Shanghai, the financial powerhouse of China, recently disclosed ambitious plans to generate approximately $6.9 billion in metaverse-related revenues in the culture and tourism sectors by the end of 2025.
The city’s administration hopes to build 30 culture and tourism metaverse projects during this period, harnessing the potential of smart tourism through virtual performances, digital artwork, and augmented reality interactions.
Boosting the Economy with Smart Tourism
In a bid to stay ahead in the rapidly-evolving digital landscape, Shanghai is betting on “smart tourism.” The vision incorporates cutting-edge technologies such as artificial intelligence and augmented reality to enhance the tourism experience. The move mirrors initiatives by other major Chinese cities like Beijing, Nanjing, and Zhengzhou, which are actively investing in metaverse projects.
Following in the Footsteps of Metaverse Pioneers
Last year, Beijing rolled out a two-year metaverse plan focusing on the tourism and education sectors. While Shanghai’s five-year plan was announced earlier, its target appears to have been revised from an initial estimate of $52 billion in annual revenues by 2025 to a more conservative $6.9 billion. The city’s projected budget for the metaverse industry stands at $1.4 billion.
Similarly, Zhengzhou, the capital of Henan province, recently launched a fund of approximately $1.4 billion to attract metaverse companies, with an additional $7.08 billion set aside for future investments. Meanwhile, Nanjing City is advancing metaverse research through the “Blockchain Technology and Application Innovation Platform of China” project, initiated in May 2023.
Chinese Government Leads the Metaverse Charge
China’s approach to becoming a major player in the metaverse economy is distinct, with the government taking the lead. This contrasts with the metaverse push in other countries, predominantly driven by private enterprises. Shanghai plans to revamp its real-world tourist attractions with metaverse technologies, enabling tourists to engage with the sites via augmented reality. The plan also includes using avatars as tour guides and other related services.