"Take a Vacation and Spend Money": China Implements Paid Leave System Abruptly

Despite Recent Typhoon Damage, Vital Efforts to Revitalize Tourism

China has decided to introduce paid leave and flexible working hours as part of efforts to boost domestic consumption. The focus is on revitalizing the nationwide tourism market, which was hit by a heatwave followed by heavy rains this summer.

On the 31st, the National Development and Reform Commission (NDRC), China's macroeconomic authority, announced "20 measures to restore and expand consumption," stating that paid leave will be fully implemented and flexible working hours encouraged. Currently, paid leave is only implemented in some state-owned enterprises and large companies, but the plan is to extend this to small and medium-sized private enterprises as well.

[Image source=EPA Yonhap News]

Along with this, the policy aims to activate flexible working hours to encourage workers to take vacations. Additionally, improvements to tourism infrastructure, reductions in entrance fees to tourist sites, and free access during off-peak seasons are also recommended. Discounted tickets that bundle visits to famous scenic spots will be sold, and the nighttime economy, including night markets and night views, will be supported. Museums and amusement parks will extend their opening hours beyond the current schedule, and 24-hour overnight operations will be allowed where possible.

Furthermore, local food festivals will be held, and various cultural, sports, and experiential events will be promoted. The government will also provide financial support to key beneficiary sectors such as accommodation, dining, and tourism. To improve liquidity, measures include easing credit card interest rates and repayment periods, as well as increasing credit limits.

China's economic growth recovery has been delayed due to disappointing consumption and the global economic downturn. China's GDP growth rate for the second quarter recorded 6.3% year-on-year, significantly below market expectations of 7.0-7.3%. Retail sales last month increased by 3.1% year-on-year, falling short of the forecast of 3.2%. Although the government has expressed intentions to support the private sector and attract foreign investors, it has not presented large-scale stimulus measures.

Recently, abnormal weather has also hindered China's economic recovery. According to Chinese media such as China.com on the 31st, Typhoon 'Eagle' (Doksuri), the fifth typhoon to hit China this year, brought heavy rains to northern regions including Beijing, the northeast, central inland, and southern areas. Especially since various events targeting the summer vacation season, such as beer festivals, were being held across China, the heavy rains have made it difficult to expect significant consumption stimulation effects related to these events.

Due to weather issues, out of 1,119 flights scheduled for takeoff and landing at Beijing Capital International Airport on the 30th, 52 flights were canceled as of 3 p.m. Meanwhile, 517 flights operated as planned. Some trains departing from or passing through Beijing West Station and Beijing Fengtai Station were also canceled. The beer festival scheduled to be held in Kaifeng, Henan Province, was temporarily canceled, and night tours in Zhengzhou Dengfeng were suspended.

This content was produced with the assistance of AI translation services.