The Water Township Of Nanxun

Nanxun District is a district in the prefecture-level city of Huzhou, Zhejiang province, China. Nanxun Town, an old town, is located in the district. It is one of the most well-preserved old towns in this region and is known for its cultural heritage.

Source: By heroodle (China Daily/China Forum/Wikipedia)

Shanghai walking tour: The former French Concession

Foreigners in Shanghai speak of the former French Concession (前法租界) like it’s sacred ground, akin to the windy streets of Montmartre.

Ask locals and they’ll tell you that the neighborhood -- roughly bounded by Ruijin Lu to the East, Yan’an Lu to the North, Zhaojiabang Lu to the South and Huashan Lu to the West -- is quiet, tree-lined and teeming with boutiques, bars and restaurants for Shanghai’s hedonists.

Stop 1

Little Red House

Directions: The walking tour kicks off from the edge of Xujiahui Park (徐家汇公园), at the southern tip of the neighborhood.

The site: Built in 1921, this is the former headquarters of British recording label EMI, which held court until 1949, after which a government-owned music group took over.

Chen says this is where a number of then-famous Chinese singers recorded, such as Zhou Xuan (周旋) and Li Xianglan (李香兰).

The building, known colloquially as “Little Red House,” is now home to Restaurant Martin, run by three-star Spanish Michelin chef Martin Berasategui.

Restaurant Martin, 811 Hengshan Lu, near Yuqing Lu 衡山路811号, 近余庆路, +86 21 6431 6639, 11:30 a.m.-10:30 p.m., www.restaurantmartin.com.cn

Stop 2

The Normandie (武康大楼)

Directions: Walk east along Hengshan Lu, turn north on Tianping Lu and walk up toward Huaihai Zhong Lu.

The site: Designed in 1924 by Hungarian architect László Hudec, who designed several buildings around Shanghai, The Normandie is a beautifully restored, eight-story apartment building with a rich architectural history.

Chen remembers visiting his artist friends here and says, “Looking at the building is like going back to the 1930s and seeing how the Shanghainese lived then.”

1858 Huaihai Zhong Lu, near Wukang Lu 淮海中路1858号, 近武康路

Stop 3

Former residence of Zhang Leping (张乐平故居)

Directions: Walk north on Wukang Lu and make a right onto Wuyuan Lu.

The site: Halfway down the block is the former home of Zhang Leping (张乐平), the lauded animator and creator of the Sanmao (“Three Hairs”) cartoon series and title character of the same name.

Zhang started drawing Sanmao in 1935 as a way to portray the Second Sino-Japanese War’s youngest victims, and Sanmao’s three hairs represent malnutrition.

The blocks surrounding Wuyuan Lu have experienced enormous growth and gentrification, especially Anfu Lu, one block north.

“I have mixed emotions about the development,” Chen says.

“I like that it’s returning Shanghai to a world city, but I hate that some of my good memories are being destroyed.

“When I was growing up, Yong Le Gong cinema was where Food Central and the neighboring stores are now. The entrance of the Dragonfly Retreat spa was once the door to the cinema. ”

House 3, 288 Wuyuan Lu, near Yongfu Lu 五原路288号3号, 近永福路

Stop 4

Children’s Palace (上海市少年宫)

Directions: Walk east on Wuyuan Lu, make a left on Wulumuqi Lu and walk north until you hit Yan’an elevated roadway.

On the north side of Yan’an, halfway down the block from Wulumuqi you’ll find the entrance to the Children’s Palace.

The site: “This is full of memories for so many Shanghainese children,” says Chen. “This is where we went to watch films, play games and learn singing, dancing and painting.

“A few years ago, I went to a fashion show there and it was such a different feeling.”

The core structure of the Children’s Palace is the former residence of Jewish entrepreneur Sir Elly Kadoorie, founder of Peninsula Hotel’s mother company, The Hongkong and Shanghai Hotels.

The 14,400-square-meter building was built purely with marble and is the only one of its kind in Shanghai.

64 Yan’an Xi Lu, near Wulumuqi Bei Lu 延安西路64号, 近乌鲁木齐北路

Stop 5

Shanghai Theatre Academy (上海戏剧学院)

Directions: One block south of the Children’s Palace is the Shanghai Theatre Academy complex, a mishmash of new construction and restored buildings dating to the 1940s.

The site: “This is a famous film school and the buildings are old and beautiful,” Chen says. He suggests walking around the school grounds and “just observing the students’ lives.”

“The big, old buildings, the grass and the trees make it a very peaceful place,” Chen adds.

630 Huashan Lu, near Wulumuqi Bei Lu 华山路630号, 近乌鲁木齐北路

Stop 6

Jinjiang Hotel (锦江饭店)

Directions: Moving south from Shanghai Theatre Academy, walk down Wulumuqi Lu toward Changle Lu and then make a right, moving east toward Maoming Lu.

Just south of Changle, on the east side of Maoming, is the Jinjiang Hotel compound.

The site: Not to be confused with the nearby New Jinjiang Hotel, which was built in 1988, Jinjiang Hotel comprises the former Cathay Mansion, a 13-story complex built by Sir Victor Sassoon.

“The original Jinjiang Hotel is in an old building from the 1930s, and the hotel has very traditional restaurants and is a favorite of the old Shanghainese,” says Chen.

“In the 1980s, if you ate dinner at the Jinjiang Hotel, you felt very proud. There are a lot of new hotels now, but in the 1980s, it was just the Jinjiang. I also used to go to the hotel to watch films.”

59 Maoming Nan Lu, near Changle Lu 茂名南路59号, 近长乐路

Stop 7

Cathay Theatre (国泰电影院)

Directions: Half a block from the Jinjiang Hotel is the Cathay Theater, the last stop on Chen’s former French Concession walking tour.

The site: The theater opened in 1932 and was owned by Victor Sassoon, who also owned the Peace Hotel.

“It’s a beautiful theater, very art deco,” Chen says. “It's a favorite of famous Shanghainese author Eileen Chang (张爱玲), who’s written about it in her works.”

Chang is best known for her novel "Lust, Caution," which was turned into an award-winning and highly erotic

film by Ang Lee (李安) in 2007. Like The Normandie and Shanghai Theater Academy’s older buildings, the Cathay Theatre has been restored.

“I do think a lot of the places in the former French Concession have been protected very well, especially when compared to Beijing, where the hutongs have been absolutely destroyed," says Chen.

“Because foreigners like this place, the government protects it, and I think that’s OK.”

870 Huaihai Zhong Lu, near Maoming Nan Lu 淮海中路870号, 近茂名南路

Source: CNN Go By Sophie Friedman

China Southern Annual Profit Drops 12% on Higher Jet-Fuel Prices

Source: Bloomberg News By Jasmine Wang

China Southern Airlines Co. (1055), Asia’s biggest carrier by passenger number, said profit declined 12 percent last year because of higher fuel prices and slower domestic travel growth.

