China's retail sales in the hotel and catering sector hit 205.91 billion yuan (27 billion U.S. dollars) in January-February period of 2007, a year-on-year increase of 17 percent.

Figures published on Friday by the Ministry of Commerce showed that retail sales from the hotel and catering sector accounted for 14.2 percent of the country's total retail sales of consumer goods during the said period.

Statistics also showed the number of newly approved foreign-funded hotels and catering projects drop 22 percent year-on-year to 103, with contracted foreign investments totaling 220 million dollars, down 45.7 percent.

Actualized foreign investment increased 5.8 percent to 140 million dollars, said the ministry.

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