Shanghai plans issuing $74m vouchers to boost consumption

Shanghai will offer 500-million-yuan ($74 million) coupons to further spur consumption in catering, accommodation, movies and sports, the municipal government said at a press briefing on Wednesday.

Sourced from the municipal fiscal budget, the majority 360 million yuan will be directed to restaurants. Another 90 million yuan will be provided to hoteliers, 30 million to movie theaters, and 20 million to sports facilities.

Consumers living in Shanghai can apply for the coupons for restaurants, movies and sports. The accommodation coupons are open to local residents, people living in other parts of China and even foreigners traveling to Shanghai.

Restaurant and accommodation coupons will be released on a weekly basis while that for sports and movies are available every day.

The first batch of coupons will be released on Saturday. Restaurant and accommodation coupons will be released on the three payment platforms selected by the municipal government. Movie coupons will be offered on the two online ticketing platforms Maoyan and Taopiaopiao. Sports coupons can be obtained from the WeChat mini-program "Laihudong fitness map".

Wei Lu, chief economist of the Shanghai Development and Reform Commission, said the service consumption subsidies fit well with the consumption upgrade trend. They can also address different consumers' needs during the peak holiday season, including the upcoming National Day holiday.

Ahead of the consumption incentives announced on Wednesday, Shanghai had announced in early September a 4-billion-yuan trade-in plan for cars, home appliances, as well as home decoration and renovation in an attempt to benefit more consumers.