Beijing, Nanjing, Other Local Chinese Gov’ts Turn to Consumption Vouchers to Spur Spending(Yicai Global) June 15 -- A number of local governments in China, including Beijing and Nanjing, have started to distribute vouchers to residents to encourage spending on cars, home appliances, and travel.
The capital city began a new round of handing out consumption vouchers earlier this month covering 55 categories of goods, including electronics and home appliances.
Some local authorities also issued them over the Chinese New Year holiday earlier this year.
Nanjing, the capital of Jiangsu province, started handing residents vouchers worth CNY45 million (USD6.3 million) to buy cars and home appliances at the start of June.
The Hubei provincial government recently announced that it will issue CNY300 million (USD41.9 million) of home appliance coupons from tomorrow, of which more than 80 percent can be used at brick-and-mortar stores.
The local governments in Sichuan province and Hangzhou, a city in Zhejiang province, said they will issue tourism-related consumption vouchers.
The culture and tourism market has not yet recovered as the ranks of international visitors is small and Chinese consumers are being cautious, Chen Qiankang, a professor at the College of History, Culture and Tourism of Sichuan Normal University and president of the Sichuan Tour Guide Association, told Yicai Global.
The tourism industry has high expectations for the summer and the upcoming Dragon Boat Festival, Chen added.
Traveler numbers have fully recovered, but spending and per capita tourism expenditure have not yet returned to the pre-pandemic level, according to Yang Chang, head of the policy group and chief analyst at Zhongtai Securities.
Vouchers are mainly issued to stimulate spending, but the key to stabilizing consumption is to steady employment, Yang added, noting that at this stage, policies should focus on jobs rather than promoting consumption.
Editor: Futura Costaglione
