On October 11, Cao Nianguo, director of DTZ, a global real estate advisory company, predicted in a press conference that the 2008 Beijing Olympic Games, the 2010 Shanghai World Expo and the booming tourist industry would drive foreign investors to invest heavily in the Chinese hospitality industry.
Cao noted that Beijing and Shanghai would be the foreign investors' first choice. Following Tokyo and Singapore, Shanghai will be the one of the most popular Asian cities for foreign investors seeking hospitality business opportunities. But as Beijing and Shanghai are lifting their investment bars for the hospitality industries, China's second tier cities, such as Tianjin, Chengdu, Chongqing and Wuhan, are also becoming more appealing to foreign investors. Restaurants and hotels in these cities' business areas and scenic spots will become acquisition targets.
Hotel and restaurant development often means more job opportunities and stable tax sources for the local governments. Therefore it is relatively easy for foreign investors to get government approval to invest in the local hospitality industry. For them these investment prospects in this industry appear to have a bright future, even though Chinese regional governments are imposing stricter policies on foreign investment in the real estate industry.
For more details, please read the full story in Chinese. (http://www.caijing.com.cn/newcn/home/todayspec/2007-10-11/33164.shtml)
(China.org.cn October 12, 2007)
