Shanghai shines with charm and energy

No matter how often you come to Shanghai, there is always something new. Evolving and ever-changing, the city continues to fascinate the rest of the world. To the business community, Shanghai signals endless opportunities. Many multinational corporations have set up their offices in Shanghai and business events they bring to the city boost the local conference and meetings (C&M) industry. The Shanghai Municipal Tourism Administrative Commission's convention and exhibition department's ambition and efforts are widely appreciated by the industry. Deputy director Connie Cheng says they are doing a lot to promote Shanghai. "We will be exhibiting at IMEX in May in Frankfurt, along with some hotels, event venues and destination management companies (DMCs) to promote Shanghai to the whole world." Market focus "Our main target markets are Europe and the US. We will continue with roadshows in those countries. We have no plans for promotional Asia Pacific events," Cheng continues. Cheng also mentions Shanghai's three-year action plan. "The 10100 project is the most important. The city government aims to train and import conference, exhibition and incentive (CEI) professionals for the convention and exhibition industry in three years' time." According to Cheng, Hong Kong is a major source of CEI professionals. "Because of CEPA (Closer Economic Partnership Arrangement), the co-operation between Hong Kong and the mainland is stronger. We have already hired professionals from Hong Kong. However, the advantages have not been seen yet, and the arrangement seems to be more beneficial to Hong Kong." There are plenty of international events throughout the year to fill the calendar. In September 2004, Shanghai will host its first Formula One Championship series race. The Grand Prix circuit, which can host up to 200,000 spectators, is located in the city's north-western suburb of Anting. The hotel industry is moving ahead. The Shanghai Marriott Hotel Hongqiao is one of the five-star hotels closest to the F1 circuit. Centre complex Opened in September 2000, the 313-room hotel is 3km west of the central business district in Hongqiao Development Zone, the home of ShanghiMart, Shanghai International Trade Exhibition Centre and Shanghai Everbright Exhibition and Convention Centre. The 7,000 sqm Agricultural Exhibition Centre adjoins the hotel complex. The Marriott Hongqiao is ten minutes and 45 minutes drive from Hongqiao International Airport and Pudong International Airport, and 15 minutes by car from downtown respectively. Thanks to the extensive hardware and convenient location, 95 per cent of the hotel's business comes from corporate and meeting groups and individuals. Director of marketing Julian Wong lauds the occupancy rate. "We achieved a 95 per cent occupancy rate on 15 January, which is very encouraging given that business usually runs slowly before the Chinese New Year." He adds: "We achieved an average occupancy of over 70 per cent for 2003, which is very good. We were among the top five hotels in Shanghai in terms of performance in 2003." For corporate clients, the US and China are two key markets, followed by Japan, Hong Kong and Europe. Marriott Hongqiao has a grand ballroom of 745sqm, divisible into three equal parts of 248sqm. It can hold 899 people theatre style and 466 people classroom style. The ceiling is 7.6m high. The glass foyer right outside the ballroom is a unique feature. Guests can enjoy cocktails under the tilted glass ceiling. The foyer can hold 200 people theatre style and can also be a banquet venue for 160 people. Located on the same floor are six function rooms. One can be divided into two parts. The business centre, a poolside terrace and the health club are also located on the same floor. Two more function rooms and two breakout rooms are located one level down. Wong says the hotel benefits from the location. "Since there are exhibition venues nearby, hotels in Hongqiao district are full whenever there are trade fairs." He believes room rates in Shanghai tend to fluctuate a great deal with demands. "The Peak seasons in Shanghai are March, April, September, November and the first half of December. There will be a 25 per cent increase in room rates during the high season." Wong says meeting business will continue to be important for the hotel. "There are many significant international events to be held in Shanghai this year. The F1 race is a good example. We expect CEI business to have a further increase." Bookings suggest that 2004 will be another prosperous year for the hotel. "More than 50 per cent of the rooms are already booked for the period of the F1 Championship in the last week of September," Wong adds, "we will arrange special decor three to four months before the event." There are 128 rooms on the two club floors. There are DVD players in all club-floor rooms. Broadband internet access is available in all rooms. The hotel is working on increasing the number of guest rooms. The first Four Seasons property opened in 2002 on Weihai Road in downtown Puxi. The hotel has 360 rooms and 79 suites. Director of public relations Hilda Looi is positive. She says: "The hotel has picked up well after SARS. Many people travel to Shanghai for business." She believes the government's support counts. "There are so many projects going on in Shanghai, such as the World Expo in 2010. The