Disney Announces Agreement to Build In Hong Kong

Hong Kong -- The Walt Disney Company announced Tuesday that it will build a Disneyland theme park in Hong Kong, after a deal was reached with the government.

The new entire project is a $3.5 billion deal between Disney and the government. The new theme park will be the fifth Disneyland Park and the third one built outside of the US.

Disney will retain a 43 percent stake in the project and has agreed to invest $314 million into the new park.

Disneyland Hong Kong will be built around the traditional Disney castle. The park will feature a mix of the traditional Disney rides, shows, shops and entertainment and the themes will have an influence from both the East and West.

According to Disney the Hong Kong park will be built in stages based on their attendance estimates. As demand increases the company will continue to expand the park and add new attractions to meet the demand.

Hong Kong estimates that the park may attract up to 15 million visitors annually after 15 years. Disney anticipates the park to draw approximately five million visitors the first year.

In addition to the theme park, the project includes a 1,400-room Disney themed hotel that will eventually be expanded to 2,000 rooms. The theme park and hotel combined is expected to cost around $1.8 billion.

Hong Kong officials project that the deal will bring about a significant boost to areas slow economy. The government predicts that the project will create approximately 16,000 jobs during the construction and Disney is expected to employ more than 18,000 when the park opens in 2005.

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