| EXPO: Big city, Big Expo and Big Industry |
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| Date:26/08/2006 |
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Expo economy, characterized by low input, low pollution and high return,
has become a new point of growth for various countries and regions. Each
exposition is a grand display of modern civilization. Economists call
expositions "information surfing", "knowledge feast", "platform of fortune"
and“urban economic motivator". In Europe where the expo industry is developed,
people would say expositions are the "city's bread and butter."
As one of the
most internationalized cities in the Chinese mainland, Shanghai is drawing
worldwide attention. It is also attracting more and more foreign businessmen to
hold various kinds of international exhibitions. "Expo economy" is gradually
becoming a new hot spot of Shanghai's economy. As it raises its
internationalization, Shanghai will gain a handsome fortune from the expositions
each year.
The theme of Expo 2010 Shanghai is "Better City, Better Life." The
great opportunities that the expo industry is bringing to the city is gradually
emerging. Dai Liu, vice-director of Bureau of Shanghai World Expo Coordination,
said:
“The opening of the World Expo will help Shanghai realize its goal to
become an international exposition center and substantially upgrade its
organization capacity, service level and arena management level. "
Now
Shanghai has become one of the few central cities with a developed expo
industry. Its position and role in the country's expo industry have become more
and more evident. According to the statistics of Shanghai Foreign Economic
Relations and Trade, the city has seen a 20% annual increase in terms of the
number of exhibitions and exhibition space in the past decade or so. In 1990,
Shanghai held only 40 exhibitions with 100,000 square meters of exhibition
space. But in 2003, the number exceeded 330. The direct income from exhibitions
was 1.8 billion yuan, ranking first in the country and accounting for 45 percent
of the country's total.
"Feeling the pulse" of Shanghai's expo
industry
In spite of a fast growth, the city's burgeoning expo industry
still has some structural problems:
The potential of expo-tourism needs
to be tapped
Expo-tourism is a major factor of the expo industry that
motivates the economy. Besides a huge human flow, international conventions and
exhibitions bring stable and well-scheduled groups of visitors, which is easy
for tour agencies to arrange. What is more important, the concept of
expo-tourism covers all the aspects of a convention or expo -- from conference
organization to the tours after the meeting. Its profit rate is usually more
than 10%. Compared with ordinary sightseeing tourism, which usually yields a
profit rate of 1% to 2%, expo-tourism should be a highly profitable trade. In
Shanghai, the expo-tourism has been gradually on the track, but if the city
wants to become an internationalized convention and exhibition center, its
resources need to be better exploited.
In 2010 when Shanghai hosts the World
Expo, it is estimated that some 70 million visitors will come to Shanghai from
all over the world. So it is very important to have complete expo-tourism
service facilities.
The expo industry should offer quality
facilities
There are still many problems with the city's expo industry,
although it is growing very fast. The city did not have a long-term and rational
planning for the construction of exhibition venues. Since the 1990s, the city
has built the International Exhibition Center, Shanghai Mart, Shanghai
International Agricultural Exhibition Center and Everbright Convention and
Exhibition Center. But their exhibition space is only around 20,000 to 30,000
square meters. And they are scattered throughout the city. Including the
Shanghai Exhibition Center, the city has only less than 100,000 square meters of
exhibition space.
Experts believe that Shanghai has a long way to go before
establishing its position as an international exhibition center. What should be
on top of its agenda is to introduce free competition and market mechanism by
following international practice; reducing administrative interference and
clarifying the "rules of the game" in order to improve industrial
self-discipline and coordination, and curb the disordered situation where there
is no unified coordination for the sector; exhibition resources are scattered;
and pricing mechanism is varying. The purpose is to build a fair and open
exhibition environment and competitive system.
The industry faces a
shortage of qualified professionals
The shortage of Expo professionals
has been more and more obvious as the industry is developing rapidly in recent
years. Although the city has a considerably large group of people engaged in the
industry, there still lacks a large number of high-level planning and managerial
personnel.
Expo professionals include core professionals, auxiliary
professionals and supporting professionals. The core professionals include those
engaged in expo planning and high-level operating management. With highest
professional talent, they are at the top level of the industry. The auxiliary
professionals refer to those doing design, facility installation, transportation
and equipment production. The supporting professionals refer to senior
translators, tourist reception people and other service people.
Only when
the professional training develops along the growth of expo industry can the
city give full play its advantages. After the city successfully won the bid and
it is advancing the preparation, many of Shanghai colleges set up the department
for exposition or research institutions relating to the World Expo (expo and
service trade) to train talent for the 2010 World Expo.
Three major
economic zones vie for a leading position in expo business
The
Beijing-Tianjin, Yangtze River Delta and Pearl River Delta economic zones are
sparing no effort to develop their expo sector and vie to take a dominant
position in the country. They each have their own advantages. We will wait and
see who will win the contest.