Net income fell to 5.11 billion yuan ($810 million) in 2011 from 5.79 billion yuan a year earlier, the company said in a Hong Kong stock exchange filing late yesterday. That compares with the 5.8 billion yuan average of 11 analyst estimates compiled by Bloomberg. Total operating revenue rose 18 percent to 90.4 billion yuan.

China Southern, the nation’s biggest domestic carrier, Air China Ltd. (753) and China Eastern Airlines Corp. all posted lower profits last year as they contended with a 40 percent jump in fuel prices. Guangzhou-based China Southern also filled a smaller proportion of seats on international routes as it added new services to pare its reliance on cooling domestic markets.

“The growth rate is expected to slow down,” the airline said. Continued high oil prices will also “exert greater pressure on the profits of the aviation industry in 2012.”

The airline’s domestic passenger numbers rose 4.6 percent to 72.9 million last year, trailing the 14 percent growth rate a year earlier.

China Southern’s spending on jet fuel jumped 39 percent to 32.7 billion yuan because of higher prices and increased flights. Jet Kerosene prices averaged $125.67 a barrel in Singapore trading in 2011, 40 percent higher than the year before, according to data compiled by Bloomberg.

The company proposed to pay a final dividend of 0.2 yuan per share, compared with nothing a year earlier.

The airline, China’s only operator of Airbus SAS A380s, flew a total of 80.7 million passengers in 2011, 5.5 percent more than a year earlier. Yield, a measure of average fares, increased 8.1 percent.

International Expansion
On international routes, the carrier filled 73.9 percent of seat, a 0.9 percentage point decline. Yields fell 3.4 percent. Passenger numbers jumped 16 percent to 6 million, helped by the start of flights to Auckland, Perth and Vancouver.

The carrier, which has three A380 superjumbos, has only used the planes on flights within mainland China and Hong Kong as it awaits permissions to begin international services.

The airline rose 1.7 percent to HK$3.59 in Hong Kong yesterday, before the earnings release. It has dropped 8.7 percent this year, compared with a 12 percent increase in the benchmark Hang Seng Index.

Air China earlier this week reported a 41 percent decline in net income for 2011. China Eastern’s profit last year fell 7.7 percent.

Datong- The Height Of Art

Source: China Daily

Located on the northeastern edge of the Loess Plateau, the site of some of the earliest settlements of Chinese civilization, Datong is a city steeped in history and culture. Wedged between the outer and inner sections of the Great Wall, the city has a history going back more than 2,400 years. It grew in importance during the Spring and Autumn Period (770-476 BC) on the back of its geographical advantages.

The city served as the capital for six years during the Northern Wei Dynasty (AD 386-534) and became the political, economic and cultural center of the north. Throughout history, Datong has been home to many different ethnic groups from all parts of China and beyond - resulting in multicultural mix that can be seen in some of the more than 60 well-preserved historical sites.

Described as the "Lock of the North", Datong continues to play a crucial part in connecting the country's eastern coastal areas and its western inland territories. It is also the "throat" between the Inner Mongolia autonomous region and Shanxi, and modern transport strengthens that regional significance.

Datong boasts an enormous variety of natural resources that has helped enrich the city since ancient times. Apart from coal, there are many other resources, such as gold and silver.

Here are three attractions tourists can look forward to in Datong.

1. Yungang Grottoes

The Yungang Grottoes are 16 kilometers southwest of Datong. Sitting at the base of the Wuzhou Mountains, Yungang originally meant a high point in the area and later became the name of the grottoes. The site is one of the three most famous grottoes in China, with the other two being Longmen in Henan province and Mogao in Gansu province.

The first grottoes of the area were built in the Northern Wei Dynasty, when Datong served as the capital, then called Pingcheng. The emperor ordered Tanyao, a high-ranking Buddhist monk, to lead the construction of the grottoes. Most of the grottoes were completed before the capital was moved to Luoyang city. More than 40,000 laborers helped build the grottoes and the project took nearly 50 years to complete. Buddhists from Lion Kingdom, now known as Sri Lanka, joined in the construction and the grottoes still carry marks of cultural amalgamation. The Yungang Grottoes are said to date back 1,500 years.

The grottoes integrate traditional Chinese elements and aspects of Indian Buddhist art. They form a significant part of the sculptural achievements of humankind and showcase some of the highest forms of Chinese Buddhist art.

There are 53 caves in Yungang and more than 51,000 stone sculptures, making the site one of the largest collections of grottoes in China. The mountains divide the grottoes into three parts, the east, the west and the middle.

The third cave is the largest and its broken facade is 25 meters tall. It is said to have been the study of the monk Tanyao as he translated scriptures. There are two rooms in the cave, with the one at the back home to three exquisitely designed Buddha sculptures. The primary one standing in the middle is 10 meters tall, and the other two beside it reach up to 6.2 meters. The style and carving methods of these three sculptures are said to date back to the Tang Dynasty (AD 618-907).

The biggest Buddha sculpture in the grottoes lies in the fifth cave, on the northern wall of its back room, at 17 meters tall. There are also five four-story buildings in front that were rebuilt in 1651, during the time of the Shunzhi emperor in the Qing Dynasty (1644-1911).

2. Hengshan Mountain

Hengshan Mountain is one of the Five Great Mountains of China. The mountain is the dividing line of the Haihe River's two tributaries, the Sanggan and Hutuo rivers. It stretches about 150 km from east to west and spans both Shanxi and Hebei provinces. The highest peak of the mountain is in the south of Hunyuan county and is 2,016 meters above sea level.

Legend has it that 4,000 years ago, the ancient Emperor Shun was hunting here and saw the splendid mountain views. He later called it the Northern Great Mountain. In the Qin Dynasty (221-206 BC), Emperor Qinshihuang selected 12 sacred mountains and Hengshan ranked second on his list. Throughout history, the mountain has been a popular place for emperors. Poets such as Li Bai and geographers like Xu Xiake also left well-known impressions of the mountain.

There are also famous man-made attractions such as the Morning Palace, Huixian Mansion, Jiutian Palace and Xuangong Temple.

In China, great mountains are often linked to religion. Hengshan is deeply associated with Taoism, and temples have been an important part of it, with Xuankong Temple being one of the most famous of these. According to one legend, Zhang Guolao, one of the Eight Cave Celestials of Taoism, cultivated himself here.

3. Pagoda of Fogong Temple

This wooden pagoda is part of the Fogong Temple in Yingxian county, 70 km from Datong city. Also called the Sakyamuni Pagoda, it was built in 1056. The building has survived the elements and natural disasters, including earthquakes, which many say is solid proof of its building quality and practical design.

According to one story, Yingxian county once occupied an important position within the inner part of the Great Wall and became a prized location for competing military powers. To detect rivals and promote Buddhism at the same time, a huge wooden pagoda was built in the area. Documents show that the structure took more than 100 years to build. With no suitable wood in the area for building, huge efforts were made to import a vast amount of wood for its construction and the total cost remains a mystery.

