Features

The changing face of Shanghai

16 Jun 2008 by Sara Turner

Fast-paced and commercially focused, Shanghai has paved the way for modern China. Felicity Cousins follows the city’s plans as it prepares to host its biggest event yet

In the centre of Shanghai, opposite People’s Square, stands the Shanghai Urban Planning Exhibition Hall. Over the doorway, digital numbers morph into one another, counting down the days until the city hosts the biggest event in the world. In 2010 it will be the location for the World Exposition (World Expo), with around 200 countries set to take part, and a staggering 70 million visitors expected over the six-month period.

The first World Exposition was held by Queen Victoria in 1851 in Hyde Park, London, to showcase Great Britain’s success as an industrious and inspirational nation. Crystal Palace was built especially for the displays and the Queen was so enamoured with the design that, when the exhibition was over, she had the whole glass structure moved and rebuilt as a permanent palace in south-east London.

Although Crystal Palace has since burnt down, World Expo has come astoundingly far, with a guaranteed spotlight shining on any host nation, along with hundreds of countries showcasing their own achievements. Shanghai has set aside 5.28 square kilometres between Nanpu Bridge and Lupu Bridge along both sides of the Huangpu River for the event. The theme is based around urban life and the tag line is: “Better city. Better life.”

This should come as no surprise. Shanghai is the largest economic and transportation centre in China and, according to the Rough Guide to Shanghai, has since the early 1990s been the fastest-growing city in the world – ever. By 2020, it is predicted to be the richest economic region in the world.

Theresa, my guide from Destination China, explains the rapid development of the city. We are standing on the most famous street in Shanghai – the Bund (also known as the Champs-Elysées of China) – which features some of Shanghai’s most beautiful colonial buildings, from the Peace Hotel to the Bank of China. The Bund was the centre of commerce in the late 19th century, as a result of the investment from international banks and autonomous foreign concessions, including the British and the French. Today, the elderly come here for romantic walks along the waterfront, and the young for the nightlife.

On the opposite side of the river is the modern face of Shanghai, the skyline of Pudong. “Twenty years ago all of that area was rice paddies,” says Theresa, pointing to the impressive cluster of buildings, standing like a group of punk rockers, all with their own distinctive hairstyle.

It’s the tops of the buildings which distinguish them from each other – each architect trying to outdo his predecessor. “The city is changing so much now that every six months we have to produce a new city map,” she adds.

To get a better idea of the scale of Shanghai’s plans, we head to the Urban Planning Exhibition Hall. Inside the cool interior is a large room with a perfectly sculpted scale-model of the city. Pudong is still growing outwards (with the construction for World Expo) and upwards too – the Shanghai World Financial Centre is nearly finished and will be the tallest building on mainland China and the third-tallest in the world. It will also house a Park Hyatt on floors 79-93, making it the tallest hotel in the world. Theresa says: “In Pudong everything is bigger and better.”

It does seem like a dream neighbourhood – we watch an IMAX film, which takes you on a virtual 3D journey, swooping through spotless traffic-free streets of Shanghai, with a spookily calm voice-over repeating: “Better city. Better life.” It certainly gives you an idea of the scale of the megalopolis (and makes you slightly giddy), but it is not the real world.

Ian L Jones is general manager of the brand new Swissotel Grand Shanghai in the Jing’an business district on the opposite side of the river from Pudong, (full review on page 64). Chatting to him
in the Flow lobby bar of the hotel, he explains that the city needs to keep up with the pace it is setting itself. “Shanghai is fast becoming Asia’s hottest MICE location, with a year-round programme
of corporate meetings and events that will culminate in the 2010 World Expo.”

Looking around the new hotel, it has anticipated the increase in MICE business, with two ballrooms, six function rooms and dedicated conference staff. But the problem is not with the venues, as Jones explains: “With Expo, the problem is the infrastructure, and actually getting to those conference centres in Pudong. It could take an hour in the traffic from Jing’an, so they really need to sort out the infrastructure.”

The government does have one way of controlling the traffic – by putting off potential car drivers altogether with extortionate prices for licence plates (and thus the right to drive a car). Theresa explains that you have to bid for a car licence plate at auctions and prices can reach CNY50,000 (a hefty £3,600) – although this has recently dropped to a more reasonable CNY35,000. People will pay these prices because having a car is a status symbol in China.

If the roads are a cause for concern, there are other options. The Maglev train makes the 30-kilometre journey from Pudong airport to the city in an incredible seven minutes and 20 seconds and costs CNY50 one-way (as opposed to up to two hours in a car). And the subway system is good too. There will be 13 lines by the year 2010, and 18 by 2020.

