HK's Disneyland expansion on hold

Disney has halted much-delayed expansion plans for its Hong Kong theme park after failing to agree a deal with the city's government, a company spokesman said yesterday.

The US-based firm said the decision was made after lengthy negotiations had failed to find a solution for the troubled Hong Kong Disneyland.

"After two years of Disney investment in creative and design work and extensive negotiations with our partner, the Hong Kong government, we have not yet reached a final agreement to expand HKDL," Leslie Goodman, Disney's executive vice president of worldwide public affairs said in a statement.

"The uncertainty of the outcome requires us to immediately suspend all creative and design work on the project."

Mr Goodman said the decision will mean around 30 Hong Kong-based "Imagineers", who plan, design and engineer the company's theme parks will lose their jobs.

However, Mr Goodman insisted Disney remained committed to the long-term success of Hong Kong Disneyland.

The theme park has struggled to hit visitor targets since it opened to great fanfare in 2005, and has faced criticism that it failed to understand both the local and mainland China markets. Disney has been desperate to increase the number and quality of the attractions at the three-billion-US dollar venue.

But the Hong Kong government, which owns 57 per cent of the park, has been reluctant to plough in any more cash after criticism that the initial deal was bad value for tax-payers.