Shanghai to Attract Business Travelers to Boost Global Consumption

Shanghai aims to transform itself from a travel destination into a top global consumption hub, a senior city official said on Monday.

The city is focusing on attracting high-spending business travelers to bridge the gap with other international metropolises.

Zhang Guohua, a senior official at the Shanghai Municipal Commission of Commerce, shared the plans on the sidelines of the city's annual Two Sessions. Zhang was at the event to answer questions and process suggestions from local lawmakers.

Inbound travelers in Shanghai currently spend an average of US$1,000, significantly lower than other global cities, where it reaches about US$2,000, Zhang said.

The city's total daily consumption is about US$15 billion, but it accounts for just 1.5 percent of Shanghai's GDP. In developed global cities, this ratio often reaches 3 percent.

"We have huge room for growth in both visitor numbers and spending scale," Zhang told Shanghai Daily. "Our goal this year is to turn the flow of inbound visitors into actual consumption growth."

A key part of the plan is attracting more business travelers, who tend to spend significantly more than leisure tourists.

Business travelers attending meetings, incentives, conferences and exhibitions (MICE) typically spend about US$3,000 per visit, compared with US$1,000 splurged by regular tourists.

Shanghai already holds a strong position in the exhibition sector, hosting nearly 50 large-scale exhibitions annually, each exceeding 100,000 square meters. The city ranks first globally in this area.

According to a survey by the commission, 30 to 40 percent of foreign visitors come to Shanghai specifically for conferences and exhibitions.

However, the city faces a gap in international meetings. Shanghai currently ranks around 60th globally in terms of hosting such meetings, a decline from its previous standing of between 20th and 30th before 2019.

Zhang emphasized efforts to attract more specialized conferences, particularly in fields like artificial intelligence and biomedicine.

To support this growth, Shanghai is improving its payment infrastructure. While mobile payment is dominant in China, many foreign visitors still prefer credit cards.

The city is subsidizing merchants to install point-of-sale (POS) machines that accept foreign cards. Shanghai is also improving its foreign language services, he noted.

"We must ensure foreigners can consume confidently and conveniently without leaving their habits behind," Zhang said.

Shanghai is also expanding its tax-free shopping network, with over 1,800 tax refund stores, the most in China.

Foreign investment remains another priority. Zhang said the city plans to further optimize policies to encourage multinational companies to set up regional headquarters and research and development centers.

"We will improve policies to make foreign enterprises feel more recognized in Shanghai's business environment," he insisted.