(Yicai Global) June 7 -- Rumors that The Walt Disney Company will build another Disneyland in a major Chinese city have been circulating, but it is unlikely that the US entertainment giant will construct a third resort in the country, The Paper reported, citing the head of the China Theme Park Research Institute.

Disney, which runs two theme parks in Hong Kong and Shanghai, is unlikely to build a third one as then it will actually compete with itself, Lin Huanjie said. It will only continue to expand in Shanghai, adding good new attractions.

Despite government officials in Qingdao, eastern Shandong province saying yesterday that they have been in talks with Disney recently, the California-based firm has no plans to locate a third theme park in the coastal city, the report said, citing Pan Feng, director of the Qingdao Municipal Bureau of Culture and Tourism.

Rumors that a new Disney World would be built in Tianjin, a city near Beijing, Wuhan in central Hubei province or Chengdu in southwestern Sichuan province have also all been denied.

There is always going to be news of a third Disneyland in China as this is good publicity and should another resort be built, it will be a great boost to the local economy, said Lin.

China's theme park sector is dominated by local operators, said Flora Zhu, associate director of Corporate Research China at US credit rating agency Fitch Ratings. However, the investment in these resorts is small and the parks are very similar. There is a big gap between Chinese entertainment parks and large international ones in terms of facilities, technologies and experiences.

Shanghai Disneyland and Universal Studios’ theme park in Beijing are becoming extremely popular as demand for entertainment rises, Zhu said. This is why many other big cities want to have their own Disney World or other similar resort.

Editor: Kim Taylor