Many consider the pagoda to be the oldest and largest of all extant wooden structures.

The pagoda is 67 meters tall and the diameter of its base is about 30 meters. The base consists of two parts, the one above square and the one below octagonal, just like the main body. From the outside, the pagoda seems to have five floors but there are another four hidden floors inside, making the total number nine.

Grand sculptures and vivid portraits displaying the spirit of Buddhism form some of the major attractions inside the building. From emperors to local residents, devout followers of Buddhism have left words of wisdom inside the pagoda as they helped repair and improve the structure.

20 Top Beijing Hotels

That amazing opening ceremony or Usain Bolt's record-breaking 100-meter run might be what much of the public still remembers, but for travelers there's a more important legacy of Beijing’s Olympic Games party: hotel beds.

Thousands of rooms and beds, from big-chain luxury operations to chic courtyard hostels, are left unfilled in the city.

Lots of rooms means lots of bargains on Beijing hotel rooms.

Whether you want to bathe like an emperor in the central business district (CBD) or drop a rucksack an alleyway near the Forbidden City, Beijing has got you covered in covers.

Luxury

The Opposite House (瑜舍)

Opened in 2008, this six-story, glass-walled, 99-room boutique hotel is the city’s hippest address. The work of Japanese architect Kengo Kuma, it shows off Beijing's Olympic commitment to design and style.

White rooms have a breezy, yoga-studio aesthetic. Even the bath is wooden.

Downstairs you’ll find a stainless steel pool -- like something from Doctor Evil’s lair, though with no piranhas -- and Bei, one of Beijing’s finest restaurants. The hotel even has its own nightclub, Punk.

In the middle of a large shopping and dining complex, The Opposite House is in a good setting for night owls.

The Village Building 1, 11 Sanlitun Lu, near Dongzhimenwai Dajie 三里屯路11号,三里屯Village1号楼, 近东直门外大街, +86 10 6417 6688, room rates: from RMB 2,500, www.theoppositehouse.com

China World Summit Wing (国贸大酒店)

Rising like a steel mast over Beijing's CBD, the 81-story, 330-meter China World Tower 3 (the city’s tallest building) hosts Shangri-La’s Summit Wing hotel on its uppermost floors (64th-80th floor).

Bill Gates books a suite here when he’s in town, but even the standard rooms measure in at an impressive 55 square meters, with Narnia-sized wardrobes and a tub big enough for one-on-one water polo.

This slick business hotel has decorative Oriental flourishes, giant feather pillows and jaw-dropping vistas, smog-permitting.

Since opening in 2010, Atmosphere Bar on the 80th floor has garnered a following for its views of the bright lights of CBD.

The 25-meter infinity pool on the 78th floor -- yup, it’s like swimming in the sky -- might well be the highlight of your stay.

1 Jianguomenwai Dajie, near Dongsanhuan Zhonglu 建国门外大街1号, 近东三环中路, +86 10 6505 2299, room rates: from RMB 1,888, www.shangri-la.com/en

Raffles Beijing (北京饭店莱佛士)

Beijing’s grande dame hotel, the 171-room Raffles Beijing (formerly Hotel de Pekin) has seen it all in its 80-plus years of service.

The building was occupied by the Japanese military between 1937 and 1945. A decade later, the People’s Liberation Army held banquets here before the Great Hall of the People went up at Tiananmen Square down the street.

A bit faded, the hotel still exudes class from every glittering chandelier and four-poster bed.

Rooms in south-facing Block "B" (the original section of the hotel) overlooking Chang'an Jie are prime real estate.

Even if you don’t stay here, afternoon tea in the Writer’s Bar with its antique wooden dance floor (upon which a certain Mao Zedong was known to tango on occasion) is worth doing.

33 Dong Chang'an Jie, near Wangfujing Dajie 东长安街33号, 近王府井大街, +86 10 6526 3388, room rates: from RMB 1,588, www.raffles.com/beijing

The Aman at Summer Palace (颐和安缦)

Within Aman’s 1.2-square-kilometers of polished clay floor tiles lies the last word in imperial luxury -- a period Qing Dynasty resort of crisscrossing courtyards, halls and suites, unfolding symmetrically like a miniature Forbidden City.

Attached to the Summer Palace (it even has its own secret entrance), Aman is Beijing’s priciest hotel.

Expect all the fawning and comforts “Aman junkies” take for granted: huge bathrooms, period furnishings, a packed program of tours and cultural events and seriously fine dining at Naoki Restaurant, which serves Japanese kaiseki cuisine.

Some distance from the city center, this one is designed for escape, not exploration.

1 Gongmenqian Lu, Summer Palace, near Tongqing Jie 颐和园宫门前街1号, 近同庆街, +86 10 5987 9999, room rates: from RMB 4,000, www.amanresorts.com

Park Hyatt Beijing (北京柏悦酒店)

Check-in takes place on the 63rd floor at this haven in the sky, and from there it's breezy comfort all the way.

Generous suites come with a butler, the biggest bathtub in town and soothing views -- just the place to unwind after a long evening clinking baijiu glasses with your Chinese business partners.

China Grill offers premium dry-aged steaks and seafood. For cocktails and a hopping house band, rooftop bar XIU regularly packs out, especially on its near-legendary "ladies night" every Thursday.

If buying bling is your bag, the Park Hyatt sits atop some of the best luxury shopping in the city, connecting directly with China World Mall beneath the street.

2 Jianguomenwai Dajie, near Dongsanhuan Zhonglu 建国门外大街2号, 近东三环中路, +86 10 8567 1234, room rates: from RMB 2,100, beijing.park.hyatt.com/hyatt/hotels

The Peninsula Beijing (王府半岛酒店)

Everyone from the doorman to the butler who comes to replenish the mini-bar seems to make it their mission to make you feel fabulous at this centrally located palace.

Standard rooms are a little smaller than at some of Beijing’s newer five-star hotels, but the 14th floor has a row of funky duplexes with tall windows.

There’s always the 660-square-meter Peninsula Suite with private elevator, banquet room and tub with a view reaching as far (in nice weather) as the Forbidden City and Jinshan.

An annex built in 2008 holds one of Beijing’s most luxurious spas, The Peninsula Spa, with an extensive menu of treatments for both sexes.

8 Jinyu Hutong, Wangfujing, near Dongdan Beidajie 王府井金鱼胡同8号, 近东单北大街, +86 10 8516 2888, room rates: from RMB 1,600, www.peninsula.com

More on CNNGo: Beijing's best shopping areas

Mid-range

Grace Beijing (格瑞斯北京)

Back in the 1990s, artists like Ai Weiwei (艾未未) set up shop in the empty factory buildings that would eventually become the 798 Art District. With the opening of

Grace Hotel (formerly Yi House Art Hotel), the area’s gentrification is complete.
Though it’s outside of town, the hotel is surrounded by world-class contemporary art galleries.

