To clear the way for the construction of a Disney theme park the government of a Shanghai township started relocating residents yesterday, according to sources close to the project.

The relocation of residents in Chuansha Town suggests that the eastern metropolis is confident about getting the green light from the central government for the theme park which is widely expected to open in 2010 the year Shanghai hosts the World Expo.

It would be the second Disneyland in China after Hong Kong which opened its doors in September last year and the third in Asia with Tokyo having the first on the continent.

A 14.25-square-kilometer site has been earmarked for the project according to local media reports making it possible to build a park nearly four times the size of Hong Kong Disneyland. Local government has drawn up a blueprint for the park as well as a transportation plan.

In the first official response from a top city official following two years of speculation, Shanghai Mayor Han Zheng said in March that the city was preparing to build the theme park. A spokesman for the Shanghai municipal government said recently that the city is awaiting central government's approval for the 30 billion yuan (US$3.75 billion) project.

An earlier statement by the Disney organization said if an agreement were reached on a second park in China it wouldn't open before 2010.

The municipal government is considering building a metro line or expressways linking the theme park to downtown areas and the Pudong International Airport, local media reported.

"For years Shanghai has been keen to build theme parks and attract major international sporting events," said Yu Hongfei, an expert with China Europe International Business School. "A Disneyland theme park will sharpen its edge in tourism and economic development."

Two years ago, the city became part of the prestigious Formula One racing circuit. The World Carnival Shanghai Festival 2003 attracted over 2.1 million visitors and generated profits of more than 200 million yuan (US$25 million) in less than one month.

"At the same time, years of rapid development in the Yangtze River Delta region has helped build a huge pool of tourists who are keen on more entertainment venues," Yu said.

Also, Hong Kong Disneyland failed to reach its goal of attracting 5.6 million tourists as expected in its first year partly because of its relatively small size, according to market analysts. A recent survey showed that tourists from the mainland account for only 26 percent of the total and that figure is far less than was expected.

(China Daily August 10, 2006)