Xi'an is coming up trumps as it looks to restore its old glory

Chinese micro bloggers recently voted Xi'an the country's most frustrated and lost city. It was all in jest, but it fairly reflected the fortunes of the ancient capital, which has languished economically over much of the past 35 years even as the rest of the country has raced ahead.

It may be hard to credit it, but in its glory days Xi'an was not only the capital of 13 dynasties but also the world's biggest metropolis with a population of nearly 1 million.

How far it has fallen in stature is illustrated by the fact that these days its fame and fortune are eclipsed by dozens of cities in the country's east, and it has largely been reduced to depending on a campaign dubbed Go West that the central government designed to give the western regions a new injection of life.

The National Development and Reform Commission says 22 new infrastructure projects for western regions were set up last year with total investment of 578 billion yuan ($94 billion; 73 billion euros). From 2000 to 2012 the total amount of investment to the west was 3.7 trillion yuan.

Support will continue to flow to the region to support the building of infrastructure, but increasing emphasis is being placed on high-tech industries and local specialty sectors.

"Xi'an, the hub of the Northwest, and Chengdu, Chongqing the Southwest, are definitely coming into their prime years," says Zeng Zhaoning, professor at the School of Economics and Management, Xi'an Shiyou University.

One sign of what Zeng talks of comes in the shape of a factory being built by the South Korean electronics giant Samsung in Xi'an.

Building of the company's NAND flash memory plant in the city's High-Tech Industrial Development Zone began last year. The company has outlaid $7 billion in the first phase of the project, and the plant will start producing flash memory chips before the end of the year. Investment in the project's three phases will total $30 billion, Samsung says, and the factory is expected to generate sales worth 66 billion yuan a year, and attract 160 related enterprises.

This was Xi'an's biggest success in attracting foreign investment last year, and it is hoped it will help the city regain its status as an equal member of the golden triangle that is completed by Chengdu and Chongqing.

Last year Xi'an's GDP totaled 437 billion yuan. Although it rose 11 percent from the previous year and this increase was 4 percentage points higher than the country's average, that was in contrast with Chengdu's 814 billion yuan, and Chongqing's 1.2 trillion yuan.

Strong growth in the high-tech sector is powered by the city's more than 80 universities and colleges, and nearly 1,000 research institutions.

Xi'an's policymakers hope that Samsung's presence will help attract more high-tech companies so that its relatively small GDP will improve.

"After more than 10 years of growth, Xi'an is building up its skills base, and this needs to be complemented with energy supplies, transport and effective government services," says Gu Mengbin, a finance and investment expert at Shaanxi Academy of Social Sciences.

The city is also putting increased emphasis on tourism.

"Xi'an's development involves a couple of economic and social indicators," says Wang Changshou, director of the academy's Cultural Industry Institute.

"With our historic heritage and current industry structure, culture and travel will be the breakthrough."

In 2011 the city government enacted a 10-year plan to promote the city to become a top international tourist destination.

"Apart from the traditional tourist attractions such as the Terracotta Warriors, Big Goose Pagoda and the ancient city wall, we need to incorporate folk customs including the Shaanxi Opera, shadow puppets, pictures and drawings of Chang'an, and dancing and music of the Han and Tang Dynasties into the whole travel package," Wang adds.

One example of the city trying to bring culture and traditions to life for tourists is the spectacular Everlasting Regret, which is put on at Huaqing Palace twice a day from April to October. In it the celebrated poem Song of Everlasting Regret is turned into a dance performance that portrays the true story of the Tang Emperor Li Longji and his concubine Yang in Xi'an 1,000 years ago.

Other live performances aimed at tourists include the South Gate Ancient Style Welcome and the City Entry Ceremony.

The city says it drew nearly 11.5 billion yuan from tourism in the first quarter this year, up 25.7 percent on the corresponding period last year. There were 12 million Chinese visitors, up 24 percent, and 132,000 foreign visitors, up nearly 13 percent.

The US, Britain, Germany and Italy are Xi'an's top four sources for foreign visitors. While maintaining double-digit growth in these markets, Russian tourists were in the top 10 for the first time.

One thing that is keeping a cap on foreign visits is the paucity of direct international flights to the city. Most of the 29 international airlines that service the city fly via Beijing or Shanghai, the exceptions being Asian airlines. That acts as an obstacle in particular for European and US travelers.

But even that may be changing, because Finland's flag carrier Finnair has said it plans to start nonstop flights between Helsinki and Xian on June 14 with three flights a week in either direction until October 26.

Since 2007, too, Xi'an has been the permanent venue of the Euro-Asia Economic Forum, which has helped the city build its brand name.

But to those who are keen to see Xi'an thrive, there is still much to do. Zhang Yan, director of Culture and Travel Research Center, Shaanxi Academy of Social Sciences, says: "Setting up a travel services quality standard that coordinates sightseeing, accommodation, exhibitions, entertainment and transport in a comprehensive plan would be a great help to the city."

Contact the writers at zhanglei@chinadaily.com.cn and luhongyan@chinadaily.com.cn

(China Daily 05/17/2013 page16)