While the infrastructure may pose a problem as visitor numbers increase, there will clearly be no shortage of somewhere to stay. All the big players are here: Intercontinental, Hilton, Shangri-La, Marriott, Starwood, Hyatt, Four Seasons, Rezidor and Sofitel. In fact, at the moment there are so many options that occupancy in top hotels has been falling. Swissotel’s Jones explains: “With more and more hotels opening up in Shanghai, occupancy in five-star hotels has been falling over the last three years, ranging between two and five per cent.” However, Jones also points out that the average occupancy rate is growing between three and ten per cent, putting Shanghai in third place in Asia after Hong Kong and Tokyo.

With the developments in Pudong, World Expo, and the government commitment to leisure tourism as well as business, the big names have no qualms about continuing their expansions, including two new Shangri-La properties, another Four Seasons, a W Hotel and a Park Hyatt opening in the next few years. Middle Eastern-brand Jumeirah is also due to launch its first Asia-Pacific property in the city in November.

With all this development, walking along Shanghai’s modern neon-coated Nanjing Road, towards the skyscraper skyline of Pudong, it is sometimes easy to forget the way it was. The city certainly feels Western and not much heed has been paid to the old-style Shanghainese buildings which once defined the area. Sixty years ago, 60 per cent of the population lived in the tiny traditional houses, their lives played out on the streets, from eating meals to washing and working. Today, most examples of the city’s cultural past have been destroyed to make way for the “Better city. Better life.”

Jones says: “Much more effort should be put in to stop these places being torn down. In a year’s time, the market around the corner from here [the Swissotel] will not be there. Some areas of the city are protected by the government [like the French Concession], but it’s a shame more isn’t being done. Soon it will be like the Beijing hutongs – just for the tourists to look at rather than the traditional way of living. Fortunately, the Shanghai municipal issued regulations and started to protect some of the representative historic buildings built before 1949, including some residential areas.”

There is one sanctuary for tradition – the old Chinese city, with its wonky streets, shops and teahouses, as well as the delightful 16th-century Yuyuan Garden. There is a definite feel of the past, despite the swarms of tourists. We stop to watch some cooks making the famous xiao long bao (pork dumplings) in a window front, before heading to Lu Bo Lang Restaurant to try them. As I struggle with my chopsticks I ask Theresa if all the work for World Expo will be completed on time. Without a pause, and with a look of surprise she replies: “Yes, yes. Of course.” And I believe her.

Kunshan: From backwater to business centre

Just outside shanghai (18 minutes on the fast train or an hour and a half by car) is Kunshan. It’s a small town with a population of around 600,000 people, there are no skyscrapers to speak of, and ten years ago the area was a blanket of fertile farmland with rice paddies patchworked between gently flowing rivers.

How things change – today, Kunshan is one of the most important economic areas in the country. It has the first “export-processing zone” in China (tax-free options for companies exporting their goods) and business here contributes CNY110 million towards the GDP.

Recognising the area’s potential, the government has made it easy for foreign investors to set up shop, offering the first two years tax-free, then the following three years at half-price. This generous starter pack has seen 3,500 foreign investment companies (the majority Taiwanese and American) from over 55 countries, moving in and investing US$20 billion so far.

Rainer Tenius, general manager of Swissotel Kunshan (formerly a Shangri-La), says Kunshan’s success is partly down to its location: “It is 55km from Shanghai and 37km from Suzhou, and near enough to both airports to be very convenient for investors – plus there is cheaper ground rent here than in Shanghai.” There is also a high-speed railway from Shanghai to Beijing via Kunshan which takes five hours.

From the top of the Swissotel, Tenius points out landscaped parks and walkways and, below us, the hotel terrace with its new beer garden has a tranquil setting over a gentle waterway. It’s quite a contrast to the fast-paced buzz of Shanghai. Apart from the hotel bars, the only evening entertainment I saw was a huge karaoke hall, apparently very popular with the Taiwanese.

Water is an important part of Kunshan and it is near Yangcheng Lake, famed for its freshwater crab, which draws huge numbers of both domestic and international tourists to the area during crab season (between September and November).

Also close by is the well-respected and hugely popular 900-year-old water town of Zhouzhuang (pictured below). It’s a good place to barter over some handcrafted gifts, but you have to be prepared for the hordes of Chinese tourists in their matching caps and umbrellas. (For more details, see Brent Hannon’s Great Escape feature at businesstraveller.com.)

On our way to Zhouzhuang we pass three industrial parks. One produces milk-carton packaging and another additives for ice-cream, while the high-tech industrial park churns out a staggering quarter of all the world’s laptops.

There are plans for more five-star hotels to move into Kunshan, adding to the local brands. At the moment, the Swissotel is the major international hotel in town, offering 387 rooms and suites, a grand ballroom with a capacity for 500 people, two restaurants and the Crystal bar. There is also an indoor swimming pool as well as a spa and fitness facilities.

Tenius says that the town is a beautiful place to live and work in and believes it will expand rapidly over the next few years. It’s easy to see how this could happen.

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