Cultural, tourism firms bank on financial support

More financial support should be given to Chinese cultural and tourism companies so that new technologies can be applied in a wider area and new growth engines can be nurtured, said industry experts on Tuesday.

They made the comments during a conference for the construction, investment and financing of cultural and tourism projects, which was held in Shanghai between Nov 14 and 15.

The Ministry of Culture and Tourism signed strategic cooperation agreements with the Export-Import Bank of China and Agricultural Bank of China at the conference on Tuesday.

Cui Yanmei, deputy general manager of the customer service department of the Export-Import Bank of China, said that the bank will support the export of Chinese cultural products and services, outbound trips and the construction of cultural and tourism demonstration platforms, according to the newly signed agreement.

It will also support the application of information technologies in cultural and tourism industries. Companies will be supported in exploring overseas markets and investing in and building cultural and tourism projects via direct foreign investment, and mergers and acquisitions, which are also part of the agreement, said Cui.

Xing Fengqin, general manager of the agro-related corporate business department at Agricultural Bank of China, said that the bank will focus on granting more credit to cultural and tourism companies, product innovation, digital management in the two industries and building industrial clusters for key sectors based on the new agreement.

The agreements are part of lenders' efforts to address the State Council guideline on the high-quality development of the tourism industry, which was released on Sept 27. While aiming to release more consumption potential, the guideline said that investment in tourism infrastructure should be optimized.

The country's fiscal, financial and investment policies should be better used to revitalize existing tourism projects and assets and broaden financing channels. Financial institutions should be better guided to optimize credit management, enrich credit products, and support the construction and operation of tourism facilities. Scenic projects are encouraged to issue infrastructure real-estate investment trusts, according to the guideline.

Lyu Hao, deputy general manager of the Shanghai Stock Exchange, said during the conference that cultural and tourism companies can make full use of the various tools provided in the capital market including stocks, bonds, funds, derivatives and real estate investment trusts or REITs. In this way, the capital market can play a bigger role in helping companies lower costs, enhance efficiency and raise their recognition by comprehending prices and diversifying risks.

Xu Bo, general manager of China Cultural Investment, said recovering market demand in China has laid the groundwork for investment and financing in the cultural and tourism industries.

According to the Ministry of Culture and Tourism, Chinese consumer spending on domestic trips spiked 114.4 percent year-on-year to 3.69 trillion yuan ($509.1 billion) in the first three quarters. The total number of domestic tourist trips exceeded 3.67 billion in the first nine months, up 75.5 percent year-on-year, recovering to nearly 80 percent of the 2019 level.

Fang Shizhong, head of the Shanghai municipal administration of culture and tourism, said that cultural and tourism industries are the best platforms to apply emerging technologies, such as blockchain and AI large language models.