Xi’an is an intriguing blend of the old and the new, and a land of
countless business opportunities

China’s Silk Road Economic Belt initiative has been lauded for the transformation of Xi’an into a business hub. By Karen Yue

The city of Xi’an these days is welcoming more than the usual crowd of history buffs keen on exploring ancient Chinese treasures.

Chinese president Xi Jinping’s decision in 2013 to establish the Silk Road Economic Belt, an initiative to link China by trade with the rest of Asia and Europe, has led various industries in Xi’an to flourish and that, in turn, has drawn a higher volume of international business travellers to the city.

While official MICE statistics are unavailable, local MICE players have reported better business in recent years.

Li Shuyan, MICE and general manager of China Travel Service Head Office Northwest, based in Xi’an, told TTGmice in an interview that “this is all good news for the local MICE players”.

As a result of China’s pro-business stance, China Travel Service has seen an uptick in international government events such as trade missions and ministerial meetings on the Silk Road Economic Belt initiative involving trade ministers, as well as events by companies dealing in primary resources, fast-moving consumer goods and software – industries that are booming as a result of both the initiative and numerous trade missions to Xi’an.

Li believes that the software industry – backed by the new Xi’an High Tech Integrated Free Trade Zone and Samsung Electronic’s facility within (opened in 2014) – would, in particular, “bring many more meetings and trade events to Xi’an”.

The pharmaceutical and medical industries are also prospering, observed Diana Duan, director of sales with Angsana Xi’an Lintong in the outskirts of Xi’an city centre, aided in part by the presence of two hospitals and one university that is renowned in the western district of China.

“Xi’an hosts at least one major international pharmaceutical or medical meeting a month, most of which are held in the city for convenience, while Angsana Xi’an Lintong gets some of the smaller internal meetings as planners don’t mind a venue away from the business district for such gatherings,” Duan said, adding that the hotel has also hosted several luxury product launches as well VIP client parties and residential meetings by financial firms.

Xi’an Xunmei International Travel Service Co, which does mostly medical events, has benefitted from the surge in healthcare business in the city. It was the PCO for a 1,800-pax bone conference and the DMC for a 1,000-pax male reproduction conference, both held last September.

Nancy Lee, general manager of the company, added that “as north-western China’s IT and manufacturing hub, Xi’an also sees a lot a corporate traffic and related events”.

She said: “The global economy may be challenging this year but I expect China’s pro-business policy to enable continued growth of Xi’an’s MICE arrivals of 10 to 12 per cent.”

She also noted that major event owners were starting to rely more on PCOs in Xi’an.

“In the past, major business events in Xi’an were brought in by renowned PCOs in Beijing or Shanghai, who would then hire a local groundhandler to put things together. Today, more Xi’an DMCs are given the opportunity to perform PCO roles,” she said.

Although MICE in Xi’an is now thriving, Li thinks that there is still much room for improvement.

Li said: “Global conferences are the main driver of MICE business in Xi’an, most of which are driven by MNCs based in Beijing and Shanghai. However, Xi’an gets only 30 conferences on average a year, while China on the whole gets around 3,000.”

Limited air access direct from key global markets is an obstacle for international MICE planners considering Xi’an, lamented trade players.

Steven Wang, director of sales and marketing with The Westin Xian, said: “We didn’t see many overseas corporate meetings and incentives in 2015 due to the lack of direct flights, which makes it inconvenient for large groups and more costly to travel.”

However, subvention for international MICE groups – something that is being considered by the local government now – may help improve matters.

“We are talking to the tourism bureau about this, to offer such support to international business event planners. This will take time to happen though,” Li revealed.

Meanwhile, Jean Philippe Jacopin, general manager of Shangri-La Hotel, Xi’an, believes that president Xi’s trade policy has a part to play in improving the destination’s luxury appeal among travellers.

“Xi’an has become a much more desirable destination primarily as a result of (the policy). It has resulted in a greater demand for luxury accommodation (and) high-end shops and malls,” Jacopin said.

Today, numerous prominent hotels dot the city’s map, some in the commercial centre and others close to key tourist landmarks. Many of the international branded hotels come with meeting rooms and function spaces too.

Stiff competition in the hotel space has forced local hotels to upgrade their hardware and software, ultimately benefitting travellers.

Tourism players noted that the city’s luxury travel market is dominated by corporate travellers and special interest leisure groups.

Wang revealed that 85 per cent of the hotel’s guest are corporate. “Business travellers and meeting delegates have bigger budgets,” he explained.

And these wealthy business travellers are contributing valuable dollars to the local tourism sector.

Li said these travellers would extend their trips for pleasure,
requesting for special activities, such as a session with a local archaeology professor who could tell the stories behind historical finds.

“Luxury meetings are on the rise,” said Li. “Each group has 30 to 50 pax and much emphasis is placed on the itinerary. It must allow for business achievements as well as cultural exposure. Mercedes-Benz got us to put their business partners in a convoy of cars, driving through Shaanxi province (of which Xi’an is the capital) in search of artists specialising in traditional art form like pottery, paper-cutting and painting.”

Ideas for unique experiences are limited only by the DMC’s expertise and local networks.

Julia Shi, general manager of Diethelm Travel (China), said her company specialises in “extraordinary programmes” that are different from those in the market.

The company can take visitors into areas that are usually off-limits, such as the reconstruction site within the Mausoleum of the First Qin Emperor, where archaeologists fix broken terracotta statues, as well as special vaults in the Shaanxi History Museum and Xi’an Museum, and offer unique activities such a digging experience at The Yangling Mausoleum of the Han Dynasty.

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A memorable Song of Everlasting Sorrow

One can always trust the Chinese to put on a spectacular ‘live’ performance. The widely-acclaimed opening ceremony of the 2008 Summer Olympic Games in Beijing, and the celebrated Impressions series performed in scenic outdoor locations around China that are produced by famed director Zhang Yimou should all come to mind.

Visitors to Xi’an have an opportunity to catch a mesmerising performance in the great outdoors too.

Set in the beautiful surroundings of Huaqing Pool, a complex of hot springs at the foot of Mount Li in the quiet Lintong County, The Song of Eternal Sorrow show tells the tragic love story of Tang Dynasty Emperor Xuanzong and his concubine Yang Yuhuan through a spectacular performance of song, dance and pyrotechnics.

The show is presented by a massive troupe of talented dancers and stuntmen, all decked out in elaborate ancient garb. A haunting tune adapting the famous ancient poem, Song of Eternal Sorrow, tugs at the heartstrings, completing a show that one will not easily forget.

The show holds special meaning for Xi’an and Lintong County, as Xi’an used to be the ancient Chinese imperial capital of Chang’an while Huaqing Pool was part of the emperor’s Huaqing Palace where the star-crossed lovers used to luxuriate together in the hot springs.

Corporate groups can choose to book VIP seats, which come with light refreshments, otherwise seats in the middle section are good enough for a clear view of the performance. – Karen Yue