HONG KONG: In an exciting development for both China's tourism industry and its legendary culture of martial arts, Hong Kong-listed China Travel International Investment has announced it will invest 69 million yuan in a joint venture that will develop sightseeing projects in the Shaolin Temple area.

China Travel said it has agreed to invest in Deng Feng Development, by converting it into a joint venture company. The project will be operated under a newly created company called CTS (Dengfeng) Song Shan Shaolin Culture Tourism Co Limited, which will be 51 percent owned by China Travel.

China Travel said it will use its networks to boost the number of tourists in the area around Shaolin Temple, hailed as one of the founding places of martial arts, by 30 percent in the future from its level at the end of this month.

It will operate tourism facilities in the Shaolin, Zhong Yue, and Song Yang scenic spots, including the development and sales of tourist products, tourist reception, tourism-related trading, services relating to car parks and electronic touring vehicles, as well as the maintenance and cleaning of tourism infrastructure facilities at scenic spots.

"We expect the new company will effectively develop the market and increase the number of tourists," said Xu Munhan, Deputy General Manager of China Travel at the launch ceremony of the founding of Dong Deng.

"The new company will successfully create business operations to take advantage of the region's strong consumption power, to create a classic model for China in terms of tourism management," Xu said.

China Travel said the new project will be complementary to its existing businesses and will attract more tourists.

Bo Baohua, Managing Director of CTS (Dengfeng), said the new company will focus on three areas, including improvements in management, expanding the markets and networks, and planning, which will involve an investment of 80-100 million yuan for the first stage.

"The joint venture company has great ambitions as well as a noble mission, which is to create quality tourism services and products for both domestic and overseas tourists," said Bo.

According to a document China Travel released through the Hong Kong Stock Exchange, Deng Feng Development earned an unaudited profit of about 10 million yuan for the year ending December 2008, down from 27.6 million yuan in 2007.

(HK Edition 12/29/2009 page6)