Shanghai and Hong Kong have often been billed as China's fiercest rivals for local and domestic tourists, but yesterday the two financial centres agreed to work together. While admitting they are involved in 'friendly' competition for visitors and tourists, bureaucrats from the two cities signed an understanding yesterday to increase co-operation. The deal will focus on better promotion and advertising as well as limiting the number of dodgy tour operators who take tourists - sometimes at a zero tour fee - to shops rather than attractions. Chairman of the Shanghai Municipal Tourism Administrative Commission Dao Shuming said there were many potential benefits for the two cities in terms of cross-promotions and the sharing of ideas. 'Of course we are in competition,' he said. 'But it is still a two-way street and we want the best practice because both of us can benefit.' Mr Dao said Shanghai would continue to build towards what it hoped would be the peak in terms of visitor numbers - World Expo 2010. 'We will be putting more effort into attracting more visitors leading up to this event,' he said. Shanghai had 5.71 million visitors last year and expects that to increase to 6 million this year. There were 320,000 Hong Kong visitors to Shanghai last year and there have been about 150,000 so far in 2006. There were about 500,000 visitors from Shanghai to Hong Kong in 2005, with that number expected to increase this year. Mr Dao said Shanghai hopes to boost numbers with next month's tourist festival and October's arts festival as well as sporting events such as the Formula One Grand Prix, Shanghai International Gold Athletics Competition and Shanghai Masters Cup tennis tournament in November. The commission has engaged former Hong Kong radio journalist Ingrid Tang Wing-sai as its deputy director. Travel Industry Council executive director Joseph Tung Yao-chung said Hong Kong had nothing to fear from the big promotional push of the mainland's financial capital. 'We agree that healthy competition is good and Hong Kong remains a very attractive place for visitors from the mainland and overseas,' Mr Tung said. 'Overseas visitors who have travelled from Europe or the US are always going to want to see Hong Kong if they have made the journey to China.' WAY TO GO Better service and support between the two cities Advocating better tours More co-operation on services Easier tourist flow between Shanghai and Hong Kong Shared promotions Shared statistics and discussion on large-scale tourism festivals and events