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| Wednesday, October 08, 2008 00:18:26 |
The train to Tibet triggers investment wave
The launch of the Qinghai-Tibet Railway has triggered chain investment in Tibet, Xinhua reported.
Regional Vice-President of Tibet Lobsang Gyaincain said that the opening of Qinghai-Tibet Railways has stimulated a wave of tourists. Arriving by air and long-distanced bus, the number of arrivals totaled 300,000 from July 1 through July 20, which is a 50 percent year-on-year increase. The occupancy rate of Lhasa accommodations is 80 percent.
“With the opening of the railway, the visitor and consumption structures have undergone some changes. The consumption rate of sightseeing, shopping and entertainment is on the rise,” said Gyaincain.
Gyaincain added that the opening of the railway and the improvement on Qinghai-Tibet expressway has brought an influx of individual travelers to central and western areas. These new tourists demand budget accommodation which helps diversify the past domination of luxury hotels. From July 1 to July 6, 680,000 individual travelers arrived in Tibet, which account for 86.2 percent of the total visitors of the period. The average accommodation occupancy rate is 69.3 percent with 58 percent staying in luxury hotels and 85.4 percent in budget hotels.
The opening of the Silk Road to India is also another favourable factor to attract both domestic and foreign investment. Tibet’s Ministry of Commerce said that domestic and foreign companies have consulted or applied for the establishments of airlines, cultural parks, geology parks, sewage waste management and investment firms.
Jin Shixun, chief of Tibet development and reform commission, said that the influx of investors especially in mining puts pressure on the Tibetan environment.
Jin said that the focus of the development of the mining sector would be along the Qinghai-Tibet railway and the rivers in the region. To find large-scaled mining bases for the country is the priority.
Tibet’s underground resources worth more than 10,000 million yuan would help the railway reduce transportation cost by over 20 percent and total operational costs by 30 percent.
However, since the management of mining in Tibet has not yet been established, most mines are developed on the foundation of blind and backward investment and mining system. Miners are not well-equipped. This situation could lead to tremendous damage to the environment.
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