The government of a Shanghai township began relocating residents yesterday (Aug 10) to pave the way for the construction of a Disney theme park, according to sources close to the project.

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

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

A 14.25-square-kilometre 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; and the local government has worked out 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 is preparing to build the theme park.

A spokesman for the Shanghai municipal government said recently that the city is awaiting the central government's approval for the 30 billion yuan (US$3.75 billion) project.

An earlier statement by Walt Disney said that if an agreement were reached on a second park in China, it would not open before 2010.

The municipal government is considering building a metro line or expressways linking the theme park to the 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 small size, according to market analysts.

A recent survey shows that tourists from mainland account for only 26 per cent of the total, far less than expected.

Editor: Wing