There are already 340 hotels in the city, of which 20 are five-star rated and 30 are four-star rated. However, the ever-increasing number of tourists requires even more hotel rooms.

Average occupancy rate in Shanghai's star-rated hotels the first three months of this year was over 70 percent.

As more international events like the Formula One Rally occur later this year, more luxury hotels will be needed.

Shanghai has been chosen to host the World Expo in 2010, when 70 million tourists are expected to visit this oriental metropolis.

| China Travel Update |