Pixie dust is in mighty short supply at Hong Kong Disneyland. The park, a joint venture between Walt Disney and the Hong Kong government, was supposed to be Disney's foothold in the potentially lucrative China market but has steadily lost money since opening in September 2005.

The Hong Kong version of the Magic Kingdom is the smallest of Disney's theme parks, and some visitors gripe that it's too small to entice them back for a second visit.

Now the project has hit a new snag: Disney has indicated that it is putting on hold long-awaited plans to expand on the park. In a statement from Disney's Burbank office released on Mar. 16, the company said it was laying off employees in Hong Kong after failing to reach an agreement with the Hong Kong government to fund a much-needed expansion.

According to Disney, "the uncertainty of the outcome requires us to immediately suspend all creative and design work on the project." Thirty Hong Kong-based Disney "Imagineers" will be losing their jobs, leaving a skeleton team of 10 behind.

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