ded in rural areas. The typical Chinese is also a relatively young person. Almost one-half (46.07 percent) of the population is under age 20, and almost two-thirds (63.7 percent) are under age 30 (Waddle, 1993, pp. 59-96).
Income in China is determined largely by the type of work unit to which an individual is assigned. There is also a wide variation in incomes between urban and rural work units, and between state-owned work units and privately-owned work units. In 1989, the average annual income for an urban worker in a state-owned work unit was Y968, while that for an urban worker in a privately-owned work unit was Y1,373. Privately-owned work units employed only 440,000 persons out of total urban workforce of more than 128 million, thus, the average annual income for urban workers in state-owned work units is a more typical figure.
The cost of housing for urban workers approximates one-percent of their average annual income. Additionally, urban workers receive a 15 percent income subsidy to assist in food purchases. Medical care in China is free to the individual; costs are borne either entirely by the government, or are shared by the government and the relevant work unit (Hunter, 1994, pp. 360, 364-367).
In 1990, the total workforce in the PRC was 528 million, of whom 36.9 percent were female (Hunter, 1994, pp. 356-359). Of the total workforce, 74.9 percent were employed in rural areas. The unemployment rate in 1992 was 0.5 percent.
Business Description and Justification
The accommodations industry is dependent on and in fact a part of the travel and tourism industry. The travel and tourism industry is heavily dependent upon economic growth in the general economy. Tourism is a major industry on a worldwide basis (Frechtling, 1991, pp. 49-51).
The target market for the entrepreneur investor organization for the proposed venture is the middle income traveling public. The organization has grown rap...