China's accommodation and catering retail sales reached 253.6 billion yuan (35.7 billion U.S. dollars) in the first two months of 2008, up 23 percent from the same period of last year, according to statistics released by the Ministry of Commerce.

The sales accounted for 14.5 percent of the nation's total consumption volume.

Business boomed during the lunar New Year and the soaring consumer prices also played a part, said a ministry official.

The retail sales in January rose 23.3 percent year on year to 133.6 billion yuan, and in February 23 percent to 119.9 billion yuan.

From January to February, foreign investors set up 111 new accommodation and catering enterprises, up 7.8 percent, while the contractual foreign funds increased 66.2 percent to 360 million U.S. dollars, of which 160 million dollars was utilized, up 8.4 percent.

(Xinhua News Agency March 18, 2008)