There are only 30 guest rooms, but from boxy singles to spacious suites they claim lofty ceilings, original Bauhaus windows (that open), luxury linen and lots of arty prints.

You can fill up on terrific European fare at Yi House Bistro, which has a great two-course lunch deal for RMB 108 (except for Sunday).

2 Jiuxianqiao Road, 798 Yishu Qu, 706 Hou Jie 1 Hao 酒仙桥路2号院, 798艺术区706后街1号, +86 10 6436 1818, room rates: from RMB 616, www.gracebeijing.com

The Orchid

Billed as a "hostel for grown-ups," The Orchid is a laid-back boutique in one of Beijing’s most vibrant hutong neighborhoods.

The lobby bar hosts regular wine tastings (free for guests), and serves potent locally brewed beer -- pretty soon everyone is well-acquainted, especially with only 10 guest rooms.

The most affordable rooms occupy wooden-beamed Qing-era buildings that surround an idyllic courtyard.

Premium rooms have private outdoor space and come with thoughtful extras like a mobile phone pre-loaded with useful numbers.

All rooms have an Apple TV set, goose-down beds and jars of high-grade tea.

From the trio of roof terraces you can catch sight of the Drum and Bell Towers looming over tiled rooftops.

65 Baochao Hutong, Gulou Dongdajie, near Nan Luogu Xiang 鼓楼东大街宝钞胡同65号, 近南锣鼓巷, +86 10 8404 4818, room rates: from RMB 680, www.theorchidbeijing.com

Hotel G

With its over-designed "retro-chic" decor and MacBook-wielding clientele, Hotel G is a slick operation providing good value: giant flat-screen TVs, iPod docks, Nintendo Wiis, complimentary mini-bar drinks and other treats for less than the price of chain hotels.

Hotel G isn't in the most attractive part of town, but it's in a good position for business meetings -- the nearby Lido area hosts many multinational companies -- and Beijing’s biggest nightclubs are a few hundred yards away.

Scarlett is the best kind of hotel bar-restaurant. Affordable brasserie fare is complemented by an excellent wine list (with many by the glass), and very possibly the most tempting cheese board in China.

A7 Gongti Xilu, near Dongyingfang Hutong 工体西路甲7号, 近东营房胡同, +86 10 6552 3600, room rates: from RMB 1,088, www.hotel-g.com

Courtyard 7 (秦唐府客栈7号院)

For a semi-authentic Chinese experience without compromising on comfort, Courtyard 7 ticks most boxes.

Gray brick buildings with vermillion beams and steep, tiled roofs wrap around meticulously tended gardens, quadrangle-style.

Spacious rooms are dominated by traditional rosewood-framed beds girdled with silk drapes -- firm for the uninitiated, but comfort is assured elsewhere by cozy under-floor heating, rainforest-style showers and a hearty buffet breakfast.

Best of all is the location, a quiet side alley off Nanluogu Xiang straddling the old and new parts of town. Head east for lattes, cocktails and Mao kitsch, west for traditional snack vendors and card-playing locals.

7 Qianguloyuan Hutong, Nanluogu Xiang 南锣鼓巷前鼓楼苑胡同7号, +86 10 6406 0777, room rates: from RMB 650, www.courtyard7.com

Face Hotel

Set in a former primary school, this low-rise boutique is a newer addition to Face Bar, an upscale drinking hole south of the Worker’s Stadium.

Guest rooms and public areas are strewn with eye-catching Indian, Balinese and Thai artworks from the owner’s personal collection.

Rooms come with giant TVs, attractive Chinese furniture, big bathrooms and lots of hanging space. Previously employed by Banyan Tree, the manager, Lu Hu (陆虎), ensures service remains a priority.

The hotel's Thai restaurant, Lam Na Thai, with a manager and chefs imported from Thailand, is popular.

26 Dongcaoyuan, near Gongti Nanlu 工体南路东草园26号, 近工体南路, +86 10 6551 6738, room rates: from RMB 700, www.facebars.com

Park Plaza Beijing Wangfujing (北京丽亭酒店)

Close to the Forbidden City and tourist shopping at Wangfujing, Park Plaza is a smart choice for first-time visitors nervous about culture shock.

Rooms are neat and tidy, with decent-sized bathrooms, big comfy beds, free Internet access and a smattering of foreign channels on the box. The downsides are no pool, and the breakfast buffet costs extra.

A team of efficient concierges is on hand day and night to take care of all of your Great Wall and Peking duck enthusiasms.

Book at least a month ahead in high reason if you want to snag a room at this popular and affordable mid-range hotel.

97 Jinbao Jie, near Dongsi Nandajie 金宝街97号, 近东四南大街, +86 10 8522 1999, room rates: from RMB 595, www.parkplaza.com

The Brickyard (瓦厂)

On the outskirts of Mutianyu village, this eco-conscious boutique retreat rests in the shadow of Beijing’s second most visited stretch of Great Wall.

A former glazed tile factory, it’s gone through a full makeover. The old firing kilns now house the reception area, and shards of colorful tiles are set into paths that wind through neatly clipped gardens.

Floor-to-ceiling windows with Great Wall views are installed in all guest rooms at ground level, but curtains are absent, so expect to rise with the sun (or use the eye-shades provided).

Breakfast (included) features local bacon, freshly baked pastries and jams made with fruit from the surrounding orchards.

A newly opened spa with pool, an outdoor Jacuzzi, sauna and treatment room has all wellness needs catered for.

Beigou Village, near Mutianyu Great Wall 北沟村, 近慕田峪长城, +86 10 6162 6506, room rates: from RMB 1,200, bunker rates: from RMB 80, www.brickyardatmutianyu.com

Hotel Kapok (木棉花酒店)

Bright, white and contemporary, this Chinese approximation of a design hotel falls just short of greatness.

Open plan rooms have nifty enclosed balcony gardens, glass-walled bathrooms, big beds and techy gadgets.

Service is orderly and accommodating, despite spotty spoken English.

The lobby restaurant hands out iPad-style touch-screen menus, but the burgers, pizza and Hunan-style Chinese dishes are rather more humdrum.

Public areas sport space-age white booths kitted out with books and magazines.

Best of all is the location right beside the east gate of the Forbidden City, and minutes from the Wangfujing night market.

16 Donghuamen DaJie, near Beiheyan Dajie 东华门大街16号, 近北河沿大街, +86 10 6525 9988, room rates: from RMB 788, www.kapokhotelbeijing.com

Budget

Holiday Inn Express Beijing Dongzhimen (北京东直门智选假日酒店)

This crisp, new budget hotel is surrounded by great Western and Chinese restaurants, and just across the street from April Gourmet, a U.S.-style grocery store open late for that emergency jar of peanut butter.

