In line with China's agreementwith the World Trade Organization, foreign investors will be permitted to hold shares in tourist agencies operating in China bythe end of 2003 and to set up solely-owned agencies by 2005.

Sun Gang, vice director of the State Tourism Administration, said Monday that the most obvious challenge facing domestic tourist agencies since China's WTO accession is brain-drain.

Tourist joint ventures which hope to expand their businesses nationwide will be eager to hire experienced and well qualified local people, said the official.

He recalled that at the start of the 1980s, many talented hotelstaff left state-owned businesses to seek higher salaries and better welfare packets in foreign joint ventures.

The trend has shifted only in recent years, when China's hotel business began maturing. A similar thing may happen in the touristsector, said Sun.

To date, China has eight joint-venture tourist agencies.

( November 20, 2001 )