Hotel equipment makers from 11 countries and regions filled more than 500 square meters at the Shanghai New International Expo Center in Pudong. With huge posters and eye-catching models, their booths were far more impressive than those of domestic counterparts.

"The number of overseas exhibitors at the event is a record," said Yang Kun with the organizer Shanghai CMP Sinoexpo Co Ltd. "Some 110 foreign firms are taking part this year, compared with less than 70 in 2002."

According to coorganizer Shanghai Municipal Tourism Administrative Commission, overseas manufacturers have been lured by the potential in Shanghai's hotel business.

With the exhibition sector booming, Shanghai needs more hotels, especially four- and five-star units, to cater to the increasing number of business travelers, according to Chen Xueyu, an official with the commission.

Shanghai has 20 five-star and 27 four-star hotels, with the number of three-star and two-star units at 116 and 136, respectively.

Although Shanghai's inventory in five-star rooms has risen by 5 percent over the past three years, growth in demand has easily swallowed the increase in supply. This year, local five-star inventory is expected to increase by 17 percent.

"Fast growth in hotels surely adds to the demand for wares and other equipment," said Vivi Qiao with Arcoroc Serving Solutions, who has brought the French crystal ware to the Shanghai exhibition for the second time.

However, analysts said domestic hotel product suppliers are lagging in taking advantage of the business opportunity, because their product quality and brand awareness among customers hardly meet the requirement of luxury hotels.

"In some aspects, like glass and metal ware, foreign products are of a better quality," said Ouyang Mingsen of Jin Jiang Interna-tional Management Co Ltd.

"Besides, five- and four-star hotels usually need world-renowned brand pro-ducts to show their status," Ouyang Mingsen added.

(eastday.com April 10, 2003)