Good value rooms have funky lime-green armchairs, walk-in showers with lots of rolled towels, tea and coffee facilities, comfy beds and flat-screen TVs.

Young staff clad in orange sweaters are happy to help, but you might need to break out the Mandarin phrasebook.

Beijing’s best nightlife is within walking distance.

1 Chunxiu Lu, near Dongzhimenwai Dajie 春秀路1号, 近东直门外大街, +86 10 6416 9999, room rates: from RMB 485, www.hiexpress.com

Peking Yard (北平小院国际青年旅舍)

This upmarket hostel caters to the needs of today’s “flashpacker” tribe.

Housed in a handsome old house halfway up an interesting hutong, it opens into a chilled, wood-beamed lobby bar selling Belgian beers, pizza and burgers, with comfy couches and leafy plants. There's a quiet garden in the back, a few dorm beds are available, and there’s a cute sun terrace with loungers.

As a place to meet other travelers and compare Great Wall adventures it can’t be beat, but the price is getting into mid-range hotel territory.

28 Wangzhima Hutong, near Dongsi Beidajie 汪芝麻胡同甲28号, 近东四北大街, +86 10 8404 8787, room rates: from RMB 420, www.pekingyard.hostel.com

Double Happiness Courtyard (阅微庄四合院)

Family-friendly service and a great alleyway location make up for the Chinese-style beds and small bathrooms at this charming, tumbledown courtyard hotel.

No two rooms are the same it would seem; try to get one of three with a private balcony.

Rooms come with kettle and coffee machine, simple breakfast, Chinese-style wooden furniture, flat-screen TV and even a desktop PC for free web browsing.

A well-equipped bar is just inside the entrance, and the hotel staff are unfailingly friendly and adept at booking tours and onward travel. A lack of under-floor heating definitely halves guests' happiness, so this is probably one to skip in winter.

37 Dongsi Sitiao, near Dongsi Beidajie 东四四条37号, 近东四北大街, +86 10 6400 7762, room rates: from RMB 580, www.doublehappinesscourtyard.com

Sitting on the City Walls (城墙旅社)

So called for its perch just inside the long-gone Imperial city walls, this simple courtyard hotel is high on period atmosphere.

A eunuch’s snip away from Jingshan Park and the Forbidden City, it’s marvelously located, and boss Rick Dou (窦宏图) is a well of local knowledge. The Beijinger will tell you all about the history of the area.

Most rooms open onto the central covered courtyard -- the usual mélange of tables and chairs, booking desk, beer fridge and (rather less common) a life-size replica of a Terracotta warrior.

Basic rooms have soft beds and big shower rooms, and the kitchen turns out serviceable kung pao chicken and cheap coffee.

Free bike hire lets you explore the surrounding maze of old alleys at your leisure.

57 Nianzi Hutong, Jingshan Houjie, near Dianmen Neidajie 景山后街碾子胡同57号, 近地安门内大街, +86 10 6402 7805, room rates: from RMB 380, www.beijingcitywalls.com

Templeside Deluxe Hutong House (广济邻国际青年旅舍)

In the shadow of a little-known Tibetan temple, if this covered courtyard feels a long way from the cappuccinos and shopping malls of contemporary Beijing, it's because it is.

Rooms are basic, with firm beds, thin towels and tiny shower rooms, fridge, TV and free Wi-Fi. Choose a south-facing room for temple views. There are three threadbare "family rooms" with bathtubs.

A small second-floor terrace has great views across the rooftops to the temple stupa.

Beijing-born owner Bobby Zhang (张昊) and his wife make every effort to make guests feel at home, with weekly group events like dumpling-making and family-style meals.

2 Baita Xiang, Zhaodengyu Lu, near Anping Xiang 赵登禹路白塔巷2号, 近安平巷, +86 10 6617 2571, room rates from: RMB 400, www.templeside.com

Peking International Youth Hostel (北平国际青年旅舍)

Another hip hangout for 21st-century nomads, this hostel in a compact courtyard beside the east gate of the Forbidden City offers small rooms and lovely public areas.

The open-air courtyard is a rarity in Beijing. Its long bench tables suit summer socializing and sunny breakfasts.

The building itself is particularly atmospheric, with peeling beams and period fixtures.

The downside is that drinks are Starbucks prices, and service is a little frostier than at other hostels.

No. 5, Beichizi Ertiao, Beichizi Dajie, near Donghuamen Dajie 北池子大街北池子二条5号, 近东华门大街, +86 10 6526 8855, room rates from: RMB 420, www.peking.hostel.com

Source: CNN Go By Tom O’Malley

Air China Passenger Growth May Slow to 4.4% After Profit Slump

Source: Bloomberg News By Jasmine Wang

Air China Ltd. (753), the world’s biggest airline by market value, predicted that passenger growth may slow to 4.4 percent this year after reporting a worse-than- expected decline in 2011 profit.

The carrier, including units, may fly 72.8 million travelers this year, compared with 69.7 million last year, it said in a Shanghai stock exchange filling late yesterday. Net income declined 41 percent last year to 7.08 billion yuan ($1.1 billion) under international accounting standards.

China’s biggest international carrier expects passenger growth to cool from last year’s 16 percent because of economic concerns in China, the U.S. and Europe. The company also faces rising fuel costs with prices having averaged about 10 percent higher in Singapore trading in 2012 than a year earlier.

“With capacity growth and weaker demand growth, the airline is likely to face difficulties in growing passenger yields,” said Richard Wei, an analyst with UBS AG. “The rising jet-fuel price is also expected to hurt profit-margins further.”

Profit may decline 20 percent this year, he said, before the earnings announcement.

Net income last year fell after the carrier’s fuel expenses rose 44 percent to 34.7 billion yuan because of higher prices and increased flying.

Cathay Pacific Stake
The contribution from a stake in Cathay Pacific (293) Airways Ltd., Hong Kong’s biggest carrier, also slumped 68 percent to 959 million yuan after year-earlier one-time gains. Air China holds about 30 percent of Cathay Pacific. The Hong Kong-based carrier also owns a stake in Air China.

Air China’s sales rose 19 percent last year to 98.4 billion yuan. Earnings per share fell to 0.58 yuan from 1.03 yuan. The carrier was expected to make a 2011 profit of 8.9 billion yuan, based on the average of eight analyst estimates compiled by Bloomberg.

The airline’s groupwide yields, a measure of average fares, increased 6.3 percent to 0.68 yuan per revenue passenger kilometer, it said in a press release.

The carrier proposed a final dividend of 0.118 yuan a share, little changed from a year earlier. Its stock rose 0.8 percent to close at HK$5.12 yesterday in Hong Kong trading, before the earnings release.

The carrier has dropped 11 percent this year in Hong Kong. China Southern Airline Co. (1055), the nation’s biggest by passenger numbers, has fallen by the same amount and China Eastern Airlines Corp. has declined 4.4 percent. The benchmark Hang Seng Index has gained 14 percent.