Chinese government is very aggressive in promoting Shanghai. Domestic groups are moving widely around China and there are plenty of multinational companies travelling into the city for business." To provide a good environment for business travellers, all guest rooms are installed with high-speed internet access. The fitness centre is open 24 hours per day. For meeting facilities, located on the third floor is a 690sqm grand ballroom that can accommodate up to 950 guests theatre-style and 400 people for banquets. The venue can be configured into halves or thirds for smaller groups. It features a built-in stage and giant screens, hi-tech and hi-speed internet facilities. Video-conferencing and simultaneous facilities can also be arranged. Located on the same floor are two meeting rooms of 140 sqm, and a pre-function area of 330sqm. Four additional meeting rooms, two pre-function areas and the business centre are located on the fifth floor. Pudong growth The Hongqiao Airport is 14km away, while the Pudong International Airport is 47km away from the Four Seasons Hotel Shanghai. A short walk from the hotel is the People's Square and the Shanghai Grand Theatre. Across the Huangpu River, Pudong's rapid development has surprised everyone. Although the World Expo is five years away, Shanghai is boosting the infrastructure of Pudong since two thirds of the World Expo events will be held on this side of the Huangpu River. To the east of the river, the St. Regis Shanghai has 318 deluxe guest rooms including 48 suites and the largest standard room in Shanghai, each measuring 48sqm in size. All hotel guests can enjoy the service of the executive lounge. Director of sales and marketing/executive assistant manager David Katemopoulos notes that the St. Regis philosophy is to treat all guests equally. On average, 85 per cent of business comes from corporate travellers and meetings. As far as key markets are concerned, 22 per cent of business comes from North America, 20 per cent from Southeast Asia, 18 per cent to 20 per cent from mainland China, while Hong Kong amounts to 16 per cent and Japan 18 per ent, with the rest coming from Europe. Competition is keen. Katemopoulos says: "Our direct competitors are Four Seasons, the Grand Hyatt and the Ritz-Carlton Portman. Other competitors include the Shangri-la, the JW Marriott and the Westin." Booking times He continues, "So far, the booking situation is very positive. We already have enquiries from meeting groups for this coming October and November. However, booking lead time is getting shorter, especially with local companies. In some cases as short as one week. "On average, booking lead time ranges from two and a half weeks to nine months. Overseas companies tend to book earlier." The hotel's ballroom can accommodate 320 people theatre style . There are nine function rooms hosting 20 to 100 people. Katemopoulos says experience tells clients that it is better to book earlier. "Hotels in the city were full in September, October and November last year because of several large trade shows. Therefore, people realised the need to book early. This year, there will be several major exhibitions in Shanghai and many hotels will be booked out." Katemopoulos says the best selling point of the St. Regis is its exclusivity. "Once you have booked the ballroom, the venue is all yours. It is suitable for 150-people meetings." Hotel room rates in Shanghai are expected to increase in 2004. Katemopoulos anticipates, "On average, room rate will go up anything between 5-to-15 per cent depending on each individual hotel." The Pudong Shangri-la situated in Lujiazui finance and trade district has 606 rooms. The property stands along the Huangpu River, overlooking the spectacular sight of the Bund. In 2005, this CEI-specialist hotel will open a new extension, adding 375 rooms (including 70 suites), a 1,800sqm ballroom and a floor of function and meeting rooms. The new wing will have a soft opening in May 2005. To enhance its service, the hotel set up a specialised CEI department that is independent of the sales and catering team. CEI specialists Shangri-La director of sales and marketing Dexter Chia thinks there are not many hotels that can claim themselves as CEI hotels. "To be a real CEI-specialist hotel, the number of rooms has to be at least 700." Chia mentions other must-have criteria. "The hotel won't work if there is only one ballroom. If there are two ballrooms, one of them can be used for meetings and the other one can become lunch or dinner venue." He also says, "The new extension is a completely different product for us, 80 per cent of the 375 rooms will be premium rooms and suites. It is definitely a place for corporate clients." In April, the hotel will have wireless broadband internet access in all public areas, health club and guestrooms. Chia forecasts that demand for CEI venues will keep growing in Shanghai in 2004. "The demand is here, but the supply is not enough. There is no good PCO and DMC. They are still doing things in a very local way." He goes on to say: "Logistics is a big problem for overseas groups coming into Shanghai. Delivery and customs clearance are difficult when event organisers need to have conference materials delivered into the city." Shanghai still has some way to go before becoming a truly world-class CEI destination, but its constant improvements and palpable energy are driving it there.