China Encourages 'Trunk Economy' to Lift Farmers' Incomes
Yicai Global
/SOURCE : Yicai
China Encourages 'Trunk Economy' to Lift Farmers' Incomes

(Yicai Global) Oct. 17 -- Along with the emergence of agritourism, as well as the transformation of urban residents' tourist consumption patterns, the so-called 'trunk economy' is turning into a force driving the growth of farmers' incomes, and is also a vital local government poverty alleviation and development measure.

In an interview with Yicai Global on Oct. 16, Mr. Cheng Jun, general manager of Hangzhou Transfar Science & Technology Service Ltd., a subsidiary of Transfar Group Co. [SHE:002010] said that, the 'trunk action' or 'trunk economy' is a vivid metaphor for agritourism, and could be interpreted as the trunks of all private cars traveling to rural areas being full upon departure for their destination, enabling farmers to earn income over and above that from farming.

Mr. Cheng also said the proposal to develop the 'trunk economy' is relevant to the features of the small-scale peasant economy in East Asia. Agritourism has already emerged in Japan, South Korea and Taiwan, and their experiences could serve as a sound reference for China.

Prof. Fan Ming from Henan University of Economics and Law said agritourism comes as a result of economic development. He told Yicai Global that, when income grows to a certain level, and with necessary transport such as sedan cars, the demand for outings to urban outskirts to enjoy the natural environment emerges. The improvement of tourism infrastructure in rural areas -- i.e. transportation and farm accommodations and catering -- enables these demands to be met.

Mr. Cheng noted that the service chain behind rural tourism also plays a considerable role. For example, travel agencies now need to develop rural excursion itineraries. Furthermore, farms can also offer services like homestays and parent-child activities to expand their business models.

On Oct. 14, an Executive Meeting of the State Council issued requirements for promoting effective supply in fields like tourism and culture and implementing the 'trunk economy' for rural tourism.

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