Lhasa - Economy

Economy

Competitive industry together with feature economy play key roles in the development of Lhasa. With the view to maintaining a balance between population growth and the environment, tourism and service industries are emphasised as growth engines for the future. Many of Lhasa's rural residents practice traditional agriculture and animal husbandry. Lhasa is also the traditional hub of the Tibetan trading network. For many years, chemical and car making plants operated in the area and this resulted in significant pollution, a factor which has changed in recent years. Copper, lead and zinc are mined nearby and there is ongoing experimentation regarding new methods of mineral mining and geothermal heat extraction.

Agriculture and animal husbandry in Lhasa are considered to be of a high standard. People mainly plant highland barley and winter wheat. The resources of water conservancy, geothermal heating, solar energy and various mines are abundant. There is widespread electricity together with the use of both machinery and traditional methods in the production of such things as textiles, leathers, plastics, matches and embroidery. The production of national handicrafts has made great progress.

With the growth of tourism and service sectors, the sunset industries which cause serious pollution are expected to fade in the hope of building a healthy ecological system. Environmental problems such as soil erosion, acidification, and loss of vegetation are being addressed. The tourism industry now brings significant business to the region, building on the attractiveness of the Potala Palace, the Jokang, the Norbulingka Summer Palace and surrounding large monasteries as well the spectacular Himalayan landscape together with the many wild plants and animals native to the high altitudes of Central Asia. Tourism to Tibet dropped sharply following the crackdown on protests in 2008, but as early as 2009, the industry was recovering. Chinese authorities plan an ambitious growth of tourism in the region aiming at 10 million visitors by 2020; these visitors are expected to be domestic. With renovation around historic sites, such as the Potala Palace, UNESCO has expressed "concerns about the deterioration of Lhasa's traditional cityscape."

Lhasa contains several hotels. Lhasa Hotel is a 4-star hotel located northeast of Norbulingka in the western suburbs of the city. Completed in September 1985, it is the flagship of CITS's installations in Tibet. It accommodates about 1000 guests and visitors to Lhasa. There are over 450 rooms (suites) in the hotel, and all are equipped with air conditioning, mini-bar and other basic facilities. Some of the rooms are decorated in traditional Tibetan style. The hotel was operated by Holiday Inn from 1986 to 1997 and is the subject of a book, The Hotel on the Roof of the World. Another hotel of note is the historical Banak Shöl Hotel, located at 8 Beijing Road in the city. It is known for its distinctive wooden verandas. The Nam-tso Restaurant is located in the vicinity of the hotel and is frequented especially by Chinese tourists visiting Lhasa.

Lhasa contains several businesses of note. Lhasa Carpet Factory, a factory south of Yanhe Dong Lu near the Tibet University, produces traditional Tibetan rugs that are exported worldwide. It is a modern factory, the largest manufacturer of rugs throughout Tibet, employing some 300 workers. Traditionally Tibetan women were the weavers, and men the spinners, but both work on the rugs today.

The Lhasa Brewery Company was established in 1988 on the northern outskirts of Lhasa, south of Sera Monastery and is the highest commercial brewery in the world at 11,975 feet (3,650 m) and accounts for 85% of contemporary beer production in Tibet. The brewery, consisting of five story buildings, cost an estimated US$20–25 million, and by 1994, production had reached 30,000 bottles per day, employing some 200 workers by this time. Since 2000, the Carlsberg group has increased its stronghold in the Chinese market and has become increasingly influential in the country with investment and expertise. Carlsberg invested in the Lhasa Brewery in recent years and has drastically improved the brewing facility and working conditions, renovating and expanding the building to what now covers 62,240 square metres (15.3 acres).