7 of 12    to make Australia one of the main tourist centres of the rapidly expanding APEC region. New Zealanders remained the leading source of international trade, though this group was being rapidly over-taken by the Japanese. Growth of tourism and business travel was expected to continue to rise at 5 per cent per annum, considerably above the rate of hotel room creation, which was expected to run at 2.5 per cent per annum. The result of this was a continuing rise in hotel room rates, which were expected to rise by an average of 7.0 per cent per annum during the 1990s.  Australian legislation on the ownership of hotels and the transfer of capital were extremely liberal, and there were few problems put in the way of hotel development except for fairly strict planning regulations near the centre of towns. Inflation had remained steady through the 1980s as a consequence of economic recession. The announcement of  Sydney as the site of the 2000 Olympic Games would provide further growth. With a range of climates, Australia did not suffer from substantial problems of seasonality in tourism or business visitors. The Australian administration provided low cost finance for development of tourist sites. The normal interest rate was 50 per cent of the normal market interest rate, and companies could apply for loans for up to 50 per cent of the total project costs. Loans could be for up to 15 years. Bangladesh. Bangladesh continued to suffer from extremely low economic growth, and political instability. Visitor arrivals remained low at 120,000 per annum. There were many problems in establishing hotels, and the country operated strict exchange control regulations. Inflation was extremely high, and infrastructure problems, such as shortage of power and water continued to hamper hotel developments. The climate created further problems with a summer season that was regarded as impossible by the majority of foreign visitors. There was no easy access to local capital. China. The PRC was clearly the most rapidly growing economy in the region, with GDP growth averaging 8 per cent during the late 1980s, though inflation had become more of a problem rising from 8 to 20 per cent at the end of the 1980s. Visitor numbers continued to expand at 12 per cent per annum, which vastly outstripped hotel supply, with average occupancies above 85 per cent throughout the year. This had meant that hotel prices in the main Chinese centres were some of the highest in the region and were set to rise from the current $130 average, for premium hotels per night, by an average of 10 per cent per annum. Though the Chinese authorities had been following a policy of deregulation, there were still restrictions on the foreign ownership of hotels. Foreign companies were limited to 60 per cent ownership, and were required to make a minimum investment of $3 million. There was no easy access to local capital. Hong Kong. The change of administration in 1997 would mean that hotel investment in Hong Kong had increased in risk. The country still had a high level of occupancy and a steady stream of tourists, averaging 5 million during the late 1980s, maintaining occupancies above 75 per cent, and achieving high room rates. The country had the least restrictive rules concerning investment and the transfer of investment. The Hong Kong currency was linked to the US $, and inflation remained low throughout the 1980s. India. The Indian economy, with a large middle class and a huge number of expatriates, was one of the most interesting investment opportunities in the Pacific Rim. The Indian government had continued to relax controls over foreign investment, though planning regulations remained strict and lengthy. Controls over foreign exchange transfer remained a problem, as did inflation and the depreciation of the rupee against many of the other currencies in the region. The high temperatures in the Indian summer reduced demand for tourism for around 6 months of the year. The Indian capital market continued to expand rapidly, with more and more finance available for local ventures.