Pearl River Delta region:
As a hot
spot of foreign investment, Guangzhou and Pearl River Delta were the earliest
bases in the mainland for overseas exhibition companies, especially those from
Hong Kong.
The advantages of the region are: first, it has developed private
enterprises; second, it is close to Hong Kong and Macao and enjoys smooth
logistics and information exchange; third, a series of exhibitions headed by
Guangzhou Import and Export Commodities Fair have become internationally known
events. Since the reform and opening-up drive started, this region has become a
manufacturing center of the country and even the world. As the exhibitions of
electronic components, light industry and consumer products develop rapidly,
Guangzhou has mainly been the host of regional
expositions.
Beijing-Tianjin region in the north
The Beijing area
has the largest exhibition space in the country and is leading the country in
the scale and quality of expositions. By 2010, the expo market will be nearly 4
billion yuan in Beijing. The city mainly holds economic and technological shows.
It is the first city in the country to develop into an embryonic form of expo
industry, which was built on the basis of large gatherings of central government
departments and market resources.
Cities compete in the Yangtze River
Delta region
This region is expecting a surge of development of expo
industry. In Hangzhou, Suzhou, Nanjing, Ningbo, Yiwu and Yuyao, the total
exhibition space already built and being built totals 580,000 square meters.
The booming expo industry in these cities poses a great challenge to
Shanghai. But some experts also believe it is not a bad thing to have more
rivals in the area. The expo sector in the region, including Shanghai, has not
seen excessive competition. Instead, the competition is not hot enough. The expo
enterprises in the region are usually small and weak. They need to go ahead
driven by competition. The experience of the expo industry in the developed
countries indicates that not a single central city can manage to hold all the
conferences or expositions. Competition at various levels will help the cities
in the region make the best of their advantages. Such competition will not
prevent Shanghai from advancing in the direction of an international expo city.
At the same time, it will help give rise to a number of expo cities in the
region with Shanghai at its center.
The prospects of Shanghai's expo
industry
"Now, people are ready to prepare the next exhibition while the
current one is not over. It shows the attractiveness of a fast-developing
Shanghai and the Chinese economy to the world. Nobody will give up the business
opportunities in the city to expand commercial exchanges," said a manager of
Shanghai Modern International Exhibition Co. Ltd..
After China's entry to
the WTO, the expo industry has not seen great changes compared with other
sectors. According to the General Agreement on Trade in Service and information
released by the Chinese government, the expo industry is not included in the 142
service trades of 11 categories. It is listed under the item of conventions.
Foreign businessmen can enter into this sector in the form of joint venture and
a controlling company.
The international exhibition giants, who look to a
booming expo market in China, have entered the Chinese market by setting up
representative offices, investing in exhibition venues and joining domestic
companies to run exhibitions. The World Expo will offer this industry an even
better opportunity. Like well-known expo cities, Paris, Munich and Hong Kong,
Shanghai will see a prosperous expo industry that will motivate its economic
development.
The World Expo will accelerate Shanghai's pace to become an
internationally well-known expo city. The theme of Expo 2010 Shanghai - Better
City, Better Life - has been well received internationally. By 2010, officials
of nearly 200 countries, regions and international organizations as well as 70
million foreign visitors will visit Shanghai. It will effectively help increase
the exchange and cooperation between Shanghai and other parts of the world and
increase its popularity as one of the central expo cities in Asia-Pacific
region.
Shanghai and the service, transport, tourism, hotel and catering
industries in the neighboring regions will greatly benefit from a huge human
flow. Local urban construction, real estate, transport, tourism and hotel
sectors will expect a new round of development.
Chen Xinkang, first president
of World Expo Economy Research Institute of Shanghai University of Finance and
Economics, said: "One yuan earned from the World Expo will generate 10 to 15
yuan income for relevant industries." The World Expo will produce a great
positive effect for relevant industrial chains.
A successful Shanghai World
Expo will be helpful to fostering a complete modern service trade, boosting the
international image of local enterprises and their brands and creating a city
environment that conforms to international practice and a fair and just credit
system.
Shanghai will have the largest exhibition area in Asia and become
China's center of expo economy as a result of hosting the world expo. At the
same time, there will gradually emerge an "expo rim" in the Yangtze River region
as a result of economic integration in the area and a major "expo trend" pushed
by the World Exposition Shanghai 2010.
At present, some of the major
exhibition companies in Shanghai are spreading management, professionals and
brands to neighboring regions to seek a cooperation amid competition at various
levels and jointly make a big "expo cake". The World Expo is definitely
providing a great opportunity. With great economic potential, regional
advantages and convenient transport and auxiliary service facilities, Shanghai
is rapidly advancing to become an international convention center.
(Chen
Wei)
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