Location Map for World Expo 2010 Shanghai China 

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Proposed Universal Theme Park

This article appeared in the BUSINESS WEEKLY Dec 10-16 2002 Edition

Shanghai to get a little bit of Hollywood

Proposed Universal theme park would rival Disney Hong Kong

Shanghai: Universal Studios is marching into this city with its high-tech movie-and-television-themed mega park Universal Shanghai.

Heated discussion has also taken place following the agreement signed by the municipal and Universal Parks & Resorts last Saturday.

The companies involved in the projects of Universal Shanghai are Universal Parks & Resorts, the Shanghai Waigaoqiao Group Co., Ltd. 

It’s Shanghai: Glenn Gumpel (left), president of international business affairs at the Universal Studios Recreation Group, and Hu Wei, deputy secretary-general of the Shanghai Municipal Government, sign an agreement on Saturday with other Chinese partners. Universal Parks & Resorts will design, build and operate the Chinese mainland’s first world-class theme park-Universal Shanghai. The park is expected to open in 2006       

The project is scheduled to start construction in 2003 and open in 2006.

The theme park is expected to greet more than 8 million visitors in the first year of operation.

As it is a preliminary agreement, both parties need more negotiations that are expected in the future, city officials refused to disclose details of the investment.

One possible reason is that while Shanghai expressed its willingness to support the project, the central government has not given its consent yet.      

The Asian Wall Street Journal has reported that the deal could be worth US$870 million and said Universal will pay US$100 million for a one-third stake, sharing the project with the two Chinese companies backgrounds.

Other sources have disclosed that total investment in the project will reach over US$1.7 billion after construction is completed.

According to Jim Yeager, senior vice-president of public relations and publicity at Universal, the first phase will take up more than 80 hectares of land.

The selected site for Universal Shanghai is the area of Sanlin along the Huangpu River within the Pu Dong New Area.

Geographically, this site is included in the southern part of the Huangpu Riverbank Development project and is near the site for 2010 World Expo.

Although some analysts believe that the project is the direct result of Shanghai’s success in winning the 2010 World Expo, Glenn Gumpel, president of international business affairs at Universal Parks & Resorts, said firmly that this was not the case. ‘ We will definitely come to Shanghai even if it failed in the bid for the Expo on December 3, ‘ he said.

Insiders added that Universal did not choose Shanghai, but the city chose Universal. If Shanghai failed in its bid, the city desperately needed some new impetus for its future development.

Hu Wei, director of the Pu Dong New Area, said Universal Shanghai will create a mutually benefit environment of fashionable residential, shopping, tourism and entertainment within the overall Huangpu river Master Development Plan.

‘The project will offer more than 10,000 direct job opportunities, meanwhile the indirect job opportunities are expected to surpass 100,000,’ Hu said.

me insiders say Universal will compete with a new Disneyland scheduled to open in Hong Kong in 2005.

An official from the Pu Dong New Area who refused to give his name said that the central government did not want to see Hong Kong and Shanghai in competition.

The official also revealed that conditions put forward by Disney during negotiations were too rigorous for Shanghai to accept.

‘With the agreement between Universal and Shanghai, negotiations with Disneyland will be postponed,’ the source added.

When asked about Disneyland’s plan to invest in Shanghai, Yeager from Universal said that Universal said that Universal is ‘…never afraid of competition.’

Last month, a Beijing-based tourist group also disclosed that China’s capital city also plans to build a Universal Studio park in time for he 2008 summer Olympics, with an initial cost of US$900 million.

Gumpel from Universal said that they are very interested in exploring the market throughout the country, however the first priority is to successful launch the project in Shanghai.

Insiders believe the possibility of Universal establishing a theme park in other Chinese cities after Universal Shanghai is set up is very likely.

Big plans for city tourism – This article appeared on Shanghai Daily Newspaper Saturday-Sunday 23-24 August 2003.

Investment in Shanghai’s Universal studios Theme Park has been set at 7.2 billion yuan (US$867 millions). The Park, which will be completed in 2006, will cover 2.5 million square meters in Pu Dong.

The big-ticked project, targeting some 8 million visitors during its first year of operation, is part of the city’s plan to attract tourism from home and abroad.

At a conference held by the Shanghai Tourism Commission yesterday, the body said it hopes to attract 4 million overseas tourists in 2005, bringing in revenue of between US$3 billion and US$3.2 billion.

That means the city has to attract 50% more overseas tourism over the three-year period.

In addition, 100 million domestic visitors are expected to come to Shanghai, generating revenue of 130 billion yuan for the city in 2005.

“The goals spelled out in the three-year plan have been carefully studies and are achievable,’ said Dao Shuming, vice chairman of the commission.’ We have the confidence to fulfill the targets.’

The city is depending on a long list of projects to attract the tourists.

More than 79 billion yuan is planned for investment on about 70 projects that cover such aspects as theme parks, tourism sites, resorts, hotels, golf courses, transportation, shopping, restaurants, museums and sports facilities, according to Dao.

Besides the Universal theme parks, the city has another three amusement park projects under construction or to be constructed.

A park with Ferries wheel towering 200 meters, which will be the world’s highest, will be created at an investment of 3 billion yuan along with the northern Bund in Hongkou District.

A similar amount will go into a film center at the foot of Sheshan hill.

In addition, the city plans to create an auto theme park in Anting Town.

Natural and historical heritages will be further tapped to lure visitors. Ambitious plans are also under way to turn the different sections of the Bund into a top-tier attraction.

Anticipating a growing number of tourists, the city also planning to create enough quality accommodations.

Under the administration’s plan, the number of city’s star-rated hotels and serviced apartments will increase to 450 from 300 at the moment. Hotel rooms will grow to around 70,000 from 50,000.

Hotel operations are wasting no time getting ready for the anticipated tourism boom.

According to a list of projects released by the commission, a conglomerate from Xinjiang Uygur Autonomous Region and a Cuban company have teamed up to build a new 5-star hotel in Pu Dong, promising to invest US$120 million. Shimao Group is investing 300 million yuan to create a five –star hotel in Sheshan.

The Pu Dong Shangri-La Hotel is spending about 385 million yuan to expand its facilities, while the Shui-On Group will invest around 700 million yuan to create a hotel near its prized Xintiandi project downtown.