WORLD EXPO - SHANGHAI, 2010
Prepared by Adhiyanto Goen

History
World's Fairs originated in the French tradition
of national exhibitions, a tradition that
culminated with the French Industrial Exposition
of 1844 held in Paris. It was soon followed by
other national exhibitions in continental Europe,
and finally came to London where the first real
international exhibition was held.
From the first World Expo held in London in
1851, the world expos have been held
successively for many years. After the 1933
World Expo Chicago has set up its theme, the
following expos also began to have their special
themes.
Click here for more background

1993 - Taejŏn, South Korea
From 7 August to 7 November, 1993
108 nations participated
15 million visitors
Official web (Korean) - http://
www.expopark.co.kr/
Archive - http://en.wikipedia.org/wiki/
Expo_%2793

1998 - Lisbon, Portugal
From 22 May to 30 September, 1998
155 countries participated
10,128,204 visitors
Official web - http://
www.portaldasnacoes.pt/
Archive - http://en.wikipedia.org/wiki/
Expo_%2798

2000 - Hanover, Germany
From 1 June to 31 October, 2000
155 nations participated
25,210,000 visitors
Official web (Germany) - http://
www.expo2000.org/index1.php
Archive - http://en.wikipedia.org/wiki/
Expo_2000

2005 - Aichi, Japan
From 25 March to 25 September 2005
125 countries participated
22,049,544 visitors
Official web - http://
www.expo2005.or.jp/en/
Archive - http://en.wikipedia.org/wiki/
Expo_2005

2008 - Zaragoza, Spain
From 14 June to 14 September 2008
104 countries participated
6 million visitors
Official web - http://
www.expozaragoza2008.es/
Archive - http://en.wikipedia.org/wiki/
Expo_2008

World Expo Visitors
70M
15M 25M
10M 22M
1993
1998
2000
6M
2005
“95 percent of the 70 million visitors would be native Chinese, and the 2008
remaining 5 percent were foreigners” said Zhong Yanqun, deputy
director of the Expo National Organizing Committee 2010 (forecast)

2010 - Shanghai, China
From 1 May to 31 Oct 2010
200 nations and international
organisations participation forecasted
70 million visitors forecasted
Official web - http://en.expo2010.cn/
Archive - http://en.wikipedia.org/wiki/
Expo_2010

INTERNATIONAL PARTICIPANTS' PAVILION
Concepts

Shanghai Intro
Shanghai is the largest city in China, and one of the largest metropolitan areas in the world,
with over 20 million people.
The famed Bund and its statues have for decades symbolized Shanghai's glamour and
positioning as the country's premier financial centre.
The focal point of the Yangtze River Delta economic development, Shanghai has become a global business
destination.
The development of Pudong, as the designated new financial hub of modern China (PRC) and home to the
Shanghai Stock Exchange and Shanghai Pudong International Airport, has also elevated Shanghai's status in
the financial sector.
The re-development and expansion of various industrial zones, as well as a booming tertiary sector has resulted
in strong economic growth over the past couple of years, averaging 16.5% per annum. By 2010, GDP is
estimated to reach CNY 150 billion.

Market Condition
The MICE segment has been a key demand generator for Shanghai hotels over recent years.
Favored for its international reputation and world-class facilities, the expansion of the New International
Expo Centre and hosting of World Expo in 2010 will reaffirm Shanghai's status as a premier MICE
destination.
Diversification of the city's leisure offerings, such as Chongming Island's "Green Tourism" and the
"Pedestrian Zone" in front of The Bund, are also expected to boost tourism demand.
While market fundamentals remain generally strong, Shanghai's five- star hotels experienced a slight softening
in ADR in 2007 for the first time since 2000 to record CNY 1,603.
An influx of new high-end rooms over the past three years has put some downward pressure on occupancy
levels and this is not expected to abate until mid-2009.
The majority of new properties are under construction in Lujiazui Central Financial District (Pudong), Jing'an
and Huangpu districts, while some properties are also under construction in satellite areas.
Source: Jones Lang LaSalle Hotels - Asia Overview Digest 2008

SHANGHAI CITY ARRIVALS
Source: Shanghai Municipal Tourism Administrative Commission
6M 6M 7M
4M
6M
3M 4M
4M
4M
4M
2004
2005 3M
2006 2M
2007
2008
2009 (July)
Foreign Total (not including Domestic)

