CHINA'S hotel and restaurant sales growth accelerated to 17.9 percent in the first six months of the year as the country's economy expanded, the Ministry of Commerce said in a statement on its Website today.

The industry's revenue of 581.2 billion yuan (US$76.5 billion) was 16 percent of China's total retail sales in the first half of the year, the ministry said, according to Bloomberg. Hotel and restaurant sales growth accelerated from 15.3 percent in the first half of last year.

The commerce ministry estimated that sales for the industry in the second half will be 638.8 billion yuan, bringing this year's total to a record 1.22 trillion.

China's economy grew 11.1 percent in the first quarter from a year earlier. Figures for the first half haven't been released.

The economy may expand 10.8 percent in 2007, the fastest pace in 12 years, according to a report by economists at the central bank's research department.

Consumer prices may rise 3.2 percent, exceeding the government's target, according to the report by the People's Bank of China researchers.

Hotel and restaurant sales growth accelerated to 18.5 percent in the second quarter from 17.4 percent in the first quarter, the Ministry of Commerce said.