ShanghaiTex Questions

this issue goes to press in late April, the question remains whether ShanghaiTex will
open on June 2 as planned, or face rescheduling due to the threat of poor attendance related to the
Severe Acute Respiratory Syndrome (SARS) crisis. The impact of SARS on individual health, business
travel, as well as the global economy should not be dismissed.

Shanghai, at this writing, has reported two people in a city of 17 million with the
mysterious SARS virus. Francis Markus, a BBC correspondent, noted the skepticism Shanghai’s
inhabitants have as to “how China’s business hub could have so few cases while numbers have
skyrocketed elsewhere.” The World Health Organization (WHO) is currently investigating further.

In the same BBC report, WHO praised Shanghai for its efforts in controlling SARS. Dr.
Wolfgang Preiser, a member of WHO’s Shanghai team, stated, “The situation in Shanghai was nowhere
near as bad as in Beijing because the authorities had acted much faster to monitor and prevent the

Although textile executives are generally of the intrepid sort, both attendees and exhibitors
will weigh the personal and business consequences of their actions. In the end, the decision to
attend or not may be preempted by the city of Shanghai’s actions potentially halting all
exhibitions, which will be a serious blow to the city’s economy.

Bloomberg News has reported that Shanghai is scheduled to host 182 exhibitions from late
April through the end of 2003. The Shanghai Convention Exhibition Industry Association reports the
city generates an estimated 1.8 billion yuan ($217 million) annually through exhibitions and

Shanghai aside, the overall consequences of SARS are even more far reaching. Asian economies
are starting to deal with mounting fallout from the syndrome. The World Bank has cut its regional
economic forecast, and threat of exposure to the virus is having a chilling effect on China’s
explosive growth.

As China’s overwhelming textile and apparel exports expansion charges toward 2005, one can
only wonder to what extent SARS will impact the supply chain and the intense globalization the
industry is experiencing.

Exhibitors and attendees alike may need to reshuffle their schedules for a December show. If
so, what does this mean for ITMA 2003 in Birmingham, England?

May 2003