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Catering industry grows rapidly in 1st half

(Xinhua)
Updated: 2007-07-04 14:32

China's catering and hotel sector performed well thanks largely to strong demand in the first half of this year, sources with theMinistry of Commercesaid on Wednesday.

Between January and June, the sector'sretailsales were estimated at 581.2 billion yuan (US$77.5 billion), a rise of 88.2 billion yuan, or 17.9 percent, over the same period last year. The growth rate was 2.6 percentage points higher.

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The sector accounted for 13.8 percent of China's total retail sales in the six-month period, the sources added.

Star-level hotels and major restaurants each with annual sales of at least 2 million yuan and employing more than 40 people recorded estimated sales of 170.8 billion yuan nationwide, a growth of 18.5 percent over the first half of last year. The growth rate was 4.2 percentage points higher.

The ministry predicted the hotel and catering sector would maintain its growth in the second half of the year as demand would remain strong. The sector's retail sales for the whole year would likely amount to 1.22 trillion yuan, up more than 18 percent over last year.