Hong Kong's Disneyland venture has already attracted it's share of controversy over the past few years. Despite the chequered history of international Disney theme parks, the argument has always been that a Hong Kong Disney park would attract mainland Chinese visitors. Hence the beleagured Hong Kong travel industry is highly concerned over the Shanghai version.

Last week, the industry group sent a letter to Shanghai, expressing their concern and suggesting that the Shanghai Disneyland did not open "too early".

A Shanghai Disneyland is on the books, according to unconfirmed media reports that Disney execs have signed a letter of intent to build a park in Shanghai to be completed in 2006.

Hong Kong's travel and tourism industry has experienced a major slump since the Asian crisis, only to see a slow recovery latterly. Hotel rates are climbing again, but the opening up of the new Hong Kong Disney park would be a shot in the arm for the industry. Competition from a similar project in Shanghai however, would cut deeply into the expected inflow of mainland Chinese tourists visiting Hong Kong, in recent years, one of Hong Kong's major bright spots, as increasingly wealth Chinese tourists filled the gap in the downtrend in international tourists.

International Disney parks have had a chequered history. Two parks so close together need to be clearly positioned in the market, otherwise one or even both may well become a true financial fantasy-land.