One of the most important lessons drawn from the financial crisis is that we must change the economic growth mode from one reliant on exports to one reliant on domestic demand.

Consumption Coupons: New Attempt to Expand Domestic Demand

By staff reporter LIU QIONG

    THE global financial crisis has exerted pressure on exports and employment, and has influenced Chinese people's income level and will to consume. To increase domestic demand, some local governments have tried to stimulate consumption through issuing consumption coupons.

In February 2009, the first batch of rural tourism consumption coupons was issued to Nanjing inhabitants.

Stimulating Consumption by Issuing Coupons

    On March 7 more than 10,000 tourists visited Fujiabian Sci-tech Garden in Lishui County, Nanjing City, Jiangsu Province, which is a bio-agricultural tourist destination. This brought the garden an income of RMB 200,000, an increase of 30 percent over the same period of 2008. The garden received RMB 10,000 worth of consumption coupons, a result beyond the expectation of general manager Li Baijian.

    The garden benefited from the Nanjing government's issuing of Nanjing rural tourism consumption coupons in February through a random lottery. The lucky winners each received a coupon worth RMB 100.

    To promote the rural tourism market, the Nanjing municipal government earmarked RMB 20 million for rural tourism consumption coupons to be issued among inhabitants across four months. These coupons can be used at 37 tourist destinations. According to initial government estimates, the RMB 20 million-worth of coupons will generate consumption of RMB 200 million.

    The issuing of consumption coupons is not just restricted to Nanjing. Before the Spring Festival, Hangzhou City in Zhejiang Province issued consumption coupons worth RMB 200 million. Wang Guoping, top leader of Hangzhou, said, "The most important task at present is promoting consumption. The consumption coupons have benefited 1.32 million people. Practice has shown that this is a good move." On February 17, Wang Guoping said that Hangzhou would again issue consumption coupons worth RMB 1 billion, in areas including tourism, training and education. Meanwhile, the government would also issue consumption coupons that Hangzhou inhabitants can voluntarily purchase.

    Hangzhou's issuance of consumption coupons has won support from the Ministry of Commerce. Jiang Zengwei, deputy minister of Commerce, said that the coupons have promoted consumption. According to statistics, RMB 1-worth of coupons can generate consumption worth RMB 2.06.

    This affirmation has aroused the enthusiasm of various localities to issue consumption coupons. Since then, Jiangsu, Hunan, Sichuan and Shandong provinces have followed suit, issuing consumption coupons worth over RMB 2 million.