China’s hotel and restaurant revenues climbed 18% to US$76 billion (RMB581 billion) in the first six months of 2007, the China Business News reported, citing Ministry of Commerce figures. The ministry predicted sales revenues could reach US$84 billion (RMB639 billion) in the second half of the year.  The sector accounted for 14% of China’s total retail sales, which totalled US$461 billion (RMB3.5 trillion) in the first five months of the year according to the National Bureau of Statistics.

Chinese tourists were the major driver behind an 8.6% increase in revenues in the Asia Pacific tourism sector in the first four months of 2007, industry experts told an international tourism trends and research conference in Guilin, a major tourism destination in the southwestern province Guangxi. Of 500 million tourists to the region, 30 million were Chinese, China Tourism News reported. Around 75% of all visitors came from within the Asia Pacific region. A survey conducted by the conference found over 90% of respondents planned to come to China for the 2008 Olympics and also tour a couple of cities. China hosted 22 million foreign visitors in 2006, excluding arrivals from Hong Kong, Macau and Taiwan, up from just 300,000 in 1978, AFP reported, citing figures from the China National Tourism Administration. The country is predicted to overtake France as the world’s top tourism destination by 2014.

Jiangsu Five Star Appliance Co, which was bought by Best Buy for US$180 million (RMB1.4 billion last year), said it would spend US$39.4 million (RMB300 million) developing three new logistics bases to serve stores belonging to it and its parent in eastern China, the Nanjing-based Yangzi Waobao reported. The three logistics hubs will cover a combined 80,000 square meters in Hangzhou, the provincial capital of Zhejiang, Nanjing, the provincial capital of Jiangsu, and Suzhou, which is also in Jiangsu province. Construction is scheduled to begin immediately and the hubs will be operational next year. The Chinese home appliance retailer slightly altered its outlet network and saw a two-digit growth in sales last year after its acquisition by Best Buy. The deal gave the US retailer access to Five Star’s 130 plus outlets across China, mainly in the east coast. Best Buy opened its first Chinese own-brand store in Shanghai last December and plans to open seven more in the city over the next 18 months before turning its attention to other Chinese cities.

A vast mobile tent was established in Shanghai for circus troupe Cirque du Soleil’s mainland debut from June 28 to August 26, the Oriental Morning Post reported. The tent, which covers 4,500 square meters and uses 140 20-meter posts, is sited across from the Shanghai Science and Technology Museum in Pudong and can seat around 2,500 spectators. The troupe, which has 3,000 staff worldwide and rakes in US$400 million per year, spent RMB90 million bringing the show to China. Admission fees range from RMB150 to RMB2,000.

Audi AG plans to introduce its R8 and A5 sports car models to China in 2008 as it strives to attract more private buyers and improve its market share, the China Auto News reported.  The R8 sports car and the A5 sports sedan will debut sequentially in the first quarter of 2008. Audi introduced the TT coupe and the Q7 SUV to China last year. The German luxury automaker is repositioning its brand in China from “business models” to “sporty qualities”. Audi holds more than 50% of China’s top-end market due largely to its A4 and A6 models, which are the car of choice for many Chinese government and state-owned enterprises. Mercedes-Benz has a 12% share of the top-end market and BMW has 18%.