China's powerhouse

Shanghai, China's commercial heart, is beating strong and fast. The scale and pace of construction work is breathtaking. Infrastructure developments, such as the plan to expand the city's metro system from the current five lines to 11 by 2009, are among the biggest being undertaken anywhere in the world. Business in all sectors is booming. Official figures put Shanghai's overall economic growth for the first six months of the year at a blistering 12.6 per cent. The city's manufacturing sector jumped 13 per cent and the service industry by 11 per cent. Infrastructure investment also rose over 25 per cent from the same period in 2005. Unsurprisingly, multinational companies are still flocking to the city investing in new projects, hoping to tap into the growing and increasingly sophisticated market. They are also setting up all-China and, in some cases, regional headquarters for their operations. Taken together, this can only mean even better news for the city's corporate events sector. Transport projects Several new transportation projects have been mooted that will allow event organisers and planners to more easily combine Shanghai with a second destination, without having to use air travel. This will have an especially positive effect on Chinese-based corporate meetings and incentive groups. There are plans to build a US$10 billion Beijing-Shanghai high-speed railway, which will cut the express travel time between the cities to just five hours from the current 14, but this mega-project may take a decade to complete. Construction work may also start by the end of this year on a US$4.3 billion maglev magnetically levitated) railway line between Shang-hai and Hangzhou, a popular tourism spot and itself an up-and-coming CEI destination. The 175km Shanghai-Hangzhou maglev railway is expected to go into operation before 2010 when Shanghai hosts the World Expo. Trains on the maglev railway will reach speeds of 450km per hour, but will be limited to under 200km per hour in the inner-city areas. It will take passengers only 30 minutes to travel from Shanghai to Hangzhou compared to the current 140 minutes by conventional trains. This will be the second one of its kind in China, the first being the maglev line at Shanghai's Pudong Airport. The city is also witnessing a huge expansion in room capacity. More than 20 five-star hotels are in varying degrees of preparation for opening over the next three to four years. This surge in capacity will be in time for the 2010 World Expo, which is expected to attract 70 million visitors. Yet corporate events depend on more than steel and glass. The human factor is all-important in maintaining and raising service levels and delivering the experience that sets a great event apart from the merely ordinary. Ralph Grippo, vice-president and area general manager of The Portman Ritz-Carlton, Shanghai, believes this is what gives his property an advantage. "While we will inevitably face greater competition, what the Ritz-Carlton brand stands for is not easily matched, never mind beaten. We offer personalised service and the highest standards of detail and attention from all our staff. We have built a reputation for quality in the meetings and incentives market. Those things are not easily developed, nor easily copied." Existing five-star properties are well aware that competition is coming thick and fast. General manager Akram Touma has been charged with opening one of Shanghai's larger new properties the Le Meridien Royal Shanghai in People's Square. The diligent construction work underway suggests that the property will meet its September soft-opening deadline, despite the fact that Starwood was only appointed to manage the property in April this year. "This will be one of the city's finest hotels. We have 66 floors with some of the best views. We are in the heart of Shanghai's business area with People's Square and Nanjing Road on our doorstep. We will have 770 guestrooms and major meetings space of around 2,000 sqm in total." The hotel will feature a 380 sqm Presidential Suite — the biggest suite in Shanghai — filling the whole of the 63rd floor and offering a 360-degree view of the metropolis. There will be two ballrooms, the Royal Shanghai Grand Ballroom and the Paris Ballroom, offering theatre-style capacities of 700 and 130 espectively. Elegant decor The Sheraton Grand Tai Ping Yang is one of the longest-established, western-branded hotels in the city. Formerly a Westin, Starwood rebranded the property several years ago. However, the property still maintains a sense of history with a fascinating collection of antiques, artwork, curios and replicas that are used to enhance the décor and ambiance of the guestrooms and public spaces. The hotel has 14 different function spaces, the largest being the 900-person capacity Grand Pacific Ballroom. The current Westin Shanghai is based at the Bund Centre in one of the city's bustling business and tourist areas. Wong Wye Leng, director of marketing communications, says: "We were the first international-branded five-star hotel in the Bund area. Our