Photo taken on Nov. 4, 2009 shows the panorama of the planned area of the Shanghai Disneyland Project in Pudong New District of east China's Shanghai Municipality.  (Xinhua/Pei Xin) Photo Gallery>>>

    SHANGHAI, Nov. 4 (Xinhua) -- China's central government has officially approved the Shanghai Disneyland Project, the Shanghai municipal government announced Wednesday.

    However, it will take another five years for the park's first phase of construction to be completed, according to a spokesman for the Pudong New District government.

A car passes by in the planned area of the Shanghai Disneyland Project in Chuansha County of Pudong New District of east China's Shanghai Municipality Nov. 4. 2009.(Xinhua/Pei Xin) Photo Gallery>>>

 

    An official involved in the project talks said the park's planned area was estimated at 7 square km. The project is expected to cost 25 billion yuan (3.66 billion U.S. dollars) .

    Officials with the foreign investment department in the district government said several big state-owned firms in Shanghai would form a joint venture with the Walt Disney Co. to invest in the project.

    The government's information office said Wednesday that talks had started on details of the project.

    Disney president and CEO Robert Iger said in a statement that China was one of the most dynamic, exciting and important countries in the world, and the approval marked "a very significant milestone" for the Walt Disney Company in China's mainland.

    The California-based company had its theme park business affected by the economic downturn. It reported a 19 percent year-on-year fall in profits from its parks and resorts for the fiscal third quarter in July.

    Secretary for Commerce and Economic Development of the Hong Kong Special Administrative Region (HKSAR) government Rita Lau said Wednesday that the planned Shanghai Disneyland theme park and the existing Hong Kong Disneyland would complement each other.

    She said the Chinese economy was growing fast and the Chinese market, with its huge potential, would be big enough to sustain two Disneyland theme parks.

A cameraman shoots the poster of the Shanghai Disneyland Project's approval in Chuansha County of Pudong New District of east China's Shanghai Municipality Nov. 4, 2009. (Xinhua/Pei Xin) Photo Gallery>>>

    Margaret Fong, commissioner for tourism with the (HKSAR) government, said the Hong Kong park attracted visitors from not only mainland but also southeast Asia and other places.

    Hong Kong business people have said the number of tourists from the mainland would fall as Disneyland visitors would be drawn to the Shanghai park, but the Hong Kong park, with some unique attractions, should remain an attraction.

    "I am looking forward to the amusement park in Shanghai," said a 23-year-old Beijing resident who gave her surname as Wang. "I visited the Hong Kong Disneyland this year. English was commonly used in the park, which may have brought language barriers for tourists from the Chinese mainland. It would be more home-like to visit the Shanghai Disneyland," she added.

Locals living in the planned area of the Shanghai Disneyland Project are excited on the news of the project's approval in Chuansha County of Pudong New District of east China's Shanghai Municipality Nov. 4, 2009. (Xinhua/Pei Xin) Photo Gallery>>>

    Land property around the planned site of the park saw a drastic increase in price at the news.

    One and half hours after the announcement, a piece of land with an area of 56,500 square meters in the vicinity of the site was auctioned off at 1.19 billion yuan, 264 percent of its premium.

    "I am very glad that the project was approved," said a local resident surnamed Cai, 60, who would probably be relocated after the construction starts.

    "One the one hand, I can bring my grandson to visit the park. On the other hand, I am expecting a handsome removal compensation since my house would be torn down for the park," he added.