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NEW HOTELS FOR TOURISTS
(Daily Telegraph: June 22)
China plans to build new hotels in several centres to cope with 100 per cent increase in the flow of foreign tourist. A new 2,000-bed hotel is on the drawing board for Peking.
(The Express: August 30)
In a bid to attract foreign investors, China will devise a clever scheme to facilitate investors to recover their investment outside of China. The first experimental project under this scheme will be the building of a $1 million hotel in Canton by Hong Kong developers.
The sources also said that the hotel, with more than 600 rooms will be of international standard.
the Chinese government and the investors have sought out a com- promise which will enable China to develop her tourism and the investors to recover their investment within an expected period of time.
Take the proposed hotel in Canton as an example, all the coupons for the rooms in the hotel will be sold in Hong Kong or outside of China. The investors, being the operator of the hotel will therefore receive their money in this manner.
The hotel will be an affiliated member of an international hotel group and accordingly would come under the joint-management of the group and the hotel operator. Thus, holders of coupons sold under the name of the hotel group would be entertained in its various member hotels.
For example, an American tourist going to China buys coupons from the hotel group which will allow him to stay in its affiliated hotels in Tokyo, Hong Kong and other cities en route to China, and as well as the one in Canton.
Under the scheme, the investors of the proposed hotel would run it until they had recovered their capital and accrued a reasonable amount of profit, after which, the Chinese Government would assume sole control over the hotel.
(South China Morning Post: September 9)
Leading Hongkong property developers have already agreed in principle to build tourist hotels in several Chinese cities, sources said last night.
Chief executive officers or senior representatives from a number of major companies are expected to be invited to Peking next month to finalise the multi-million dollar proposals.
Among the companies involved are Hopewell Holdings, Sun Hung Kai Properties, New World Development and Sun Hung Kai Securities.
Cities where hotels are to be built include Peking, Canton, Shanghai, Hangchow and Kweilin. The border town of Shumchun is also being considered for such development.
(Guardian: September 12)
Press reports here say representatives from big property companies are negotiating with China on building multi-storey luxury hotels in Peking, Shanghai, Canton, Hanchow and Kweilin.
The reports say these hotels, if built, will like other shared projects, revert to China after investors have made stipulated profits.
William Callard, executive director of the Hong Kong Hotels Association says he knows nothing about the negotiations. However, he adds: "It is a very competitive business. Anyone who wants to build hotels in China will certainly not reveal information prematurely."
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