Lhasa riots see growth rate halved in Tibet

By Nerys Avery  |   2008-8-2  |     NEWSPAPER EDITION

TIBET'S growth rate halved in the first six months of this year after riots in Lhasa in March led to a slump in tourism, consumption and output, the regional government said.

The region's economy expanded 7.4 percent in the first half from a year earlier, down from 14.7 percent in the year-earlier period.

Output in the services industry, which includes tourism, catering and retail sales, rose 7.2 percent to 10 billion yuan (US$1.46 billion), less than half the growth rate a year earlier. Services accounted for two thirds of the economy in the first half of 2007, according to data on the local government Website.

The central government banned foreign and domestic tourists from visiting Tibet after riots broke out in the regional capital.

The government announced on June 24 that it was lifting the ban on international tourists after re-opening the region to domestic tour groups at the end of April.

Retail sales in Tibet in the first half rose 9.6 percent from a year earlier to 5.7 billion yuan, the government statement said, compared with China's overall growth rate of 21.4 percent.

The number of domestic and overseas tourists visiting Tibet slumped 69 percent to 342,000, the statement dated Thursday added.

China Business News reported yesterday that income from tourism in the region in the first half slumped 71 percent to 290 million yuan.