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Shanghai Expo on the verge of losses

2010. 9 August

Now on its third month, the six-month-long Shanghai Expo, according to an operation report released by the Bureau of Shanghai World Expo Coordination, is of few hopes for those who tought it would boost in profitability.

( For the first three months, the cash brought up by the expo's ticket sales summed up to 4.86 billion yuan ($718.34 million); retail revenues (including food & beverage and other business retails) brought 1 billion yuan in profits
and sponsorships reached about 4 billion yuan making the event's total cash in-flow for the first three months hit the mark of 11 billion yuan.

Direct income sources for the Expo mainly include tickets sales, sponsorships, and licensed products sales.

For many, this number may be astounding. However, according to official data, total investments for the event were of 28.6 billion yuan. And excluding unpredicted fees like banking interests to cite one, the total expenditure mat have been much larger than actually thought.

Based on previous Expos, ticket sales contributed 50 percent of the incomes, and therefore whether the Expo can attract enough visitors is key to whether it can make profits, according to media reports. By July-end, Shanghai Expo had attracted 34.82 million visitors. The bureau planned 70 million visitors for the six months previously.

Analysts believe that an important key to a lucrative Expo 2010 is the post-event expo park located at the city's center. Revenues of all kinds are expected to originate from the park in the future.

The bureau, however said that although prospects for the post-event are good, they are hard to predict.