China and Disney Opening a New Resort In Shanghai
The country of China and Walt Disney Company are partnering to build the Shanghai Disney Resort at a cost of $4.4 billion. This will be a first for Disney in mainland China with a completion date set for 2018. The Shanghai Shendi Group of China will own 57 per cent of the resort and Disney the rest and the financing will be proportional to the investments. Disney will hold 70% of the management company though.
In 2005 Disney opened Hong Kong Disneyland which is off the coast of China but feel now is the time to move to the mainland betting on China’s middle class to fuel the growth. The Shanghai government expects the park will attracted 7.3 million people a year as 330 million people live within a three hour drive of the planned resort. About 30 million Chinese enter middle class each year and that is the group Disney is vying for, plus tourism in China and Asia is expected to help support both the new park in China as well as the existing park in Hong Kong.