Hotel, industry and travel news from around Greater China; this week: China drafts consumer right bill, Sanya duty-free's booming and more....

CHINA FACTORY GROWTH SLOWS IN APRIL
 
According to China Daily, the National Bureau of Statistics and China Federation of Logistics and Purchasing, China's Purchasing Managers' Index of the manufacturing sector declined to 50.6% in April from 50.9% in March, against 50.1% in February. April's PMI for small enterprises, meanwhile, retreated to 47.6% from 49.3% in March, the 13th consecutive month it has been lower than 50%. It was 51% for large companies, down from 51.4%. The figure was 50.7% for medium-sized companies, up from 50.3%.  
 
CHINA DRAFT AMENDMENT STRESSES CONSUMER RIGHTS
 
According to Standing Committee of the National People's Congress (NPC), China's top legislature, and China Daily, the new draft amendments provides clarification regarding the protection of personal information and suggests heavier punishments for commercial fraud. The draft also includes regulations pertaining to online shopping, as China's booming e-commerce market is not sufficiently covered by the current version of the consumer rights law. 
 
SANYA DUTY-FREE SHOP ATTRACTS TOURISTS
 
According to China Daily, promotions in the duty-free shop attracted numerous customers during the three-day public holiday for the International Workers' Day. Data released by the provincial customs authorities on April 26 showed that 1.94 million visitors have purchased goods worth RMB4.7 billion (about US$752 million) as of April 20, 2013. The offshore duty-free program, put into place in April 2011 on a trial basis, is part of an effort to promote Hainan as an international tourist destination. 
 
ROSEDALE HOTEL TO SELL LEASE OF MACAU HOTEL FOR HK$52 MILLION
 
According to Rosedale Hotel, Enjoy Media Holdings Limited, a subsidiary of the Company (Vendor), entered into the Disposal Agreement with the Purchasers (independent third party) in relation to the disposal of the entire issued share capital and interests of the Target at the Consideration of HK$52 million. The hotel, which has not yet been in operation, is currently pending on the grant of a hotel license by the relevant governmental authority.  
 
NIKES BEIJING FLAGSHIP STORE REPLACED BY H&M
 
According to China Retail News, Nike's flagship store in Beijing Wangfujing's shopping area, which is the company's first flagship store in China, will be reportedly closed when its lease expires, and H&M will be the new lessee of this site. According to reports in Chinese local media, Nike's Wangfujing flagship store was opened in 2007. With an area of 1,100 square meters, the store has three floors. Nike's sales are not bad and the company is reportedly willing to continue the rental. However, the local owner apparently prefers young and fashionable brands like H&M. Industry watchers in local media said that the Chinese sportswear market is still depressed and its attraction to consumers has decreased, even for first-class international brands. Nike's report for the second financial quarter of 2013 showed that from September to November 2012, its sales in China decreased by 11%, representing the largest decrease among its global markets. Prior to this, Nike announced plans to open 40 to 50 factory stores in 2013 and products sold in these stores will be discounted up to 70%. Adidas also said that their development focus for 2013 would be store expansion in medium- and small-sized cities in China. The company will open 800 new stores in China in 2013 and two-thirds of them will be in medium- and small-sized cities.  
 
GREAT EAGLE HOLDINGS TO RAISE US$600-700 MILLION

According to Finance Asia, Great Eagle Holdings looks set to become the first Hong Kong property investor and developer to spin off some of its hotel assets through a separate listing. According to sources, the trust is looking to raise between US$600 million and US$700 million by selling up to 49% of its total number of units. The listing vehicle will comprise three hotel properties: The Langham, Langham Place Hotel and Eaton, which are all located on Hong Kong's Kowloon peninsula. 

www.hvs.com