International Flights Capacity to Shanghai Domestic Flights Capacity to Shanghai
Origin Airline Company Frequency Per Week
Origin Airline Company Frequency Per Week
Dayong Eastern Airlines 15
London England Airlines 5 Fuzhou Eastern Airlines 31
Guangzhou Eastern Airlines 45
Milan International Airlines 9
Guilin Eastern Airlines 14
Rome International Airlines 2 Haikou Eastern Airlines 21
Hefei Eastern Airlines 23
Paris Eastern Airlines 14
Huhehaote Eastern Airlines 7
Moscow Eastern Airlines 4 Jinan Eastern Airlines 12
Kunming Eastern Airlines 44
Frankfurt International Airlines 7
Nanchang Eastern Airlines 29
Vienna Austrian Airlines 14 Qingdao Eastern Airlines 27
Shenzhen Eastern Airlines 53
Vancouver Eastern Airlines 3
Xiamen Eastern Airlines 45
Los Angeles Eastern Airlines 7 Wuhan Eastern Airlines 33
Yantai Eastern Airlines 21
Sydney International Airlines 5
Wuyishan Eastern Airlines 7
Melbourne Eastern Airlines 3 Chengdu International Airlines 35
Chongqing International Airlines 21
Hong Kong Eastern Airlines 105
Guiyang International Airlines 12
Macao Shanghai Airlines 14 Beijing Shanghai Airlines 49
Haerbin Shanghai Airlines 14
Singapore Eastern Airlines 21
Xian Shanghai Airlines 28
Bangkok Eastern Airlines 14 Changsha Southern Airlines 14
Changchun Southern Airlines 17
Tokyo Eastern Airlines 21
Dalian Southern Airlines 31
Osaka Eastern Airlines 26 Sanya Southern Airlines 17
Shantou Southern Airlines 17
Seoul Eastern Airlines 30
Shenyang Southern Airlines 22
304
704

Market Analysis
Significant setbacks in travel from the largest source markets Japan and Korea, reflecting the impact of the
financial crisis on these two countries.
Travel from Japan recorded the largest decline, down by 54,292 overnight visitors, 19% less when
compared to the first quarter of 2008.
Arrivals from Korea dropped by 36,321 overnight visitors, down by 25%.
Visitation from the rest of Asia saw only a relatively modest contraction, at 1.6% on average, with Thailand and
Indonesia actually showing positive growth by 19% and 2% respectively.
Americas and Europe generated significantly less overnight visitors when compared to first quarter of 2008,
down by 14% and 17% respectively.
Source: Cushman & Wakefield - Shanghai Hospitality Report

Market
Supply
5-star hotel supply has been growing rapidly in Shanghai
over the last decade.
In the year 2000, there were less than 10,000 5-star
rated hotel rooms in the Shanghai market, however by the
end of 2008 that number grew to more than 25,000
rooms representing a compound average annual growth
rate of approximately 13.4%, most of which were added
to the Central Business District.
Several major projects in the Shanghai CBD area have
been postponed, the number of 5-star rated hotel rooms
in the city is still set to increase to more than 40,000 by
the end of 2012.
Source: Cushman & Wakefield - Shanghai Hospitality Report

Market
Performance
Between years ending March 2008 and 2009, market-wide
average occupancy of Shanghai’s 5-star hotels declined by 10.7-
percentage points from 67.7% to 57%.
Pressured by falling occupancies, hoteliers resorted to
discounting, with market-wide average room rate declining by
14.1%, from CNY 1,380 to CNY 1,185. Both negative trends
combined resulted in a significant overall drop in average
RevPAR by 27.3%, from CNY 935 to CNY 675 between YE
March 2008 and 2009.
The most significant decline was recorded in the first quarter of
2009, when Shanghai 5-star hotels experienced an alarming
40.3% drop in RevPAR, plummeting to CNY 447 compared to
CNY 749 in Q1 2008. This negative trend has been
experienced across all sub-markets in Shanghai.
Source: Cushman & Wakefield - Shanghai Hospitality Report

HOTEL PERFORMANCE
Source: International Branded Hotels of Shanghai (IBHS)
Y1,500
Y1,000
2006
Y500
2007
2008
2009 (July)
RevPAR ADR

