The government of Kaifeng City in Henan Province plans to relocate more than 80,000 families from the old city downtown within four years to make way for a 200,000-square-meter Song Dynasty tourist site.

This attraction would draw on the city's cultural and historical background as one of the seven ancient capitals of China.

The project needs huge investment - including at least 100 billion yuan (US$15.87 billion) to relocate residents - but Kaifeng's annual income is only 5 billion yuan, making the plan a big gamble, reported China Business Journal yesterday.

Kaifeng officials admit that it is a tough challenge, but believe the plan can benefit the city and its people in the long term.

"We are fully prepared for a tough job," said Kong Xiangcheng, vice director of Kaifeng's old city downtown redevelopment headquarters.

According to officials, the government will this year start demolishing 5.80 million square meters of old residential areas in dilapidated neighborhoods. This is set to take four years and will involve the relocation of about 80,000 families.

Their homes will be replaced by a tourist site themed on the Song Dynasty (960-1279).

Despite Kaifeng's royal history - it was China's capital under nine emperors and once capital city of Henan Province - it is the poorest city in the province.

As its old industries have declined, the city has sought to replace them with service industries, and tourism - considered the most promising prospect.

Kaifeng attracted more than 28 million tourists in the first half of this year, but still lags behind other cities.

Now officials hope the city's Song Dynasty heritage will boost the industry.

This year, the government aims to relocate 35,000 residents, at a cost of 20 billion yuan, as their homes are demolished.

The city plans to meet the total relocation cost of 100 billion yuan over four years through issuing local government bonds or borrowing from banks.

The city government has experienced difficulties attracting real estate companies to invest into the old city downtown demolition project, as there is almost no profit in doing so under government restrictions.

Many residents of targeted area are on low incomes - some worked in old industries that went bust - and many homes were illegally constructed.

Kaifeng's government has not yet revealed any plans to help residents with employment opportunities once they are relocated out of downtown.

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