The government has estimated that the park, due to open in 2005, will boost economic activity by some 148 billion Hong Kong dollars (19 billion US) over 40 years.

"For Disney, there were good reasons to come here," said the South China Morning Post, noting that Hong Kong's infrastructure, location, administration and convertible currency were unrivalled in Asia.

"Nothing, however, detracts from the potential of the development, and the positive impact it will have on the economy.

"After so many knocks, Hong Kong is back in the limelight and the feel-goodfactor is making a return," it said.

The independent Chinese-language Ming Pao said the project would help the economy to recover and would consolidate Hong Kong's position as an international tourist centre.

"It is a vote of confidence for Hong Kong," the paper said. Hong Kong will be Disney's third centre outside the United States, after Paris and Tokyo.The Hong Kong Economic Journal said both Hong Kong government and Disney got what they wanted in the deal.

"What Hong Kong wanted is the invisible returns, such as international recognition and a world-class city image," while Disney wanted a good deal and real return, it said.

The Sing Tao Daily said the project could help "promote tourism, enhance Hong Kong's international image, stimulate the economy and attract foreign investment."

The Beijing-backed Wen Wei Po described the deal as marking the start of a new era in Hong Kong's tourist industry.

Other newspapers were sceptical about the financial arrangements.The Sun questioned whether theproject was worth its cost, while its sister-newspaper Oriental Daily News, described the deal as an "unequal treaty."

But in a survey carried by the Oriental Daily News, 70 per cent of 234 respondents said the construction of Hong Kong Disneyland would be good for the territory.