Hong Kong lawmakers approve Disney expansion

HONG KONG - Hong Kong lawmakers have approved a government plan to expand the city's Disneyland at a cost of about $465 million.

The late Friday approval came after the Walt Disney Co. and the Hong Kong government agreed to expand their joint venture, Hong Kong Disneyland, two weeks ago after two years of negotiation.

The proposed expansion will add three more theme areas and 30 more new attractions, enlarging the park by nearly a quarter over the next five years.

Under the deal, the Burbank, California-based entertainment giant will put up all the new capital to cover the construction and operation costs during the building phases. Hong Kong will convert a large portion of the loan it provided to Disney for the construction of the original park, to buy more shares in the venture.

The territory's total stake is expected to be diluted by Disney's new expansion capital, from about 57 percent to 52 percent.

In a joint statement applauding the lawmakers' approval, financial secretary John Tsang said the expansion would help attract more family visitors from around the world.

Walt Disney Parks and Resorts chairman Jay Rasulo said the company is "eager to begin work" on the expansion.

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