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China's WTO Entry
China to Open Tourism Market

China will gradually lift the limit on the overseas stakes in the domestic traveling agencies to open the tourism market, as it has committed in the World Trade Organization (WTO) talks, according to Sun Gang, vice director of the National Tourism Administration.

Under the open-up schedule, China will allow the overseas sides to take controlling stakes in the joint invested traveling agencies by the end of next year. And by 2006, wholly owned foreign agencies will be allowed to operate in China.

There are eight joint traveling agencies in business across the nation, in which, three are in Beijing, two are in south China's Guangdong province, and the other three are in Yunnan and Gansu provinces and Tianjin.

With more overseas rivals expected to in-flood to the domestic tourist market after China fully opens up the sector, the competition will no doubt fierce up, and the situation will be tougher for local players, Sun said.

Especially, personnel will be the top challenge the domestic travel organizers will encounter, he said. The experienced employees might outflow to the foreign companies, which usually offer high salaries and benefits.

To brave the forthcoming cutthroat competition, Sun said domestic agencies should pace up the development to sharpen their edges.

(eastday.com November 21, 2001)

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