Close to a billion dollars is headed for the Chinese economy thanks to Disney and its joint venture partner in the region, which are investing an additional US$800 million into the expansion of Shanghai Disney Resort.
The agreement was reached through the state-owned Shanghai Shendi Group. Disney currently owns 43% of the project, with the remaining value held by the Shanghai Shendi Group.
The increased investment will be used primarily for additional attractions, entertainment and other offerings to increase capacity at the theme park by the time it opens in December 2015.
Disney chief Robert Iger says the Chinese economy – with its burgeoning middle class and growing tourism industry – has laid a solid foundation for the ambitious project.
The Pudong, Shanghai-based park, with its total price tag estimated to now be more than US$5 billion, will include two themed hotels, a large retail, dining and entertainment venue and an array of recreation facilities.
Disney’s parks and resorts business continues to be an area of exponential growth for the company. The Parks and Resorts segment saw the highest rise in revenues during Q3 of last year, to US$3.7 from US$3.4 billion in 2012, and helped the House of Mouse achieve a 4% rise in overall revenues for that quarter.