Air China, including units Air Macau and Shenzhen Airlines, filled 81.5 percent of seats last year with paying customers, an increase of 1.4 percentage points. On international routes, the load factor fell by 1.2 percentage points compared with a 2.8 percent rise on domestic routes.

The group fleet total 432 planes at the end of last year, according to a press release. That included 288 planes in the main Air China unit.

Booming tourism puts heritage sites under threat

Source: Xinhua via China Daily

Booming tourism in the Tibet autonomous region is putting the preservation of its centuries-old heritage sites under unprecedented threat, according to experts.

The local tourism administration is expecting a record 10 million visitors to Tibet this year, a "real challenge" for Tenzin Namgyal, deputy chief of Tibet's cultural heritage administration.

"The boom will certainly bring wealth, but it will also put the safety of Tibet's heritage sites to the test," he said, ahead of the start of the tourist season in May.

Tibet has 4,277 major cultural heritage sites, mostly monasteries.

"These are often centuries-old mud and wood structures that are extremely vulnerable and need immediate protection," he said.

Particularly since the 2006 opening of a railway to Tibet, visitors have flocked to these monasteries, putting unprecedented pressure on the already ramshackle structures.

"Some monasteries suffer subsidence, some have deformed walls and many of the precious frescos are damaged by temperature and humidity changes and excessive exposure to flashlights," said Tenzin Namgyal.

He believes the situation could deteriorate as the number of visitors continues to rise.

Tibet has reported an average 30 percent increase in the number of visitors annually in recent years, said Tsewang Tashi, vice president of the regional federation of industry and commerce.

In 2011, nearly 8.7 million trips were made by visitors from home and abroad to Tibet.

Meanwhile, the plateau region is planning to draw 15 million visitors annually by 2015.

"Tibet is facing a dilemma: tourism authorities want more visitors and higher revenue, while we, as heritage guardians, want fewer tourists to keep the sites safer," noted Tenzin Namgyal.

The regional government, he said, has worked hard to settle on compromises that meet the demands of both sides.

One significant move was to encourage visitors to travel during the slack seasons of fall and winter. Last year, Tibet's tourism authorities and companies offered special winter tourism packages.

Meanwhile, authorities are cracking down on ticket scalpers at major destinations, including the Potala Palace.

The palace was built in the seventh century and expanded during the 17th century. It was placed on UNESCO's list of world cultural heritage sites in 1994.

This year, the palace will receive an estimated 1.3 million visitors, up from last year's 1.16 million, said Khyungda, an official with the Potala Palace administration.

Between May and October, the administration places a daily limit of 4,000 on visitor numbers for safety. This year, it has installed a 4 million yuan (US$630,000) system to monitor visitor flow.

China's central government has invested heavily in preserving heritage sites in Tibet.

In the five years from 2011 to 2015, it will spend an estimated 1.7 billion yuan on preserving Tibet's cultural heritage, at least 300 million yuan more than the total over the past three decades.

7 of China's coolest outdoor activities

China is not famous for adventure tourism, but it’s actually one great destination to seek a new adrenaline high.

And here are seven ways (in no particular order) to travel the Middle Kingdom with a new heart rate.

1. Kiteboarding, Fujian

If you crave speed, like getting wet, and are willing to tear up your life-insurance, then this full-throttle activity, which fuses sailing, windsurfing and wakeboarding, must be attempted at least once.

The sport only made it to China a few years ago, but the locals have chucked themselves into it (quite literally).

There’s now a kiteboarding epicenter along Xiaman’s sandy enclave -- where ferocious winds create the perfect conditions to pull off spins, flips, loops and mega-jumps, while riders hurtle along at up to 92 kph. Learn the ropes in less than 10 hours.

Price: Kiteboarding courses start from RMB 3,000 (US$445) for eight hours of tuition, including equipment hire.

Details: Contact Windshield Outdoor Sports for lessons on +86 152 5925 6904 or +86 159 6082 0204. Visit www.chinakitesurf.com for more info.

2. Hiking, Tibet Autonomous Region, China

Glaciers thousands of meters high, untamed forests and antelopes, Himalayan black bears and wild yaks -- this land of rocky desert and incredible mountains is as untainted as it is unmissable.

Hikers spend years exploring these unchartered realms, with piercing blue skies, fascinating culture and picture perfect scenes in every direction.

One of the most challenging walk across the "Roof of the World" starts in Lhasa, where you can acclimatize with a gentle climb up the 1,036 steps of the Potala Palace, then watch the solitary monks debate, chant and prey at the Drepung and Sera Monasteries.

When your head has stopped pounding from the altitude, venture into the countryside and the Kyi-chu Valley for a view of scattered multi-colored Buddhist prayer flags against serrated rocks -- in this area you’ll also meet lone nomadic families living off the land.

From here the road continues to Tibet’s most iconic scene -- the highest mountain range in the world. Stop, gaze, and try and identify Mount Everest among the fabled peaks.

Price: Package tours start from RMB 16,000 (US$2,545) per person (excluding airfare) for a private tour based on a group of four people. Price includes accommodation, meals, equipment and an Alien's Travel Permit to the region.

Details: Contact Tibet Tour Travel Experts on +86 21 6431 1184 or visit www.tibet-tour.com for more info.

3. Diving, Zhejiang

With only a high-powered flashlight to guide you through the murky, dark waters, it’s easy to lose your dive partner and be stranded in the vast abyss of Qiandao Lake (aka Thousand Island Lake).

However, intrepid divers will understand the appeal when they descend to 24 meters and bump into a wall that surrounds a giant dormant city.

The 1,300-year-old gated Lion City (狮城) was evacuated more than 50-years ago due to a deliberate flood started to create a reservoir, yet the eerie and forgotten remains, including detailed pai fangs, houses and intact furniture, still sit under the water waiting to be discovered once again.

Move in the shadows on this fascinating adventure dive and snap away at the gruesome gargoyles guarding the gateway, which pop out of the sinister surroundings, and discover new routes through the remarkable sunken buildings.

Price: Three-day, two-night dive trips to the lake cost from RMB 3,280 (US$525), including equipment, accommodation and meals.

Details: Contact the Big Blue dive company to book a trip leaving from Shanghai on +86 21 6291 2110 or visit www.big-blue.cn.

4. Mountain biking, Yunnan

One of the rides of your life consists of a challenging climb up to 1,900 meters on two wheels.

Cycling around 40 kilometers per day on varied terrain, from cobbled streets, tricky dirt tracks and sheer cliff faces, you’ll snake past incredible sights such as the ice-capped Jade Dragon Mountain and one of the world’s deepest river canyons -- Tiger Leaping Gorge.

Along the way you’ll meet the friendly Nakhi people wearing striking tribal costume and find farmers carrying firewood, collecting wild herbs and mushrooms.

