Shanghai's tourism sector is developing rapidly as the city prepares to host the 2010 World Expo.

On August 12, two foreign-invested travel agencies were launched in the city, the first of many overseas companies to enter the local tourist market, industry analysts believe.

The Business Travel International (BTI) of Great Britain set up its first joint venture in China with Shanghai Jin Jiang International. Named BTI Jin Jiang China, the US$6.8 million JV is Shanghai's first travel agency in which foreign investors have taken a controlling stake, with BTI holding a 51 percent share. The new company mainly targets the highly lucrative domestic business travel market.

The other newcomer is a travel agency wholly owned by Star Cruises, the world's third-largest cruise line. The subsidiary -- also the first of its kind in the city -- hopes to take the lion's share of China's emerging cruise ship business.

Shanghai Tourism Commission (STC) officials said the entry of foreign travel companies will help stimulate the local tourism industry, which is regaining momentum after last year's SARS (severe acute respiratory syndrome) outbreak. However, analysts say that it will still take some time before the recovery is complete.

The commission estimates that Shanghai will receive 3.5 million visitors from abroad this year, with revenue projected at US$2.6 billion. Domestic tourist numbers are forecast to hit 95 million in 2004.

The influx of foreign-invested travel companies is merely one part of the local tourism industry's development.

A number of travel and tourism infrastructure facilities will be put into use later this year, according to STC Director Yao Mingbao.

They include a travelers' call center, which will provide the latest local tourism information. People planning trips to Shanghai will be able to obtain information by calling the hotline at 962020. Tickets and hotel booking services will also be available via the hotline.

A city-level exchange center for qualified professionals in the tourism industry as well as a souvenir exhibition center will be put into operation soon.

Shanghai will see up to 50 tourism villages offering visitors a taste of country life by 2010. When completed, the villages are expected to have up to 30,000 beds and the ability to host 6 million people annually.

"Such infrastructure is essential to the local tourism economy in the long run," said Yao.

The facilities will help create a multidimensional tourism market, according to analysts.

Shanghai is not working alone in boosting the local tour and travel industry. The metropolis is working closely with neighboring Jiangsu and Zhejiang provinces to turn the entire area into a global tourist attraction.

A total of 16 cities in the Yangtze River Delta region signed a joint declaration to promote tourism in the area. Shanghai's 2010 World Expo will provide excellent opportunities for the industry.

Officials have vowed to improve links, cut costs and provide comprehensive travel information for visitors from home and abroad.

Through their bimonthly conference, signatories to the declaration have embarked on a number of projects, including promotional activities targeting female Japanese office workers and the drafting of a comprehensive travel and tourism map of Shanghai, Jiangsu and Zhejiang.

(China Daily August 19, 2004)