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Service industry set to ride port boom
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But Tianjin still lags behind metropolises like Beijing and Shanghai, so the coastal city is moving to catch up and create more value in its modern service industry.

Tianjin Mayor Huang Xingguo said that the city should spare no effort developing a modern service industry, which includes financial services, logistics, commerce and trade - and importantly, tourism.

The local government said it is working to perfect the financial service system this year, bringing in more financial institutions and regional headquarters. Tianjin should also make innovations in financial products and stimulate the market, Huang said.

To strengthen other service segments such as logistics and commerce, he said the city should step up the construction of infrastructure and help enterprises improve their services in other ways.

The Tianjin tourism authority should integrate the city's tourism resources in 2008 and design new products and services, the mayor said.

Wu stressed that Tianjin should take full advantage of its position as an international harbor city and a future economic center in north China to further develop the service industry.

"Tianjin should not develop the service sector all by itself. Instead, the city should rely on regional cooperation to fuel its development," Wu said.

Tianjin should further make use of its dual role as a gateway for logistics and capital for the whole Bohai Bay-rim area, Wu said.

Impact of the Games

The coming 2008 Olympics is expected to bring unprecedented tourist numbers to Tianjin, which is both an opportunity and challenge for the city.

The appearance of the city, hotels and other service sectors will make a first impression for visitors, so the mayor noted the importance of window service industries to enhancing service quality and displaying the charm of Tianjin.

International tourism has not traditionally been big business for Tianjin. With some Olympics events and the Summer Davos forum set for this year, there will be a breakthrough in tourism and services, Wu contended.

Tianjin's service industry attracted more than half of the foreign direct investment in Tianjin last year.

By 2012, Tianjin's GDP is expected to hit 1 trillion yuan, with per capita GDP reaching $10,000. In five years, the service industry is projected to contribute more than 45 percent to the city's GDP, according to Tianjin Bureau of Statistics.

(China Daily August 1, 2008)

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