Club Med has launched in Shanghai. Before you have visions of a tropical resort on the city's doorstep, what the France-based company has opened locally is an office to promote its global "villages."

The new outlet is the latest in a growing number of foreign tourism businesses that have set up branches or joint-venture firms in the city, according to Zhu Chengrong, the Shanghai Tourism Administrative Commission's director of international tourism promotion.

Earlier this month, the UK-based BTI cooperated with Jinjiang International to found a joint-venture business travel service. Also, a US-based travel and culture development company signed an agreement with the city government to operate the Shanghai Tourism Festival over the next five years.

Such changes in the local travel sector are part of China's commitment for its entry into the World Trade Organization. Joint ventures were allowed to start up this year while the market will be fully open by the end of 2005.

"The foreign tourism companies' aim is to invest by themselves. Now they are scouting the market which is of great potential," Zhu said.

Joel Tiphonnet, president & chief executive officer of Club Med's Asia Pacific-Indian Ocean area, said yesterday that Shanghai was the company's first Chinese mainland office.

He was confident they could find about 25,000 members annually.

Established in 1950, the company has 130 villages in more than 30 countries and regions. It has 5,000 members on China's mainland.

Tiphonnet said the company was currently looking for a site to establish its first China Club Med.

Lijiang, Yunnan Province, is a leading candidate. The area is popular with foreign tourists attracted to its many different ethnic groups and beautiful scenery.

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