However, the "impression of high security" Shanghai gives will help it cover the setback as soon as the fear of travel subsides, tourism officials said.

"Shanghai is a place assuring safety and is likely to win over tourists who change their destinations," said Chen Xueyu, senior official with Shanghai Municipal Tourism Administrative Commission Thursday.

The US-led war on Iraq has caused cancellation of planned visits by overseas tourists.

The city's three major travel agencies -- Shanghai China International Travel Service (SCITS), Shanghai China Travel Service (SCTS) and Shanghai China Youth Travel Service (SCYTS) -- all reported cancellations from overseas tourists.

At SCITS, more than 400 Americans called off plans to visit Shanghai this month. Some 300 Japanese told SCYTS they wanted to cancel their reservations to travel to the city.

Hotels in town also reported a considerable number of booking cancellations, mostly from American and European tourists.

On the other hand, locals having outbound tour plan apparently are sticking to the plans. "So far, no clients have put off or canceled their outbound package tours," said Yu Zhonghua with SCTS.

But he is worried that the interests in outbound tours among locals will subside with the Iraq war going on.

"It's possible that this war will bring down our business to the lowest in recent years," he said.

Yu and other officials admitted the impact of war will outlast the war itself, as tourism needs time to recover. But they showed confidence, citing the stability and growing economy in the nation.

Early this month, travel agencies in Shanghai stopped organizing package tours to Turkey and Egypt.

Security around the consulates compounds in Shanghai appears to be the same as usual Thursday. But the American School in Shanghai is to be closed today out of security concerns. The school will begin its weeklong spring break next Monday.

In Beijing, security tightened around foreign diplomatic compounds, including the U.S. and Iraq embassies.

(eastday.com March 21, 2003)