After closed for over two years, tourism companies are gradually gaining access to the capital market.
Tourism companies are gradually gaining access to the capital market, which has been closed to them for more than two years, according to the recently released State Council's "Notice for Further Accelerating the Development of Tourism Industry".Stipulated by the Notice, tourism companies meeting certain conditions will be allowed to issue shares and be listed on the share markets.
An official from the National Administration on Tourism explained that the conditions to be met are the requirements for listing up on the share markets set up by China Securities Regulatory Commission (CSRC). But he would not comment on whether the tourism companies with land property rights and franchise in cultural relics can go public.
Mr. Du Yili, chief of the State Administrative Bureau for Museums and Archaeological Date (SABMAD) expressed that the notice of the State Council made a new breakthrough for tourism companies to develop further.
Currently, the reflection and echo from the industry are comparatively calm, yet the real reaction is hot and persistent. According to those familiar with the case, many tourism companies are applying for listing, some of which have already submitted relevant documents to CSRC. Among these companies are the Three Gorges Tourism Corporation and Jinggangshan Tourism Development Co. Ltd., both applied for listing several years ago.
Shaanxi Tourism Corporation and Gansu Dunhuang Tourism Co. Ltd., which tried to enter into the capital markets two years ago, confirmed in interviews, that they are carrying out relevant reconstructions in order to do so as early as possible.
Professor Li Geng, chief researcher of China's biggest tourism company-Beijing Tourism Group and General Manager of Beijing Tourism Corporation comments that the main ideas and principals of the Central Governmnt have already demonstrated clearly in the Notice. The obstacles faced by tourism companies on their way to capital markets are only technical ones.
Mr. Li was invited to a seminar hosted by the State Council two years ago, on which they tried to solve the controversial issue, together with representatives from the construction industry, SABMAD and tourism industry, of tourism companies with operations in cultural relics and land site to go public.
These companies include the West Lake in Hangzhou, the Stone Forest in Yunnan Lijiang, the Terra-cotta Warriors and Horses in Shaanxi, and the Dunhuang Grotto.
Mr. Li is a supporter of the market operation for cultural relic and land site, especially for their listing. He said that in order to become a self-supporting industry, tourism needs development and regulation instead of inhibition. The public listing of tourism resources, including cultural relic and land site resources, will realize public value of those public assets in a socialist economy. Relevant tourism companies can raise funds by means of listing on the stock markets and building up a modern management mechanism of high efficiency and effectiveness. Only in this way can the national tourist resources be better protected and preserved while tourism companies be better managed and developed under the public supervision.
(People's Daily 06/04/2001)
