Disney Headed To Hong Kong

The Walt Disney Co. said Tuesday it will build a Disneyland theme park in Hong Kong. The $3.55 billion deal will being financed mostly by Hong Kong as a bold wager to boost its economy with more tourism in the new millennium.

For Disney, Hong Kong will become a third international theme park location after Paris and Tokyo. The entertainment giant sees the deal as an opportunity to drum up more business in Asia, where executives say the companyÂ's business is showing its strongest growth.

The park will be a mix of East and West, centered around a traditional Magic Kingdom castle and featuring performances in Cantonese, Mandarin and English.

Â"It provides us with a fantastic opportunity to develop a Disney anchor here in Hong Kong,Â" Steve Tight, a Disney vice president, said in a telephone interview.

Critics said Hong Kong may be paying too much for the Disney park and resort venture, with the promised returns based on projected numbers of visitors many years down the road.

Local critics also said the project initially will provide plenty of construction jobs but ultimately will offer mainly low-skilled, low-wage employment that may not justify Hong Kong's big investment.

Â"We appreciate that Mickey Mouse is coming to Hong Kong, which will be welcomed by the Hong Kong people. But the question is, is Hong Kong paying too much?Â" asked Sin Chung-kai, a lawmaker who speaks on economic matters for the opposition Democratic Party. Â"I think Disney is getting a very good deal.Â"

But Hong Kong's leader, Chief Executive Tung Chee-hwa, heralded the deal as Â"a vote of confidence in our city and its future,Â" which has been clouded by a sharp economic downturn brought on by the Asian financial crisis.

Tung promised 16,000 jobs will be created for construction and related infrastructure projects, with Disneyland employing 18,400 people when it opens in 2005.

The park will be created through a joint venture called Hong Kong International Theme Parks Ltd. It still must be formally approved by Hong Kong lawmakers and Disney's directors.

Written by Dirk Beveridge
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