Nanning, capital of Southwest China's Guangxi Zhuang Autonomous Region, will see the establishment of the city's first-ever luxury hotel chain soon. The project will facilitate the region's fast-growing tourism and business development, local government officials said.

Chen Xiangqun, mayor of Nanning, said at an investment promotion seminar in Hong Kong on Saturday that two Shangri-la hotels will be built in the city to meet the growing demand for quality accommodation among businessmen and tourists.

"With the tourism industry flourishing and the growing number of business travelers in the city, we need quality accommodations that are up to international standards," Chen said.

Government officials and representatives of the hotel chain will discuss the details soon, Chen added.

A group of 32 government officials from various sectors took a four-day tour in Hong Kong promoting Nanning's business environment and investment opportunities. They have met delegates from the Hong Kong Trade Development Council and chambers of commerce.

Hong Kong is Nanning's largest overseas trading partner.

As of the end of 2007, a total of 239 Hong Kong companies set up businesses in Nanning, involving an investment of $2.4 billion, the Nanning Bureau of Investment Promotion said.

Hong Kong investors in the capital city of Guangxi have invested $100 million in the first quarter this year.

Nanning, the host city of the annual China-ASEAN Expo, saw a gross domestic product of 106 billion yuan in 2007, a jump of 17 percent year-on-year.

Following the success of the expo, there has been an influx of well-known enterprises setting up businesses in the city.

The fifth China-ASEAN Expo will be held from October 20 to 23 in Nanning, with the focus on sustainable development and its results.

As of 2007, the total population of Nanning was 6.83 million, among which 2.59 million were of the Zhuang ethnic group. Thirty-five ethnic groups currently live in compact communities in Nanning.

Nanning is the only city in all the autonomous regions on the mainland that features a southern flavor, together with open coastal areas.

(HK Edition 04/21/2008 page1)