letter.
"They hope the local authorities will reflect to mainland governments the worries of Hong Kong's business sector and request Shanghai not to build the Disney theme park too soon."
They also urged local authorities to seek confirmation from the Chinese government that Shanghai is planning to build a Disney park in the near future, Lau said.
They believed the local administration had made a mistake by failing to secure a guarantee from Disney not to set up another theme park in China in the short term.
NO DEFINITE COMMITMENT
Hong Kong, which is battling 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.
The government has told legislators it has an understanding with Disney that it will not build another park in China before the Hong Kong park is complete, but it is unclear if that agreement is binding, lawmakers say.
Monday, Hong Kong legislators will grill the government about Disney's reported Shanghai project.
Earlier this month, Disney said it had made "no definitive decisions or commitments at this time" on another park in China but reiterated that it was possible 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.
Hong Kong's government pledged HK$22.45 billion (US$2.9 billion) in 1999 for the local park and accompanying infrastructure while Disney is investing just HK$2.45 billion.
(US$1-HK$7.8)
07/28/02 12:29 ET
By Carrie Lee
HONG KONG (Reuters) - Hong Kong's tourism and hotel businesses have urged rival Shanghai not to build a Disney theme park "too soon," saying such a project would hit tourism in the territory, which is already setting up a Disney park.
They made the appeal through Hong Kong legislator Emily Lau, who presented their views in a letter to Hong Kong Secretary for Economic Development and Labor, Stephen Ip. A copy of the letter was sent to Reuters Sunday.
Hong Kong is banking on its massive $1.8 billion Disney project to buoy its sagging economy and lure more tourists.
But unconfirmed media reports that The Walt Disney Company had signed a letter of intent to build another park in Shanghai have sparked fears that Hong Kong's may face excessive 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.
"They (in the tourism and hotel industry) are very worried that if Walt Disney builds another park in Shanghai, Hong Kong's tourism industry will suffer a big blow," Lau said in the letter.
"They hope the local authorities will reflect to mainland governments the worries of Hong Kong's business sector and request Shanghai not to build the Disney theme park too soon."
They also urged local authorities to seek confirmation from the Chinese government that Shanghai is planning to build a Disney park in the near future, Lau said.
They believed the local administration had made a mistake by failing to secure a guarantee from Disney not to set up another theme park in China in the short term.
NO DEFINITE COMMITMENT
Hong Kong, which is battling 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.
The government has told legislators it has an understanding with Disney that it will not build another park in China before the Hong Kong park is complete, but it is unclear if that agreement is binding, lawmakers say.
Monday, Hong Kong legislators will grill the government about Disney's reported Shanghai project.
Earlier this month, Disney said it had made "no definitive decisions or commitments at this time" on another park in China but reiterated that it was possible 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.
Hong Kong's government pledged HK$22.45 billion (US$2.9 billion) in 1999 for the local park and accompanying infrastructure while Disney is investing just HK$2.45 billion.
(US$1-HK$7.8)
07/28/02 12:29 ET
