According to plans, a 1,000-acre park will be built near Shanghai’s ultramodern Pudong Airport, on the southeastern outskirts of the city. Connected to Shanghai by a high-speed magnetic levitation (Maglev) train that can reach up to 450 Km per hour, the theme park could become the city’s main point of attraction.

"It is obviously a positive move for Shanghai to gain another major attraction like this," said Dong Ming, director of Shanghai Jinjiang Travel Service International, one of the city's biggest tourist operators.

"Disney will definitely bring more people to Shanghai, and not just domestic tourists, but it will also draw people from other parts of Asia,” Dong added, noting that “The benefits to Shanghai will not be limited to just tourism. This will also have a positive impact on the transport infrastructure and the real estate market.”

Shanghai is already planning to become a major transport hub for the region. A massive extension of the city's domestic airport, Hongqiao, is due to open in March. The new terminal is to include an integrated rail station linked to the metro system and long-distance, high-speed train network. The plans hinge on the two airports working in conjunction to handle large numbers of domestic travellers heading overseas, and vice versa.

Professor Yin Kunhua, of Shanghai University of Finance and Economics, said the project would undoubtedly boost property values in the city.

"I'm glad that it has finally been approved," he said. "It is difficult to say what the exact impact will be, but this can only be good news for Shanghai." But it is clear that it will make Pudong more attractive than it was.

Still, concerns have been raised about the project's financial prospects, particularly in light of Hong Kong Disneyland's failure to meet attendance projections.

For some tourist operators, comparing Hong Kong’s experience to Shanghai’s is misplaced, even if the world financial crisis has definitely put a dent in investors’ willingness to put money into tourism.

China currently has 2,500 theme parks, 60 per cent in the red. According to a survey by the Horizon Group, a strategic research and consultancy firm, about 150 billion yuan (US $ 22 billion) have been invested in the 2,500 theme parks, but only about 10 per cent are actually making a profit.

In recent years, some have actually had to close like Guangzhou’s World Park, Hangzhou’s Future World and Wuajiang’s Froebelland Park, with losses of about UD$ 3 billion.