Happy Valley Shanghai is becoming bigger

[Dirk_Ermen]

Happy Valley to Expand in the Face of Competition from Shanghai Disneyland

November 9, Shenzhen Overseas Chinese Town Holding Co. Ltd. (OCT) is planning to expand its Happy Valley resort in Shanghai in the face of potential competition from Walt Disney Co. Disneyland theme park, the China Business News reported Tuesday.

On Nov. 5, Disney and Shanghai Shendi Group reached an agreement to develop the theme park, marking another step forward in the approval process with the local government.

The central government has yet to approve the project, the official Xinhua news agency reported earlier, citing a Disney spokesman.

The Disneyland project is likely to pose a threat to its Chinese rivals, most of who are still struggling, the paper said.

OCT recently acquired land next to its Happy Valley development, indicating that the developer is looking to expand in Shanghai, China??????s richest city.

Most domestic theme park developers and operators rely heavily on property projects with a connection to the theme parks they build for income, the report said.

OCT recorded property sales and tourism revenue of RMB 3.6 billion and RMB 1.89 billion in 2008, respectively, the paper said.

??????With the commercial parcel in hand, we??????re planning to build an upscale theme hotel to boost revenues,?????? an unnamed source from OCT was quoted as saying in the report.

The source also revealed that OCT is trying to buy residential developments in the areas surrounding its theme park, but failed in a previous attempt in July.

In addition to the hotel, the Happy Valley owner is also hoping to build a water park inside the resort, which will have Asia??????s largest surfing pool upon completion in 2012, the report said.

Another Chinese entertainment resort, Changzhou-based China Dinosaur Park, is also busy erecting a theatre and hotel within the park as part of its expansion plans.

Meanwhile, it has also developed a series of products based on its cartoon film characters, following the footsteps of Disney.

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