2006 will see more foreign-funded travel agencies entering the Chinese market as the Chinese government upholds its World Trade Organization agreements and eases the limits on foreign investment in the tourism field.

China's WTO commitment was to allow foreign businesses to set up their solely-owned travel agencies in China no later than December 31, 2005.

However before many foreign companies can legally enter, China's local travel agencies have already begun to lay out their businesses in hot travel areas such as the Zhujiang Delta Region in the Southern Guangdong Province in order to seek an advantageous position in the tourism market.

So far, Guang Zhi Lu has entered Yunfu city and set up its 100th branch there. Nanhu Travel Agency and West Holiday have also established their first business sites in Zhongshan, hoping to stymie future foreign competition.

Tourism professionals say the reason why travel agencies in Guangzhou are so active is mainly because the economy there is more developed than that of the rest of the country.