The Walt Disney Company said expansion plans for Hong Kong Disneyland are on hold.

Consequently, 30 Hong Kong-based designers, engineers and artists will be laid off.

"After two years of Disney investment in creative and design work and extensive negotiations with our partner, the Hong Kong government, we have not yet reached a final agreement to expand," stated Leslie Goodman, executive vice president of public affairs at Walt Disney Parks and Resorts.

"The uncertainty of the outcome requires us to immediately suspend all creative and design work on the project."

Hong Kong Disneyland opened on Lantau Island on Sept. 12, 2005. The theme park and resort, a joint venture between Disney and the Hong Kong government, has two hotels with a total of 1,000 rooms.

In August, Walt Disney Parks and Resorts appointed former Coca-Cola executive Andrew Kam to head up Hong Kong Disneyland as the resort’s new managing director. According to reports, Kam in December announced plans to expand the park by a third.

"Despite this setback, the Walt Disney Company remains confident and committed to the long term success of Hong Kong Disneyland," Goodman stated.

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