The authorization of tourist reception sites is a product of planned economy, which has been implemented in the country since 1987, when most restaurants, hotels and shops had simple facilities with bad sanitation and poor services. Under such circumstance, the government chose some not-too-bad enterprises as authorized reception sites for organized tourists so as to guarantee the quality of reception.

At present, there are more than 1,000 authorized tourist reception enterprises in Beijing, including 650 star-rated hotels, 150 shopping centers, over 300 restaurants, 21 theaters and 23 video-making companies.

The remarkably improvement of common catering companies makes it possible and reasonable to abolish the authorization system. China now has a flourishing tourism industry and there is no base for providing rich tourist resources to government-pointed enterprises only. Besides, the old system also betrays the WTO principle of free competition. "Now it's time for the market to play the leading role," said an official in tourism.

The abolishment is also a step in the implementation of the State Administrative Permission Law, which is going into effect in July 1. The law makes strict limitation to government's administrative licensing power, a signal indicating China's determination to advance along the road of market economy.

At present, there are 5,000-plus hotels, including 660 star-rated, available for tourists to choose from, while catering enterprises and shops are numerous in the capital.

| China Travel Update |