Culture, tourism authorities lend helping hand to industry

Hu Min
Billions of yuan in loans will go toward helping Shanghai's tourism companies recover from coronavirus outbreak. Banking partner to help with expedited financing review, dispersal.
Hu Min

Shanghai's cultural and tourism authorities are enhancing financial support to help enterprises recover from the novel coronavirus disease outbreak.

A total of 10 billion yuan (US$1.41 billion) in loans will be distributed to the city's cultural and travel companies, the Shanghai Culture and Tourism Administration said on Monday. 

Shanghai has 1,782 tourism companies, and about 90 percent are small or medium-sized, according to the administration.

The epidemic delivered a heavy blow to the industry, particularly for smaller players who are now facing cash flow challenges amid the resumption of operations, the administration said. 

Travel agencies, hotels, tourist attractions and entertainment venues are some of the worst hit, and they have expressed hope that authorities will help relieve their financial pressure, the administration said. 

In total, 162 culture and tourism companies have expressed demand for credit and loans totaling 2.65 billion yuan, it said. The demand is expected to increase further with more companies resuming operations. 

The loans will be provided by the Shanghai branch of China Construction Bank to assist in the resumption of enterprise operations, the administration said. 

The bank will open a green channel for the handling, review, approval and delivery of loans and ensure a 24-hour response for each application.

Shanghai's tourist companies are also being helped with tax breaks, rent reductions or exemptions, loan interest discounts and training fee subsidies, the administration said.

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