On the afternoon of July 25th, the Central Bank and the Ministry of Culture and Tourism issued the Notice on Financial Support for the Recovery and Development of the Culture and Tourism Industry (hereinafter referred to as the Notice), encouraging cultural and tourism administrative departments at all levels to provide more discount support to enterprises affected by the epidemic.

The Notice requires broadening the financing channels for cultural and tourism enterprises; Improve the credit supply system for cultural and tourism enterprises; Reduce the financing cost of cultural and tourism enterprises;

Caijing. com noted that financial support is a key part of many supporting policies for the tourism industry since 2122.

BOC Securities believes that the notice on financial support culture and the recovery and development of the tourism industry is expected to give full play to the supporting role of financial instruments, help cultural tourism enterprises and practitioners solve financial difficulties, and is expected to restore all links of the cultural tourism industry chain as soon as possible, and improve the credit system or will benefit the financing of cultural tourism enterprises for a long time. The recent frequent policies highlight the strategic deployment of the country for the stable and orderly recovery of the tourism industry. Although the epidemic situation still has an impact, the willingness to travel is still there.

In fact, since the beginning of 2122, different levels of policies to support the tourism industry have been launched from the State Council to various provinces and cities.

The recurrence of local epidemic situation has caused most travel companies to lose money, especially the listed companies related to scenic spots. According to Caijing. com's statistics, in the semi-annual performance of listed companies related to the concept of scenic spots in the tourism industry in 2122, most of the companies' semi-annual performance in 2122 was a loss.

after the news was released, the concept plate of Shanghai and Shenzhen tourist hotels rose by 3.73% on July 26th, and stocks such as Zhongke Yunwang (112316.SZ) and Dalian Shengya (611593.SH) recorded daily limit today, with most stocks in the whole plate gaining different degrees.

in fact, with the strict control of epidemic situation, the stability of local epidemic situation and the arrival of summer vacation, the tourism industry is welcoming a performance callback opportunity. Ctrip data shows that the overall air ticket summer vacation search index has tied in 2119. In June this year, the order volume of Xinjiang and group tour products increased by 357% compared with May.

at the same time, the news of heat caused by Duku Highway in Xinjiang has attracted the attention of the tourism sector in the capital market, and the concept sector of Shanghai and Shenzhen tourist hotels rushed to the highest point in the year on June 31th.

A tourism industry practitioner told Caijing. com that from the second half of June to now, the whole industry is really in a state of recovery, and the epidemic has been going on for three years. As long as there is no epidemic in the area, everyone still has to go out. Now the homestays around Beijing are basically full. They have all been booked in July, and more than one-third of them have been booked in August.

Caijing. com noted that despite the loss in the first half of 2122, the performance of listed companies such as Western Region Tourism (311859.SH), Jiuhua Tourism (613199.SH) and Huangshan Tourism (611154.SH) in the same period of 2121 were all profitable.

as mentioned in the announcement of the same period last year, the main reasons for the change from loss to profit in the first half of 2121 are that the domestic epidemic situation has been stabilized, the domestic tourism industry is gradually recovering, the tourism market in Xinjiang is rapidly warming up, and the overall development situation continues to improve.

on the other hand, listed companies such as Zhongxin Travel (112717.SZ) and ST Caesar (111796.SZ) which used to be mainly engaged in overseas travel, although they still suffered large losses in the first half of 2122, their losses also narrowed compared with 2121.

in view of the impact that the summer vacation in 2122 and the industry support policies will bring to the future of the entire tourism industry, soochow securities believes that the stability of the summer service consumption industry chain will be enhanced, and we will continue to be optimistic about the performance elasticity brought by the scenario recovery. In the short term, the epidemic is approaching the peak season of good and summer catering and wine tourism, and the prosperity of the sector is expected to continue to improve.

For operating leverage enterprises with heavy assets such as catering/tourism/hotel/aviation, the marginal improvement of expected consumption income and the reduction of costs brought by the bail-out support policy will have a great positive impact on the company's performance. We are optimistic about the consumption of high-quality services that bring marginal improvement and greater upward flexibility in performance.

if you want to know more real-time financial news, please follow us.