The global economic downturn is likely to impact China's largest trading expo, China Import and Export Fair, a spokesman for the event said yesterday.
Mu Xinhai said this year's spring session of the fair, commonly known as Canton Fair, would be the most difficult one in recent years as the global financial crisis has spread.
The fair saw a dip in business last October, when the crisis was just beginning to be felt. The number of overseas buyers who attended the autumn fair dropped by 9.08 percent and the value of exports reached during the event fell by 17.5 percent.
It has been reported that some international buyers have cancelled participation at the fair, as demand in developed economies have turned weak.
The Guangzhou Hotels' Association, which includes more than 2,000 hoteliers in Guangzhou, said last week that room rates during the 105th session, to be held from April 15 to May 7 in the southern coastal city, would be 20 percent lower than those of previous years.
Lin Weimin, an official from the association, said reservations were down significantly in comparison to past spring fairs. "The fall in reservations shows the impact of the global financial crisis on the real economy is growing," Lin was quoted by Xinhua as saying.
As a result, hotels in the city have lowered room tariffs to lure more customers. Previously, room rates during the fair were often among the highest during the year, and many exhibitors had to book rooms months in advance to ensure a place of stay.
"We are taking initiatives to adjust our strategy and attract more guests," said Lin.
The organizer of the event is also trying to get in as many participants as possible by offering favorable incentives. It has lowered the stand fee for exhibitors by 1,000 yuan, to 3,000 yuan, the first time it has done so since the fair started in 1952. The organizer also held promotional events in several countries prior to the fair to attract as many participants as possible. Mu said invitations had been sent to 800,000 overseas buyers.
Some of the measures seem to have worked. A total of 55,057 stands have been booked by exhibitors, exceeding the number at the previous session, Mu said.
The Canton Fair is always regarded as a barometer of China's foreign trade.
China's exports have declined five months in a row. According to the latest Customs' figures, exports fell 17.1 percent to US$90.29 billion in March, after a record 25.7 percent drop in February.
(China Daily April 14, 2009)
