CHINA'S tourism future lies in the development of secondary cities and locations, the latest issue of Asian Market Review says. The report is produced annually by Pannell Kerr Forster Consulting, which analyses the performance of leading hotels in 15 Asian cities. It says the development of secondary cities should be in conjunction with continued promotion of cultural and historical sites in Beijing, Shanghai and Xian. International tourism to Beijing has risen since events in Tiananmen Square in 1989. Total tourism arrivals in 1992 increased by 14.3 per cent over 1991 to 38.11 million. Over the same period, tourism receipts increased to US$3.95 billion, up by 38.7 per cent. For the first nine months of last year, China earned $3.31 billion, an increase of 20.3 per cent over the same period last year, according to the China Commercial News. Visitors are attracted to places such as Jiangsu province's two nature reserves for red-crowned cranes and coastal areas near Yangcheng for Pere David's deer. Hainan, the country's biggest special economic zone, is being developed into a marine province. The development will focus on international marine research and undersea tours. Shanghai has become the fastest-growing tourist attraction in the country, with revenue rising 32.5 per cent to $34 million in the first six months of 1993, over 1992, according to the China National Tourism Administration. About 1.25 million foreigners visited the city in this period, a rise of 27.6 per cent over last year. Foreign tourist leaders were Japanese, American, Hong Kong, German and French visitors. Hotel occupancies frequently topped 100 per cent, with the industry benefiting from a government moratorium on the building of new hotels in Shanghai. In Beijing, hotels enjoyed good occupancy from business and leisure travellers, aided by increased foreign trade. As the political and diplomatic centre of China, Beijing is expected to continue to be one of the country's foremost business destinations. About 570 new joint ventures were approved in the city in 1992, representing nearly twice the number approved in 1991. Group tours, at 31.8 per cent, and corporate discounts, at 23 per cent of the tourist market, led demand for upmarket hotel accommodation in Beijing. In Hong Kong, hotel room occupancy is expected to reach 90 per cent by the end of the year. Room rates are expected to rise as the number of visitors increases, while room numbers are expected to shrink because some hotels have been targeted for commercial redevelopment. Singapore received a total of 5.99 million visitors in 1992. An over-abundant supply of rooms caused staff shortages at leading hotels. While there was a 10 per cent increase in wages in 1992 over 1991, hoteliers are not optimistic about filling all vacancies. By the end of 1996, the total hotel room count in Singapore is expected to be about 32,300. In Thailand, the rapid and significant increase in hotel rooms has led to increased competition. Several hoteliers have been forced to offer big discounts and other incentives to fill their rooms. Average room occupancy for leading hotels in 1992 was 59.8 per cent, 5.9 per cent less than 1991. It is anticipated that competition among leading hotels will intensify, as new hotels continue to enter the market.