Soak your aching muscles and blisters in Shaxi at Bailongtan natural spring, surrounded by lush vegetation where it’s possible to spot mustached laughing thrush and spot-breasted parrotbill.

Price: RMB 13,650 (US$2,150) including a guide and accommodation. RMB 1,000 for bike hire.

Details: For a 14-day guided cycle trip with Bangkok-based Spice Roads, contact +66 2 712 5305 and visit www.spiceroads.com for more info.

5. Parkour, Shanghai

A core group of enthusiasts have turned Shanghai into an urban gymnasium -- flipping, spinning and traversing high towers, walls and obstacles effortlessly. Now you can join them.

If you’ve got the balls, it’s possible to learn how to handstand on the side of the Jin Mao Tower or back flip off of the Oriental Pearl Tower. Shangahi Parkour Center offers the chance to learn these moves, plus how to use your body as effectively as possible to cross our modern and varied landscapes.

They’ll teach a variety of climbing, martial arts and acrobatic techniques. And, while you’re at it, you get to see one of Asia’s most iconic cities from an entirely different perspective.

Price: Free.

Details: Contact Martin at Shanghai Parkour Center to train at various spots around the city, including Metro Line 1 Huangpi Nan Lu Station, Metro Line 7 Chuanchang Lu Station (near the Huangpu River) and Yan’an Xi Lu. Call +86 186 2133 7903 to check sessions and lesson timings.

6. Surfing, Hainan

Mellow glassy swells or three-meter peeling rides are available at this untouched teardrop-shaped island.

The surf scene in this laid-back tropical setting is how we imagine Hawaii in the 1960s, with a super-friendly Beach Boys vibe.

Here you can carve uncrowded waves all day.

We recommend the mellow beach break at Houhai Bay (great for longboarders and beginners) or Riyuewan (where the annual Hainan Surf Open is held) for a decent rock-bottomed point break.

Price: Rental from RMB 40 (US$7), surf lessons from RMB 300 (US$50, for two hours).

Details: Contact Surfing Hainan in Dadonghai for lessons, surf safaris and board hire on +86 135 1980 0103. Or visit www.surfinghainan.com for more info.

7. Skiing, Hebei

While this place is no Aspen or Whistler, it’s a lesser-known ski spot meaning the pistes are uncrowded and stress free. There are a 18 powdery slopes at Wanlong, including the resort’s sweet 2,500-meter Jade Dragon piste.

There’s also a good variety of advanced and intermediate runs and a 500-meter baby run where beginners can get a taste of the action.

If you’re a park rider, try the decent immaculately crafted pipes, big air ramps and smooth grinds in the snow park.

Plus, if there’s no guarantee of snowfall at the resort, they’ll blast it with their snow cannons, meaning you’ll always be able to ride. Happy days.

Ski season in Wanlong runs from October-March.

Price: Lift tickets cost approximately RMB 300 (US$50) on weekday. Ski rental starts at RMB 250 (US$40).

Details: Contact China Ski Tours on +86 150 3111 6227, or visit www.chinaskitours.com for more info.

Source: CNN Go By Jade Bremner

Hotel giants bet big on Sanya tourism

Source: By Wang Wen in Sanya (China Daily)

China's southern Hainan province is a veritable paradise, with tourists flocking to its sunny shores and golden sands.

However, a shadow was recently cast over this "paradise".

The island and, in particular, its beach city Sanya, made headlines nationwide with the eruption of a tourist overcharging scandal during the Spring Festival holiday in January.

Luo Di, who works for a Beijing-based real estate agency, wrote on China's popular microblogging site Sina Weibo that his friend was charged 4,000 yuan ($635) for a simple three-course meal in Sanya.

Sanya's industry and commerce bureau also revealed that a seafood restaurant charged customers 9,764 yuan for a seven-course meal during the holiday.

These revelations sparked a torrent of complaints from tourists who were angry at being overcharged on the island, with many of them vowing not to travel there any more.

Potential investors, however, remain keen to cash in on the island's booming economic activities.

Luxury hotels, for example, are speeding up their expansion in Sanya, leading to concerns that a bubble is forming in the city's tourism market.

When it comes to high-end infrastructure, many are wondering whether the island has enough bays to accommodate the luxury hotel expansion wave, although they know that the industry's big guns' enthusiasm for Hainan remains undimmed.

Big players enter

In a sign of this continued interest from the industry's major players, Sol Kerzner, a South African business magnate operating one of the world's most expensive hotels in Dubai, has made Sanya his first destination in China.

Kerzner International Holdings Ltd, based in Dubai, whose flagship brand is Atlantis in the Bahamas and Dubai, has snapped up Tufu Bay in Sanya, virgin territory for tourism.

Kerzner, founder and chairman of Kerzner International, said that he planned to open his first Chinese resort in early 2014.

The planned resort will take up an area of 16 hectares and have a half-kilometer coastline.

High-end hotel operators have long battled for a spot in Sanya, where developed beachside locations have fallen short of the increasing demand since the earliest high-end settlements appeared in 1996.

There is no shortage of buyers. Almost every virgin territory in Sanya is snapped up as soon as the local government plans to develop it.

The city now boasts a greater density of high-end hotels than any other city in China, including Beijing and Shanghai.

Sanya's local government said there are 223 tourism hotels in the city, including 13 five-star hotels, 20 four-star hotels and 26 hotels that have been built to a five-star standard, but have yet to be graded.

Almost every famous hotel brand has opened a hotel in Sanya, the crown jewel of Hainan, China's international tourism island.

Marriott International Inc opened its third hotel in Sanya last June and has two more in the pipeline.

"We are growing an increasingly strong presence in Hainan," said Paul Foskey, chief development officer of Asia Marriott International.

"Our existing hotels are performing exceedingly well."

Marriott's Ritz-Carlton Sanya located on Yalong Bay is the most successful Ritz-Carlton anywhere in the world, he added.

St Regis Hotels and Resorts International Inc, the top high-end hotel brand operated by Starwood Hotels and Resorts Worldwide Inc, invested 2.5 billion yuan in its first Chinese resort in the last available area of coastline on Sanya's crowded Yalong Bay in December 2011.

Thanks to this pricey purchase St Regis Sanya became the only resort in the city of Sanya with a yachting marina.

On the same day as the St Regis opened for business, MGM Resorts International also opened its first hotel in the Chinese mainland in Sanya.

In recent years, five-star hotels have become the major players in the battle for beach resources. And as hotels and resorts in Sanya become increasingly luxurious, super five-star hotels have also joined the fray.

The latest developed bays in Sanya will soon be locations for 24 hotels, and all available land there has already been snapped up. This is the reason Kerzner opted for Tufu Bay, in Lingshui county, a relatively remote destination from the urban area of Sanya.

