Respected Ladies and Gentlemen, Dear Friends,
It's my great honor to attend the "2006 International Tourism and Culture Festival & PPRD Tourism Promotion Conference". And as the representative of investors of travel service in Guangdong, I feel honored to brief you on our investment and operation of the Ocean Spring Resort in Zhuhai, Guangdong, and share with you our experience in this regard.
As we know, with our economy developing rapidly and our living standard rising greatly, tourism has become a fashion among people and an integral part of people's daily life. According to the estimates by World Tourism Organization, China's tourism, in the next 10 years, will increase by 8% every year and tourism revenues by 15% per year. China Travel Service Hong Kong Limited (CTS) is the only enterprise focusing on travel service under the direct management of State Asset Supervision and Administration Commission like 52 other key mega enterprises. CTS takes optimizing, strengthening and enlarging its main travel business as the internal demand of its development, emphasizes the integration and development of its main travel business and strengthens the comprehensive complementary service for tourism. By following the path of being a supplier of tourist products, CTS has constantly enhanced the key competitiveness of its main business and achieved sound economic and social benefits. As early as in the year 1985, CTS made investment in the development and construction of Shenzhen OCT, and built the best and first-class cultural theme park groups in China. The first one was opened to the public is Splendid China, followed by China Folk Culture Villages and the Window of the World. All of them have achieved great success and started the craze for theme parks in China. In 1992, CTS' subsidiary – Hong Kong China Travel Service International Investment Limited was successfully listed in Hong Kong. Now our assets have increased by 12 times.
Since the beginning of the new century, travel products and the trend of tourism have undergone great changes. Domestic tourism in the 1980s was featured by pure sightseeing. However, in the 1990s, tourism entered a new stage marked by participation and interaction. In the 21st century, China's tourism, with the development of national economy and the improvement of people's living standard, has now moved toward leisure and holiday travel. Several months ago, Mr. Shao, Director of the National Tourism Administration paid a visit to Ocean Spring Resort and gave our work full recognition. Meanwhile, he expressed his expectations of us to make Ocean Spring Resort the first demonstrative resort in China focusing on travel, leisure and holiday, which inspired us greatly.
Now tourism has moved toward the trend of leisure and holiday, with drive travel, free walker and participatory tourist items enriched and developed continuously. Moreover, instead of relying on entity travel agencies and their face-to-face services, tourism now has gradually moved toward on-line service, which has raised new and higher requirement on the travel service industry. What encourages us is that the Guangdong Provincial CPC Committee and the provincial government attach great importance to the development of tourism and put forward policies and measures aimed at further accelerating and supporting the development of tourism. These policies and measures will actively promote the development of an innovative Guangdong and the internationalization of tourism economy, and have provided a great opportunity for CTS to make investment in the new tourist items in Guangdong.
From 2001 to 2002, we carried out investigation of Zhuhai and decided to build a large spring resort in Pingsha. In April 2002, we started the construction of the project. And in January this year, that is, on January 22, Ocean Spring Resort was officially opened. Although we had merely ten months of soft-open, the number of visitors to the resort this year can be expected to exceed 3 million and the operating revenue will reach 360 million yuan, with an estimated growth rate of 30% next year. The first phase of Ocean Spring Resort, I mean the current site of OSR, covers a land area of 5.1 square kilometers. In the first phase, only about 1 square km of land was developed. There are all together 8 main items including spring center, hotel, park, fisher's wharf, theater, medical center and training camps, etc. OSR is now the most comprehensive and distinctive resort in China aimed at demonstrating world spring culture and creating theme culture. The comprehensive and systematic tourism resources will be the selling point of our resort, which will draw tourists of different ages and levels and stimulate their interests in all respects.
Looking back on the construction and development of OSR over the past five years, we have realized that with the strategic decision made by the CPC central committee and Guangdong Provincial CPC committee and government, with the strong support and full cooperation of Zhuhai government and relative departments and with such a sound investment environment, the construction and development of OSR will surely reach a higher level. As investors, we give top priority to three Rs: Return, Risk and Responsibility. We as investors of course care most about our return, and we will also take the involved risks into account. Most importantly, we should be responsible for our society, our shareholders, our citizens and our government, and shoulder corporate social responsibility in this regard. These three aspects will all be taken into full consideration in decision making. The Guangdong provincial and Zhuhai municipal government have provided us with strong support. Moreover, Zhuhai boasts excellent scarce resources and beautiful environment. As a result, we have more and more confidence in our investment here. And the soft-open over the past ten months has also proved this and we have also made profitable return. As we know, one yuan of tourism revenue can stimulate related economies to generate seven yuan of revenue. Based on such a ratio of 1:7, we will fuel the local economy and bring about a total of several billion yuan in return.
Therefore, looking forward to the future, we have every confidence about the investment and business environment in Guangdong and Zhuhai. We will speed up the second and third phase of the construction of OSR. It is estimated that in 2010 our total investment volume will reach five billion yuan. We will further our construction to build a comprehensive sports park, golf course, spring museum, spring villas and golf villas. Thus, we will further enhance the comprehensive and systematic facilities of OSR and improve its comprehensive competitiveness. We have the resolution and confidence, especially with the care and support of Guangdong and Zhuhai governments as well as different departments as always, to build OSR into the domestic first-class and world advanced leisure resort, so as to jointly bring Guangdong's tourism to a higher level and make due contribution to Guangdong's economic development. Please come to Zhuhai Ocean Spring Resort for your holiday! Thank you all!
(Full text of the remarks by Wang Changle, President of Haiquan Bay Resort at "2006 Pan PRD Tourism Business Promotion Conference" on November 25, 2006, as transcribed)