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Capital plans for more hotel rooms
( 2003-11-14 23:10) (China Daily)

In anticipation of a soaring increase in tourist numbers for the 2008 Olympics, the Chinese capital is stepping up the speed of hotel construction by 7 per cent annually, in terms of guest rooms.

More than 800,000 foreigners are expected to visit Beijing during the 2008 summer games, and the city needs 230 more star-graded hotels to meet the huge demand, according to the city's tourism bureau.

Most of the new hotels will involve the renovation of old hostels and training centres, which are usually affiliated with governmental institutions or State-owned enterprises.

"In addition to upgrading the actual buildings, these accommodation facilities must also update their management and service efficiency,'' said Yu Debin, vice-director of the bureau, at a two-day international forum on the hotel industry which opened on Friday in Beijing.

"Private investors are also being invited to invest in the renovation of the old-style travel accommodation facilities,'' Yu said.

"Actually, we are encouraging more State-owned hotels, even those with star grades, to get involved in private capital and diversified ownership to become more competitive in the new market-orientated economy.''

There are currently 576 star-ranked hotels in Beijing, of which only 60 are foreign-invested joint ventures. However, these foreign-invested hotels account for 56 per cent of the total revenue of the city's hotel industry, according to Yu.

Wei Xiao'an, a professor with the Chinese Academy of Social Sciences, said "Domestic hotels need to reform and integrate current practices in the hospitality industry with their own special features in order to compete with their foreign counterparts.''

 
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