In the long-term, a greater variety of hotels enhances the appeal of a destination, increases the marketing channels directed at consumers and attracts more demand, said Hans Galland, senior vice-president of Jones Lang LaSalle Hotels, the hospitality industry division of Jones Lang LaSalle Inc, a Chicago-based real estate investment services company.

Galland said that based on the company's estimates, the number of rooms in international four- and five-star hotels in Sanya will increase by about 70 percent this year compared with the end of 2010.

According to a plan published by Hainan province's travel committee, 76.8 million person-trips are expected to be made to the island annually by 2020.

Too many?

As more luxury hotels move in, some industry insiders have warned that Sanya's hotel industry may be overheating due to the abundance of high-end hotels.

"The presence of too many high-end hotels has pushed up the average price of hotel stays in Sanya," said Wang Jianmin, a researcher at the Tourism Research Center of the Chinese Academy of Social Sciences.

During this year's Spring Festival, a peak season for tourism, the average price of rooms in five-star hotels went up to 3,668 yuan per night, compared to 1,298 yuan one day before the festival.

The week after the Spring Festival, in late January, the average occupancy rate of hotels in Sanya remained around 70 percent compared with 80.48 percent during the Spring Festival, according to tourism agencies.

Each holiday season, the high price of hotel rooms in Sanya is a hot issue. Although the local government has set a price ceiling to cope with public criticism, the average price of hotel rooms keeps rising.

Although they may seem unacceptable to the vast majority of people in China's middle-income bracket, analysts said the soaring prices are normal because they reflect the real demand for quality hotels.

"The supply of high-end hotels in Sanya is still not enough," said Galland.

Only 9 percent of visitors to Sanya stayed in resort hotels during the Spring Festival, but these hotels were all booked out.

Analysts said this showed the big gap between demand and supply for quality hotels in Sanya.

If visitors cannot afford a resort hotel, they have to look for cheaper hotels or guest houses, which are nearer to the free public beaches in the city's downtown area.

But in these types of accommodation, which are often privately run, customer comfort often takes a back seat, and the only beaches their guests can access are the public ones where pollution is a serious issue.

"The government has not designated Sanya as a high-end tourism destination, but actually only rich tourists can enjoy here," Wang Jianmin said.

"The high price of hotels puts off some potential tourists."

The good news is that the local authorities are already taking steps to address the situation.

Available accommodation at guest houses and apartments in high-end communities increased by 18 percent in the past two years.

During the Spring Festival, the average occupancy rate of Sanya's hotels declined by 3.44 percentage points compared with last year, according to figures from the local government.

Analysts said the presence of more budget hotels will not squeeze the revenues of high-end resorts, since they target a different group of consumers.

Alan Leibman, chief executive officer of Kerzner International, said Chinese tourists are looking for better traveling experiences and this gives his company confidence in the long-term market prospects.

Hainan also expects to welcome more foreign visitors, who only accounted for about 2.7 percent of the total visitors to the province in 2011.

Leibman shares that optimism. He said he was encouraged by his recent trip to Moscow, where many top Russian tourism operators are showing great interest in Sanya.

"Our customer group should be a combination of Chinese as well as international guests, who are followers of our hotel brands," he said.

China's Big Airlines Spread Their Wings

Source: Wall Street Journal By Doug Cameron and Andrew Galbraith

China's big airlines are starting to throw their weight around on the global stage, targeting international passengers and freight in a move that could redraw the industry's balance of power.

The Chinese market has until now been viewed as an opportunity for international airlines considering the potential of millions of new passengers, while Airbus and Boeing Co. racked up billions of dollars in aircraft orders.

Now, China's three largest airlines—which report full-year earnings this week—are starting to expand by offering bargain-basement fares from Asia to Europe and North America via their own domestic hubs.

Targeting transfer traffic has been successfully employed before, notably by KLM in the Netherlands, Singapore Airlines Ltd. and, more recently, Dubai's Emirates Airline, where as many as 70% of the passengers connect through Persian Gulf hubs on their way to somewhere else.

The rapid expansion of the Gulf carriers, in particular, has enraged rivals such as Deutsche Lufthansa AG and Delta Air Lines Inc., which claim these companies are unfairly subsidized, a charge Emirates and others deny. But aviation experts say this could be dwarfed by developments in China.

"The great advantage of the Chinese carriers is they have enormous [passenger] flows into and out of their own country," said Peter Harbison, executive chairman of the CAPA Centre for Aviation, a Sydney-based consultancy.

Chinese airlines are able to fill up most of their planes with higher-priced local passengers and then sell any extra space at cheap prices, and can also exploit a geographical position well-suited for the fastest flights from many parts of Asia to the U.S. and Europe.

In contrast to the criticism leveled at Emirates and its Gulf rivals, international carriers are also wary of upsetting Chinese partners, as well as ruffling any diplomatic feathers in what remains an important market.

Hong Kong-listed Air China Ltd. is already the world's largest airline by market value—at $11.8 billion, close to twice that of United Continental Holdings Inc. and like China Southern Airlines Co. ZNH -2.28%and China Eastern Airlines Corp. already ranks among the top 10 global carriers by capacity.

Guangzhou-based China Southern has been the most aggressive in marketing itself as the cheapest way to travel between Asia and Europe, in part because it is the most exposed to the expansion of China's high-speed rail network.

The airline started touting its Guangzhou hub as the "Canton Route" between Asia and Europe, a riff on the "Kangaroo Route" run for decades by airlines such as British Airways and Qantas Airways Ltd.

China Southern offered fares of as little as 1,100 Australian dollars, or US$1,150, round-trip between Sydney and Paris, which Mr. Harbison said was half that charged by Australia's Qantas.

These fares are also starting to appear for the first time on popular Internet travel sites such as those run by Expedia Inc., and the Chinese carriers are also working hard to improve their service reputation.

China Eastern kicked off the reporting season, delivering a 7.7% drop in full-year profit to 4.58 billion yuan (US$722.2 million), and announced a planned joint venture to launch a Hong Kong-based low-cost carrier in partnership with the Jetstar unit of Australia's Qantas Airways Ltd..

JetStar Hong Kong venture is due to start flying next year, targeting leisure travelers on shorter hops around the region, rather than the longer flights in China Southern's sights.

Analysts expect Air China to earn profit of about 9.2 billion yuan (US$1.46 billion) for 2011 when it reports on Wednesday, down sharply from 12 billion yuan last year because of a charge against retiring older planes. Second-ranked China Southern is seen earning 6.3 billion Hong Kong dollars ($811 million) when it reports on Thursday.

Kenting National Park in Taiwan

Founded on January 1st, 1984 and located on the Hengchun Peninsula of Pingtung County, the park is also the southernmost park and the only tropical one in all of Taiwan. It covers an area of 333 square kilometers, including 181 square kilometers of land and 152 square kilometers of sea. Featuring scenic mountains, tropical forest, breathtaking beaches and coral reefs, the park attracts thousands of travelers both from home and abroad every season. (Source: china.org.cn)