The Chinese Ministry of Commerce said Monday that the restaurant industry sales in China have increased by 21.4 percent in 2004 compared with that of 2003, reaching 748 billion yuan (90.45 billion US dollars).

According to statistics from the ministry, the government collected 41.1 billion yuan of taxes from the industry, 23.3 percent more than that of the previous year. The industry's sales accounted for 14 percent of the total 2004 retail sales in China. It also had more foreign-invested projects, 30.8 percent of that of the previous year, with actual investment of 400 million US dollars.

According to the ministry, rapid growth of the industry in 2004was first attributed to rising demand to eat out. Chinese spent a record high of 580 yuan per person to eat out in 2004.

The second reason is that the industry has successfully developed the market of exhibition and festival catering. In the last six months when exhibitions and festival were concentrated, the retail sales reached 80 billion yuan, 18 percent higher than that of 2003.

Source: Xinhua