FOR Nita Wu, October 16 was a big day because she was given a ticket to the outdoor opera spectacle "Carmen". Staged on a huge scale, with a set spanning 20,000 square metres in Shanghai Stadium, the grand show features fireworks, a fountain and live horses.

"I heard tickets for 'Carmen' were worth thousands of yuan, so how could I think of wasting it?" said the woman, who had taken the trouble to borrow a telescope so she could better enjoy the "very high-level" event.

Compared with the Carmen audience, the NBA pre-season game held at the Shanghai Grand Stage on October 14 seemed to attract a large number of fans who actually paid for their tickets themselves. Six random spectators interviewed by the Shanghai Star all said they had bought the tickets, costing 1,980 yuan (US$240) apiece, with their own money.

"I bought it after waiting in line for hours," said one young spectator, who didn't give his name. "The price was rather high for me, but since this was such a rare opportunity to see the Sacramento Kings and Houston Rockets with my own eyes, I gritted my teeth and paid up. I think I will have to cut back on other expenditures next month."

The entertainment market in Shanghai has been flourishing recently, with several major high-profile events. First came Formula 1, then the NBA and the first performance in Asia for the famed opera. Next in line will be "The Phantom of the Opera", to be staged at the Grand Theatre from the end of this year.

Money spent on entertainment is also at a record high. "Carmen" alone accounted for more than

50,000 tickets, divided into seven grades from 150 yuan (US$18) to 2,500 yuan (US$300), as well as 100 VVIP (very very important person) tickets priced at 8,000 yuan (US$970).

The NBA ticket prices ranged from 100 yuan (US$12) to 1,980 yuan. The price for the 56 VIP balcony seats was from 60,000 to 150,000 yuan (US$7,255 to

18,140).

"Cheap tickets are hard to get and expensive tickets are not affordable, so I have comforted myself with watching TV at home, which also gave a much clearer view than would have been possible at the event," said Xu Yongyi, an NBA fan.

One story about ticket prices for entertainment events in the city, carried in China News Week in September, quoted an observer who remarked that prices in the local market were "unbelievably high" compared with those in developed countries.

Costly experiences

The international norm in the entertainment market is for ticket prices to be no higher than 1 to 3 per cent of local people's monthly income. A ticket for a performance of Britain's Royal Ballet costs only 12 pounds, equivalent to the cost of a cheap dinner for two. In Shanghai, where the average disposable monthly income for a local resident is only about 1,300 yuan (US$157), a comparable ticket price would be under 50 yuan (US$6).

"That would be impossible! If ticket prices accorded with this international norm, all the performance organizers would be bankrupt," said Alex, an insider in the performing arts field. "In reality, every investor wants to make money. Popularizing the arts is just a slogan."

"I agree that the price of tickets is rather high, but they are still considered affordable in the local market," said Zhao Fengyu, media and promotion manager of the Shanghai Cultural Exchange Agency, the organizer of "Carmen". He said all the tickets for the event had been sold.

Even so, the company would be tallying a loss of 1 to 2 million yuan (US$120,000 to 240,000), given the enormous 20 million yuan (US$2.4 million) investment required by the event.

According to Zhao's rough statistics, "Carmen" tickets ranging from 150 to 300 yuan (US$18 to 36) accounted for about one-third of the total purchased. In keeping with the city government's policy to popularize the "elegant arts", most of these cheap tickets were sold in schools at a 70 per cent discount.

"According to our preliminary findings, Shanghai provides a potential market for expensive tickets," he added. "I have estimated the highest price acceptable for local people to be about 800 yuan (US$97), that's why tickets for events in the Shanghai Grand Theatre still always sell out."

"Opera is a luxurious entertainment for local people. They will only indulge in it once or twice a year, so they are willing to pay high prices," he added.

Take "Carmen" as an example. Eighty of the 100 VVIP tickets were sold, and another 5,000 tickets priced at around 2,500 yuan (US$180) sold out.

Top of the pyramid

"Generally speaking, the cheapest and the most expensive tickets always sell fastest, since they appeal to the most ardent enthusiasts, expat residents and enterprises," Zhao said.

Cultural and arts events are often considered to be excellent gifts for companies wanting to please important business clients. Box offices always see group purchase of high-grade tickets. Of the 80 VVIP tickets for "Carmen", Chen Tianqiao's Shanda Networking Development (one of the top companies in the country) bought 30, according to Zhao.

"These expensive tickets may just be a thin layer on the top of the pyramid, but they help us to cover our huge costs," Zhao said.

Ticket scalpers also "contribute" to the expensive tickets. Five hours before the opening of "Carmen", scalpers wandered around Shanghai Stadium collecting tickets.

Among NBA tickets, it was the expensive 1,980-yuan ones that were the most feverishly sought by scalpers. They re-sold such tickets after doubling the price, according to a report in the Oriental Morning Post. Even 380-yuan tickets fetched more than

1,000 yuan (US$120) after being marked up by scalpers. These profit margins supported organized scams, with experienced scalpers employing people to buy tickets on their behalf.

Zhou Zhiqiang, director of the performance operation department of the China National Grand Theatre, told China News Week that the way to improve the overall arts market was to lower the cost of tickets. "Every year, a few of high-price performances are essential. But cutting the cost of tickets is the best long-term strategy for creating a healthy entertainment market."

Yet some insiders doubt whether this will be an easy thing to achieve in the near future.

"The economic level and cultural traditions of developed countries differ totally from the situation in China. Their arts markets have been developing slowly over a long period, so their systems are now more mature," said Wu Jia, publicist for the Shanghai Dramatic Arts Centre.

"In some Western countries, going to the opera is almost as ordinary as going to a movie, but in Shanghai a visit to the theatre is still treated as a luxury due to the high price," he added. "We can't measure different countries at different economic levels using the same standard."

At Wu's centre, the average price charged for a ticket to see a local dramatic performance is typically in the range of 60 to 150 yuan (US$7 to 18).

"We have set comparatively low prices because we want drama to be a part of ordinary people's lives, but we know we haven't achieved this yet," Wu said. "Price should be more affordable so as to attract more ordinary local people, and not just affluent white-collar workers."