In order to ensure the completion of the improvement project for some hotels, which fulfills the request for receiving foreign guests before the opening of 2004 CAEXPO, the following regulations have been made:
I. Set-up of a coordination organization
Nanning Municipal Government set up a hotel facilities improvement office (hereinafter as office) for serving CAEXPO to implement complete arrangement, coordinate instruction, supervisory inspection and various preference policies.
II. Requirements for access to market, approval and supervision
1. Energetically promote stock and stock cooperation system to involve private capital, foreign capital in the hotel development and construction for our city. Encourage and support the hotels to attract foreign funds by way of transferring power of operation, franchise rights, owner’s equity and stock share, etc. for their facilities improvement and construction. Inspire and assist external investors to cooperate with the hotels in our city through various forms of investment, namely, capital, well-known brands, marketing and network technologies, advanced administration methods, etc.
2. For those investment projects for building hotels receiving foreign guests, the system of joint examination and approval will be carried out by the municipal approval office as well as the offices for planning, programming, construction, fire protection, environment protection and some other related offices. When examining the project and fire protection designs, the construction and fire protection administration departments will have a green channel to speed up the approval process. And when the construction work has been completed, the complete check and acceptance should be done at the same time with fire protection acceptance.
3. Every administration department should spread the legislation, regulation and policy propaganda to the hotels by keeping the principle of putting prevention first. If the punishment is done, the initially punished hotels should have the chance to make the ratification and improvement in advance.
4. Increase road improvement and surrounding environment renovation around the hotels. For those leading facilities improvement hotels, the renovation project items already have been listed in the 2004 CAEXPO “The Overall Working Program for renovating the city appearance” and all the work should meet the standard of finished municipal infrastructure, complete road signs and clean city.
III. Hotels Star Rating
1. For those hotels who have applied for up the 4 star (4 star included) rating and have been in operation less than one year, the municipal tourism administrative department should send inspectors to get involved in the facilities construction and improvement work in advance and instruct the hotels to solve the actual problems that arise during the reconstruction, training and declaration according to the technical specification of the star hotels.
2. Carry out the star rating system for the rebuilt and improved hotels according to the newly issued rating standard of the state. For those who run the business less than one year, the municipal tourist department will instruct them to complete the reconstruction and improvement before Oct. 1, 2004 and can directly award the star if they can fulfill the evaluated requirement.
3. Carry out the elementary evaluation for those applying for 4 star rating and assist to speed up the rating work implemented by the tourism administration of the Autonomous Region and actively assist those who apply to the National Tourism Administration for 5 star rating.
IV. Tax Policy
1. In the light of the document of finance and tax department No.208 [2002], those whose newly re-employed laid-off workers with more than one year working contracts have made up as much as 30% or above of their total employees, they can enjoy as long as 3 years’ exemption from corporate income tax after examination by labors administrative department and taxation affairs department.
2. When hotels, separated from some big state-owned enterprises after restructuring the enterprises, employ the workers from the existing enterprises and sign contracts with them for one year or more, they will enjoy as long as 3 years’ exemption from corporate income tax after examination by labors administrative department and taxation affairs department according to the document of finance and tax department No. 208 [2002].
3. If the hotels can’t afford to pay the house property tax as for the regulation, they can apply to the local tax bureaus. After being audited by the local tax bureau they can apply to the tax bureau of Guangxi Autonomous region for getting some tax deduction or house property tax free.
4. Projects listed in 2004 leading improvement programming projects of CAEXPO can enjoy the related preference policies written in “Notice for Derating Some Construction Declaration Fee on Key Projects of City Construction Issued by the Municipal People’s Government” (Nanning Government No. 45 [2002])
5. The price of the bill for water and power is charged the same as the charge for business enterprises.
V. Financing Policy
1. Set up the improvement subsidies of RMB 30 million for the 2004 key hotel rebuilt projects determined by the municipal government.
2. Hotels listed in 2004 leading Improvement program should sign a project liability agreement with the headquarter, which includes the construction criterion, project management, time for completion, investment value, auditing method and subsidies, to define the liabilities and benefits for both sides.
3. Hotels listed in 2004 leading Improvement program, who finished construction declaration before July 1st, 2004 and finished the renovation work before Oct. 1st, will get the government’s investment subsidy when the completed work is audited and accepted by the headquarter and the related functional departments. The details of the subsidy are: Subsidy = Total actual invested value × the one-year loaning interest rate issued by Bank of China × (1-3) year. The examination procedures and the years of subsidy will be separately worked out by the headquarters and accepted according to the new criteria for tourist hotel star rating standard issued by the State General Administration of Quality Supervision, Inspection and Quarantine.
4. If the hotels listed in 2004 leading Improvement program have any problems in applying for the loan from financial organizations, they can submit a written application to the headquarter and then get the assistance and coordination from the municipal planning committee or financing functional departments.
VI. Information Construction
1. The headquarter is responsible for coordinating the communication operators to supply the telecommunication program control device at a preferential price or even free of charge, install the broad band for internet into the center program control room and offer a favorable price for the cable line using.
2. Set a special space in the website of Nanning official websites, CAEXPO website, and the special websites for Tourism, coordinate the public informative serving center to provide internet publicity program for the hotels, provide tele-sounds propaganda and service channels and open the online reservation service.
3. Install fire protection alarm network system and firstly into key supporting hotels. Provide timely fire fighting service to the hotels and give some preference on the service charge.
The Municipal people’s government has the right to explain the current regulation from the date of issue.
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