City emerges as a world-class destination

SHANGHAI Shanghai is the mainland's economic powerhouse. The bustling port city's fast-developing infrastructure, colourful culture, versatile venues and exciting nightlife make it a hot pick for meeting planners and exhibition organisers. Set to host Expo 2010 from May to October, the city is constructing and improving its civic hardware in order to stage this world-class event for 70 million visitors from more than 200 countries. New facilities will boost the city's meetings, incentives, conventions and exhibitions (Mice) capacity. For example, the 2,600-seat Expo Centre will be built as a new convention centre, while the China Pavilion and Theme Pavilion will serve as new exhibition venues during Expo 2010. Separately, Shanghai's Pudong International Airport will get a third passenger terminal and two more runways by 2015 to meet rising demand. Last year, Shanghai hosted 678 international conferences, 544 exhibitions (294 international and 250 domestic) and 278 meetings. 'Our promotional work has been affected by the global economic crisis, but we won't cut our budget and would like to keep our promotion strength in different markets,' said Patrick Chen, assistant director of the Shanghai Municipal Tourism Administrative Commission's International Tourism Promotion Department, which promotes meetings, conventions and incentive programmes. Shanghai-based CiEvents China specialises in managing incentives, meetings and conferences. General manager Tracey Edwards said that Shanghai offered many world-class, five-star hotels in great locations with excellent meeting facilities. 'It also has five large exhibition centres providing a gross area of 140,000 square metres,' she said. Earlier last year, the Sichuan earthquake affected corporate travel within the mainland, but the Beijing Olympics then spurred Mice activity with events held after the Games. 'Business in Shanghai has mainly been affected by the economic crunch for inbound and budget travellers,' Ms Edwards said. 'While businesspeople are still travelling, they are cutting back on their budgets and the number of delegates who are travelling. By next year, we are expecting to see an increase in inbound arrivals for the Shanghai World Expo and, hopefully, a rebound in the economy in some parts of the world. Locally, we believe business will continue as normal, but with reduced budgets. Unnecessary meetings will not be held.' CiEvents China is keen to introduce initiatives to cope with the restricted market conditions. Examples include working with clients to organise their meetings early; ensuring considerations, such as advance planning and booking, to secure the most competitive rates; flexibility with dates and avoiding peak periods; and organising local events rather than incurring travel costs. While the city has excellent choices of venues to woo clients, such as the Shanghai Museum, the Children's Palace, the Confucius Temple and the Sky Ballroom at the Grand Theatre, hotels remain popular Mice venues. Jones Lang LaSalle Hotels (JLLH), a global hotel investment services firm, found that the average daily rate for five-star hotels in Shanghai last year was 1,541yuan (HK$1,752), down 3.9per cent. The average occupancy rate was 59.1per cent, a drop of 9.1per cent. JLLH said about 6,722 new rooms would be added this year by leading brands, bringing the total number of rooms to about 33,388. However, some developments have been put on hold because of the economic crisis, while some others, such as The Peninsula and The Puli Hotel and Spa, will open in the next few months. The 174-room Park Hyatt, which opened last September, is the world's highest hotel. It occupies floors 79 to 93 of the 100-storey Shanghai World Financial Centre, and targets boutique-sized meetings and upscale small incentives. It offers a large range of meeting venues, such as the eight private rooms on the 86th floor with breathtaking views of the busy Pudong district below. The venue takes up to 100 guests. When it opens in May, the Langham Yangtze Boutique Shanghai will provide an art deco venue for staging civic and banquet functions. General manager Stefan Heintze said: 'Meeting planners in China and overseas are spending smart and making their decisions later. The smart money winners will be those who can move fast in response to short lead times and be flexible to the needs of the meeting planner. 'Pricing is sensitive and flexibility the key. We would deliver a memorable experience and create value for clients or meeting planners who want to generate the maximum return on investment for their company while delivering their company's objectives.' Traditional players, such as the four-star Hotel Equatorial Shanghai, don't have fond memories of last year. General manager William Hall said: 'We thought that 2008 would be a good year and our refurbished facilities would be just right, but things simply didn't work out as anticipated. The main factors affecting the Mice market in Shanghai last year were the visa restrictions from April to end September. Many groups intending to come to Shanghai had to pull out over visa difficulties. Then there was the dreadful Sichuan earthquake. The Games were a complete triumph for China, but soon after came the global economic crisis. 'However, product launches, seminars and general meetings have all taken place relatively recently, with domestic companies taking the lead. Our main focus now is on meetings, and we have recently introduced a new slogan: 'Think Value: Think Equatorial'. Day delegate and residential packages are available from 675 yuan net half twin - that comprises accommodation, breakfast and day delegate package.' Mr Hall said some organisers were downscaling from five-star to four-star hotels in order to reduce their costs. 'We were approached by a European chamber of commerce to hold their annual ball here. In previous years they have used five-star hotels for a formal set dinner.' The Hilton Shanghai's multimillion-dollar ongoing renovation includes a revamp of its Grand Ballroom. Apart from 2,500 square metres of meeting space with 18 meeting rooms, it also handles outdoor catering services. General manager Guy Hutchinson said: 'Mice business has a lot of potential in China, especially in Shanghai. We will be focusing on the meetings and incentives market, and specifically on remaining relevant to our guests during these challenging times.' Hilton Hotels Corporation expects to open the Conrad Shanghai in the Xintiandi district later this year and has been chosen to manage the Waldorf Astoria On The Bund Shanghai, with the heritage part of the hotel opening in 2010, and the new tower in 2011. Positioned as a Mice hotel, the Pullman brand eventually tiptoed into Shanghai and opened its doors this month. Under the umbrella of Accor Hotels, the 653-room Pullman Shanghai Skyway in Lu Wan district is equipped with tailored services, access to technologies and the signature 'co-meeting' offer.