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Spend on Services Rises in Big Cities
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New statistics show that urban Chinese are spending increasing amounts of their incomes on services and leisure activities.

Beijing residents spent one-third of their incomes on cultural and recreational activities in 2005 which is up 8 percent on 2004, according to figures produced by Beijing Municipal Statistics Bureau.

"This year people are going to spend proportionately more on services," said Shi Kangning from the China Association of Social Workers.

For example, Beijingers will spend 3 billion yuan (US$370 million) on weddings alone, Shi told China Daily.

According to Shanghai Media and Entertainment Group, revenues produced by the city's entertainment sector reached 4.8 billion yuan (US$600 million) in 2005, up 30 percent from the year before.

Wu Jianying, marketing manager of the Alexander Group, a chain of fitness centers with outlets in Shanghai, Beijing and Taipei said, "Those from Shanghai, especially white-collar workers who earn above the average, are pursuing life of a better quality."

After a successful first venture which started in 2002 the group are considering opening a second outlet in the city. "We have a strong belief that Shanghai has huge potential for high quality service consumption," Wu said.

Zhou Juemin, manager of a domestic help company under the Shanghai Women's Federation told China Daily they were offering more "considerate" services to properly cater for consumer needs.

"When we offer home relocation moving the furniture is just part of our job," she said. "We also visit the neighbors and send them cakes to help our clients to better adapt to a new neighborhood," she said.

A survey conducted by Guangzhou Urban Survey and Research Center showed the average urban family spent 5,067 yuan (US$634) "buying different kinds of services" last year.

The figure represented at least a 10 percent growth from the year before. It also accounted for more than 35 percent of a family's total income in 2005 compared with less than 10 percent in 2000.

(China Daily June 5, 2006)

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