Central China’s Hubei Province is granting over 30-million-yuan (about R73 Million) worth of subsides to sustain local cinemas to survive the COVID-19 resurgence and revive businesses.
Summer school holidays are prime time for the film industry. Millions of students tend to flock to cinemas in July and August. But the COVID-19 resurgence this year has made things different for the cinemas.
Movie theaters are among the hardest-hit sectors during the pandemic. Whenever there’s a resurgence of cases, cinemas in medium and high-risk areas are closed. Theaters in low-risk areas have to keep ticket sales below 75 percent of capacity.
Some industry insiders worry the COVID-19 epidemic probably has changed the habits of Chinese movie-goers as they feel safer watching movies at home.
“Since people haven’t been to watch movies in cinemas for a long time, some of their habits and way of thinking are likely to have changed,” said Feng Aina, regional manager of Wanda Cinema, the country’s largest cinema operator.
Nearly all cinemas are under huge financial pressure. To help them tide over the harsh times, authorities in Hubei have launched a series of relief measures this summer. One is to give them subsidies.
The 450 operational cinemas across the province will receive 25 yuan (about R61) per seat per month for the next three months. That will cost a total of 30.14 million yuan.
“We’re very grateful to hear the news from the film administration, it is a timely assistance. It bolsters our confidence in resuming business, stabilizing jobs and expecting a robust recovery of box office revenue in the days to come,” said Zhang Lei, regional manager of Broadway Cinema.
Besides giving subsidies, the authorities also step up preferential tax policies, financial supports and other incentives to help the sector emerge from the pandemic gloom.
“We’re increasing tax reductions and deferring social insurance payments to help out the industry. And we’re holding a variety of activities including concerts to (boost their businesses),” said He Wenzheng, head of the Film Division under the Publicity Department of CPC Hubei Provincial Committee.
The COVID-19 epidemic has certainly had a huge impact on China’s film industry. However, most industry insiders are still optimistic about the future. Government support has aimed to stimulate investment to make more high-quality blockbusters, which can attract more people back to the cinemas.
