Dunhuang, a historical city in northwestern China's Gansu province, announced in Shanghai on March 20 that it will allocate funds totaling 35 million yuan ($4.83 million) in support of its convention industry.

The city, located in an oasis in the desert, was an important trading town along the ancient Silk Road and home of the renowned UNESCO World Heritage site of Mogao Caves.

The city held a news conference at the Changyang Campus in Shanghai on Thursday, introducing its latest efforts to develop the city into an international convention center, and calling on businesses from Shanghai to hold exhibitions, conventions and other events in Dunhuang.

A special fund of 10 million yuan and another government guidance fund of 25 million yuan will be allocated to support the development of conventions and exhibitions, as well as construction of convention venues, training centers and other project facilities, the city announced in Shanghai.

Dunhuang will provide a subsidy of up to 300,000 yuan to any national and international exhibition held in the city, and up to 100,000 yuan to any conference. The construction of a new convention center will receive a subsidy of 1 to 5 million yuan.

Last November Dunhuang Contemporary Art Museum was founded at the Changyang Campus. The opening exhibition named Staging Dunhuang features cultural relics from Dunhuang and replica of the frescoes in Mogao Caves, as well as modern interpretation of Dunhuang culture by renowned contemporary Chinese artists such as Zhang Huan, Ding Yi and Ni Youyu. The exhibition will run until May 10.

"We sincerely invite everyone to come visit Dunhuang, and join in the development of Dunhuang," said Wang Yanqun, Party chief of Dunhuang. "We will do our best to provide service in all aspects to facilitate the development of our convention industry."