Chinese cities issue vouchers to boost consumer spending

Multiple Chinese cities are distributing consumption vouchers to residents as they aim to boost spending and the economy after different parts of the country have resumed work and production, following the optimization of COVID-19 control measures.

Zhengzhou, the provincial capital of Henan province, began its consumption promotional events on Dec 28. The local government will invest 250 million yuan ($36 million) to boost consumption, and the main form is to issue various kinds of consumption vouchers to local residents, according to the local government.

Also, Zhengzhou will hold more than 260 related activities to celebrate the upcoming New Year and the Spring Festival, according to a recent news conference held by the local government.

Meanwhile, the tropical island of Hainan province started its New Year's carnival on Dec 23. On Dec 30, with the closing of the carnival, two rounds of travel consumption vouchers will be issued to further encourage tourism spending, according to the Department of Tourism, Culture, Radio, Television and Sports of Hainan.

It is noteworthy that before 11 pm on Dec 31, consumers will need to redeem the vouchers on six major online travel platforms, which are Trip.com, Fliggy, Tongcheng Travel, Tuniu, Mafengwo and Qunar. Travelers will be able to book hotels and purchase related tickets of sightseeing spots in discounts with the vouchers.

"The key areas to promote consumption growth should focus on service consumption, housing and transportation. Those areas are the highlights of the consumption market and will have a strong effect to help further drive spending," said Wang Qing, deputy director of the Market Economy Research Institute at the Development Research Center of the State Council.

"In the long run, those sectors will serve as hot areas for the upgrading of residents' consumption structure, and they boast good market growth potentials," Wang said.

In Northeast China's Jilin province, a popular ice and snow travel destination, the local government of Changchun plans to issue consumption vouchers worthy of 20 million yuan to stimulate the pent up demand of ice and snow travel from consumers.

The local government will issue the vouchers in several rounds between Dec 28 and Feb 28, 2023, and the vouchers can be redeemed for consumption at some major ski resorts as well as ice and snow parks in Jilin.

The local government of Changchun said it aims to further promote rapid recovery and revitalization of the cultural tourism market after the optimization of the pandemic prevention and control measures, and will give full play to the fundamental role of cultural tourism consumption in driving economic growth.

In addition, between mid-December and the Spring Festival of 2023, the Nanshan district of Shenzhen will issue 200 million yuan worth of consumption vouchers to boost the purchase of consumer goods such as cars, home appliances, digital devices, clothing, jewelries, watches and food, the local government said.