Sino Express officials say the firm plans to build out the newresort through the end of the decade, during which time publicinfrastructure connecting the site to a nearby commercial districtwill be enhanced by the local government. Among the perceived luresof the property is its proximity near the popular Lake Dongtingvacation enclave. Villas will be constructed as part of the firstof three phases of development, with the second stage focused onaddition of a sports complex and recreational facilities. A hoteland residential tower are to be the key elements of the finalphase. Sino Express has not branded the resort or estimated theroom count for the villas and hotel, but officials say a finaldesign will be unveiled over the near term.

China-based Sino Express is among several hospitality focusedcompanies and tourism development groups that anticipate theleisure sector will continue to expand in the country. Dozens ofmultinational hotel operators are joining homegrown entities suchas Sino Express and committing to ambitious room expansion programsand investment in leisure destinations. The Chinese middle class isa key driver behind the anticipated demand as that constituencyseeks to place a surge of disposable income. One recent reportestimates domestic Chinese tourism-related trips will exceed 1.5billion by the end of the decade, up from 1.2 billion in 2005,while China is forecast to become the most visited country in theworld by 2017. The 2008 Beijing Olympics are expected to be acatalyst for increased acceptance of the country as a traveldestination, followed by the Shanghai Expo in 2010.

Cultural, historic and scenic spots are among the locations thatSino Express is setting its sights on, with company officialsindicating they plan to buy and develop their way into becoming aleader in leisure in the country. The company has aligned itselfwith a hotel brand, Square Inn, to handle development andmanagement of the resort hotel elements, and recently partneredwith an on-line reservations system.