key clients are corporates, especially the multinationals, so we are a natural choice for business meetings and conferences of all kinds." The hotel's Diamond Ballroom holds 500 theatre style and there are 12 other rooms adding up to 1,410 sqm of space. On the banks of the Huangpu River a new Hyatt is scheduled to open in early 2007. The 618-room property was originally referred to as the Hyatt Regency Shanghai. However, it may open under the name Hyatt on the Bund. A175-room Park Hyatt is scheduled to open in mid-2008, giving the city one of the largest Hyatt presences in Asia. Likewise the Accor and Marriott groups are building a mixed presence in the city across their brand portfolios. Pudong Most of Pudong was farmland only a couple of decades ago but Shanghai's booming economy has seen the area transformed with highrise office blocks, corporate offices and some fine hotels. The Grand Hyatt Shanghai in Jin Miao Tower is a city landmark. The Jin Miao's 88 floors make it an unmissable part of the cityscape. Communications manager of the Grand Hyatt Sandy Liu says the property's two ballrooms, with capacities of 1,200 and 800, along with a 400-seater auditorium continue to be a popular choice among multinational companies. However, she points out that the hotel is also adept at outside catering and events. "Event organisers can look at a number of outdoor venues for various elements of their programme. We can also help with arranging cruises along the river, which is something a number of large companies we work with want us to arrange." Samson Zhang, director of sales and marketing at Four Points by Sheraton in Pudong, currently oversees the 336-room property in the Lujiazui financial and trade district. The hotel has eight meeting spaces, the largest holding 264 theatre style. However, the property is soon to gain a new sister. Zhang's team will jointly operate the new Sheraton Shanghai Hotel & Residences, Pudong when it is completed in February 2007. Both hotels will then form part of a complex also containing residential units, office space and a shopping area. The new Sheraton will not only add 540 new five-star guestrooms, but also seven new meeting rooms, including a grand ballroom that can hold 1,050 theatre style. "When the new complex is completed we will have one of the biggest meeting spaces in Pudong and a substantial combined room inventory," says Zhang. Although it has modest meeting spaces, the St Regis Hotel Shanghai locates itself firmly in the upper end of the business market. Jacqueline Wong, marketing communications manager for the property, says: "We can cater best to the small and medium-sized groups. The St Regis brand is all about premium service and elegance. For example, every guest has a personal butler so we are an ideal choice for the high-end executives and corporate VIPs." The property's meeting facilities are located on the second and third floors, with the largest function space, the Astor Ballroom, accommodating up to 320 theatre style. The Shangri-La Pudong is one of several city hotels to have undergone a major expansion. Rex Loh, director of convention sales, says: "Our Tower 2 has added 36 floors containing 375 more guestrooms. This means we have the highest room inventory of any deluxe property in Shanghai with 981 rooms and suites." The property now offers 6,500 sqm of event space, headed by two pillarless ballrooms, the Grand Ballroom and the China Hall, which can accommodate 1,500 and 1,700 persons respectively. The Crowne Plaza Pudong has 12 function rooms with 1,610 sqm of meeting space. The largest ballroom configuration theatre style can hold 750 and the smallest space is a boardroom for a dozen participants. She Shan On the outskirts of the city, the 327-room Le Meridien She Shan is positioning itself as a unique resort-style convention venue. Anthony Cheng, Le Meridien regional director of sales, China, says: "Depending on traffic, Le Meridien She Shan is only around 45 minutes from central Shanghai yet the atmosphere is green and quiet. Entirely different from the city." With open spaces, a nearby lagoon and mountain views, Le Meridien She Shan provides an accessible alternative to Shanghai's urban sprawl. Spa and golf packages add to the hotel's meetings offering. The largest capacity space can take 1,800 guests and Cheng points out that there are plans to add villas to provide extra overnight capacity. The area is soon to have a direct rail link with central Shanghai. Other international brands in the district, such as the Sofitel Sheshan Resort Shanghai, are also to arrive soon. The new Sofitel is scheduled to open in late 2007. The 318-room hotel will have a 2,000 sqm spa complex, and over 5,000 sqm of meeting space, including a pillarless ballroom accommodating up to 800 for banquets and five additional break out rooms. While event organisers have been heard recently to voice complaints about the relatively high costs in Shanghai, the swathe of new properties may have the effect not only of cooling down the market's pricing but also sharpening the focus on service and facilities.