Thursday, January 6, 2011

Shanghai Disneyland : an "exhorbitant" cost ?

This week we had almost daily news about Shanghai Disneyland, and today it's about the price of the whole project! More about this in the China Daily article below:

"Mickey Mouse and Company are coming to Shanghai, but they're going to have to contend with a bit of debate over the exorbitant cost of a Disneyland that is predicted to cost more than the World Expo.

Citing the Shanghai government, the 21st Century Business Herald reported Thursday that the total cost of the 107-square-kilometer project - which began construction in November and will finish in 2015 - will exceed 100 billion yuan ($15 billion).

The core area of the theme park, covering seven square kilometers, costing about 25 billion yuan, the newspaper added.

However, a Shanghai-based investment fund manager, who is working closely on the project, told the Global Times on condition of anonymity that the reported budget is a very conservative estimate.

"Based on the experience of other Disney parks, it is safe to say that the project requires a lot of financing, and a one-time investment may not be enough," he said.

According to the Herald, developing the park's 13.6-square-kilometer supporting area will require about 40 billion yuan, and most of that cost will be covered by the Shanghai government.

If the reported budget is true, the park's 100-billion-yuan price tag will be significantly larger than the 23.6 billion yuan spent on infrastructure for the World Expo.

The massive park will be located in the Chuansha area of Pudong district. Dong Qinfa, deputy director of the Pudong New Area's Financial Services Bureau, told the Global Times that the theme park is going to be the most important project in Shanghai since the World Expo, and it will propel the city into a period of economic growth."

Text: copyright China Daily

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