The National Development and Reform Commission said the Shanghai project at Pudong New Area's Chuansha town will initially be built on 116 hectares of land - 10 hectares smaller than Hong Kong Disneyland.

There had been widespread concern over competition in August after a Walt Disney document showed Shanghai Disneyland would cost 24.48 billion yuan (HK$27.76 billion).

The document also said the first stage of the park would cover 150 hectares.

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The mainland commission said the project to be jointly developed by mainland and American companies will include logistics support areas, a public utilities area and a parking lot.

A Hong Kong tourism insider said the similar size of the Shanghai and Hong Kong theme parks would put them on an equal footing initially.

He said it was Disneyland's policy to expand parks gradually after their opening.

"It will not use all the 400 hectares [in Chuansha town] at once," he said. The insider also said Hong Kong people should not worry about the size of the local park as the second expansion phase will add another 128 hectares.

"The agreement between Disney and the Hong Kong government said Disneyland cannot gain anything if the park does not make a profit," he said.

"Disney wants to expand the park more than anyone else to make more money."

Hong Kong Association of Travel Agents chairman Michael Wu Siu-ying said it would be "fair competition" if the two theme parks are of similar size as they can attract different types of visitors.

"The Shanghai theme park will be for visitors from eastern and northern China and the Hong Kong park for international visitors and those from Southeast Asia," he said.

He also said the Hong Kong park might have some advantages over Shanghai even if they were of similar size.

"Hong Kong Disneyland will expand and have more facilities in the coming three years.

"It will have some advantages over Shanghai as its park will not open until 2014."