OCCUPANCY
Source: International Branded Hotels of Shanghai (IBHS)
70%
35%
2006
2007
2008
0%
2009 (July)

Market Analysis
Source: hotel investment and advisory firm Jones Lang LaSalle Hotels in its Hotel Intelligence Report 2009,
research based on a sample of more than 9,700 guest rooms..
The average daily room rate of the city's luxury hotels dropped 24 percent year on year to CNY 1,225
(US$180) in the first five months while the occupancy rate dropped 14 percentage points to 45%.
“The weakened global economy and the consequently tightened travel budgets have dramatically affected
overseas tourist arrivals to Shanghai,” said Andreas Flaig, managing director with Jones Lang LaSalle
Hotels China. "As a result, the city's five-star hotels have started to significantly lower their room rates in a
hope to bolster the dwindling occupancy rates.''
Overseas tourist arrivals in Shanghai fell 6.2% year on year to 2.04 million between January and May.
The global economic crisis began to have a major effect on the local market in the second half of last year.
2008, the average daily room rate at Shanghai's five-star hotels fell 4% to CNY 1,552 while occupancy
rates dropped 10 percentage points to 56%.

World Expo Preparation
Currently there are more than 230 countries / organizations have confirmed their participation.
As one of China’s commitment when it bid for the event, room accommodation will be arranged by respective
country/organization/participant at their own desecration.
6 hotels located in the World Expo Village will be the main host/official appointed hotel:
InterContinental Hotel (400 rooms, owned by World Expo Bureau)
http://www.ichotelsgroup.com/intercontinental/en/gb/new-hotels/shanghai-expo
Jin Jiang Group Service Apartment (914 rooms)
Donghu Service Apartment (816 rooms)
3 economy hotels.
The balance for room shortage, it will be replenished through either service apartment or economy hotel
within 20 minutes away from the Expo site.
Other than that, it also needs to be prepared rooms for temporary visit for the respective country senior
government officer who comes to their country pavilion for celebration of own National Day.
Reservations Centre has been set up for the above case.
All related software and hardware is sponsored by the HUBS1 - http://www.hubs1.net/en/index_en.asp

Ticket
Official partners - China Mobile,
China Telecom, Bank of
Communications, China Post are also
the only authorized ticket agent.
Currently there are 24 approved travel
agencies authorized as the ticket
agent, however the ticket must be
packaged together with either flight or
rooms.
(travel agents listed on next slide)
i.e. - 6 days/5 nights for east China
travel, incl. Expo site visit, etc.
more authorized agents to come
soon.

Province / City Name of Travel Agency / Telephone
Beijing CITS HO / Tel. 4006008888
Shan Xi Province Shan Xi Business International Travel / Tel. 0351 5278652
Inner Mongolia CTS, Inner Mongolia / Tel. 0471 6281554
Jilin Province CYTS, Jilin Province / Tel. 0431 88529006
CTI Shanghai/ Tel. 021 62998278
Spring Travel Shanghai / Tel. 021 62520000
Shanghai Shanghai Airlines Travel / Tel. 021-62121029
Shanghai Tour Bus Center(SSBC) / Tel. 021 64265555
Shanghai Jingjiang Travel / Tel. 8008208286
CTS Wuxi / Tel. 4008860077
Jiangsu Province
Jiangsu Overseas Travel / Tel. 4008284008
CTS Zhejiang / Tel. 0571 87553583
Zhejiang Province
Zhelun Overseas, Ningbo / Tel. 0574 87733098
Anhui Province CYTS Anhui/ Tel. 0551 4296688
Fujian Province CTS Fujian / Tel. 0591 88371688
Henan Province Tourism Group Henan / Tel. 0371-68262878
Guangxi Province CTS Guangxi / Tel. 0771-2630616
Hainan Province CTS Hainan / Tel. 0898 66782882
Chongqing Overseas Travel Chingqing / Tel. 4008899922
Tibet Tibet Tourism Travel HO / Tel. 0891 6836626
Shanxi Province CTS Shanxi / Tel. 029-82403537
Yunan Province CITS Kunming / Tel. 0871-3566600
Gansu Province Comfort International Travel, Gansu / Tel. 0931-8725292
Ningxia Province CITS, Ningxia / Tel. 0951-6719795