The Ministry of Commerce yesterday announced a plan to help revive the SARS-hit catering and hotel industries through a series of promotions and by offering them support.

The plan aims to help the catering industry maintain revenue growth of 12 per cent this year compared with last year and to reduce the losses suffered by the hotel industry by more than 20 billion yuan (US$2.40 billion).

Zhang Zhigang, vice-minister of commerce, said food festivals will be held in Beijing, Chongqing, Guangzhou, Nanchang, Shanghai and Tianjin between August and November.

Local governments are being asked to develop more supportive policies to help small and medium-sized companies, such as tax cuts and the waiving of fees.

Non-governmental organizations will also be encouraged to help.

The Ministry of Finance and the State Administration of Taxation announced in May that taxes and fees levied on some sectors, including catering and hotels, would be reduced or waived between May 1 and September 30.

The new Ministry of Commerce plan aims to help companies benefit from these measures as soon as possible.

Due to the SARS outbreak, the catering industry's revenue rose by a slim 2.1 per cent year-on-year in April and it declined by 15.5 per cent year-on-year in May. In June, the industry started a slow recovery, growing by 3.4 per cent.

The industry usually has an annual growth rate of 15 to 17 per cent.

Its revenue was 509.2 billion yuan (US$61.52 billion) last year, up 16.6 per cent compared with the previous year. The growth rate in the first quarter of this year was 16.1 per cent year-on-year.

The hotel sector's recovery has been even slower than that experienced by the catering industry, Zhang noted.

Hotels went through a particularly bad time in April and May, when only 10 per cent of hotel rooms in 10 big cities, including Beijing and Shanghai, were occupied.

The hotel industry is expected to lose 65 billion yuan (US$7.85 billion) because of the SARS epidemic, Zhang said.

The hotel industry last year had a revenue of 250 billion yuan (US$30.2 billion).

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