Vital Statistics (2006)
GDP: RMB 10.2 billion
GDP per Capita: 16,692 RMB
Economic Growth Rate: 17.5%
Population: 250,000 (urban)-270,000 (rural)
FDI: N/A
Annual Average Wage: 28,561 RMB
Government Effectiveness Rating: N/A
2006 Chinese Cities Competitive Rating: N/A
 
Lhasa Business Guide - Economic Overview
Lhasa, the capital of China's Tibet Autonomous Region, has a history of more than 1,300 years. It is the political, economic, cultural and transport center of the region. Lhasa is home to the Tibetan, Han and Hui peoples, as well as many other ethnic groups, but the Tibetan ethnic group makes up 87 percent of the total population.

The city has captured the imagination of travelers and scholars for centuries because of its remoteness and scenic beauty, its artistic and cultural treasures and its aura of spirituality, emanating from Tibet's ancient Buddhist traditions. Today, Lhasa's cultural richness and beauty are still central to its identity, but it is modernizing rapidly, along with the rest of China. The over-arching aim of the Tibetan authorities is to achieve continued development without jeopardizing one of Lhasa's most precious resources: its pristine environment. Lhasa is China's cleanest city on almost every measure imaginable. Of the myriad statistics that tell this story, perhaps none is as eloquent as this: in 2006, the total number of days on which air quality in Lhasa was rated as "good" was 363! No wonder environmental protection is such an important strand in government policy and planning.

Lhasa's most vital strategic industry is undoubtedly tourism, which generated revenue of 1.8 billion RMB in 2006. However, agriculture and animal husbandry is also important to the local economy, as are industries related to Tibetan cultural identity and history, notably the ethnic handicrafts industry and Tibetan medicine. Government policy also encourages the investigation of Tibet's mineral resources, with a view to developing the mining industry within an environmentally sustainable framework.

After long isolation from the world, Lhasa is now beginning to attract foreign investment, with companies from the USA, Japan, Australia, UK, South Korea, Denmark and Nepal among others setting up operations in Lhasa. Improvements in Lhasa's transportation, healthcare and public utilities have played an important role in smoothing the path for foreign investment, as have the government's preferential policies for foreign-invested enterprises, which enjoy tax concessions which include added incentives for those meeting targets for the recruitment of unemployed people. Also important to the government's strategies for attracting foreign investors is the Lhasa Economic and Technological Development Zone, which encourages overseas investments in hi-tech industrial projects oriented towards export. Domestic investment in Lhasa is also strengthening, targeted particularly at tourism, Tibetan medicine, highland biological products, agro-products and animal processing and ethnic handicrafts.
Going forward, the city authorities have a range of strategies to continually improve the business environment in the city. These include the eastward relocation of the CBD, which will preserve the historic character of the city center and facilitate the development of much-needed commercial real estate.



Economic Contribution Ratios by Sector
In 2006, the primary sector (agriculture, forestry, animal husbandry and fisheries) contributed 6.6 per cent of GDP; the contribution of secondary and value-added industries and construction was 24.7%, while the tertiary sector of the economy accounted for 68.7%.

Composition of GDP (%)
 

Sector	2003	2004	2005	2006
Primary	10.0	9	7.2	6.6
Secondary	23.8	24	23.5	24.7
Tertiary	66.2	67	69.3	68.7

Foreign Trade Overview
Lhasa is opening up increasingly to the outside world. It has wide cooperation and exchanges with many nations and regions in terms of science and technology, the economy, trade, culture, sports and health. In 2005, total export and import volume amounted to US$16.13 million, including US$15.18 million in exports, up by 9.4%, and US$950,000 in imports.
Exported products include aweto, carpets, garlic and plaster. Among them, carpet, mats and tapestries are popular in international markets with increasing exports sold to North America, Western Europe, East Asia and South Asia. Unique handicrafts such as tents, broadswords, wooden bowls and jewelry are also popular.

Foreign Trade and Cultural Ties
By the end of 2006, Lhasa had established sister city relationships and friendly exchange relationships with 18 cities at home and abroad including 4 international cities. Since 1993, Lhasa has held trade and economic contact events each year, signing a total of over 180 projects. The United Nations Development Program has provided US$4 million in aid for the construction of the Yangbajing Geothermal Power Station in Lhasa. The First Phase of the Lhasa River Valley Four County (District) comprehensive agricultural development project aided by the United Nations World Food Program has also been completed and put into operation. Many friendly nations and international friends provide aid for education and health in Lhasa.

Lhasa's Sister Cities

Country	City	Date
The USA	Boulder	1987.01.10
Bolivia	Potosí	1995.06
Kalmykia Republic	Elista	2004.10.27
Israel	Beit Shemesh	2007.06

 

Warning：The use of any news and articles published on eChinacities.com without written permission from eChinacities.com constitutes copyright infringement, and legal action can be taken.