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Businesses benefit from 'gaokao economy'
Published on: 2013-06-07
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altChina's national college entrance exam, the gaokao, is no longer just a test that affects students and their families - it is helping to create booming markets.

Ahead of this year's exam, on Friday and Saturday, hotels near test sites are fully booked, restaurants are offering free drinks and healthy "brain food", online stores are selling out of lucky charms, and parents are swarming to temples to pray - and in many cases make donations - for their children to score high marks.Observers have dubbed the effect "the gaokao economy".

More than 9 million students will take the make-or-break exam this year, more than the population of Sweden. That means millions of anxious parents, who traditionally have never been shy in spending money if they think it will improve the chances of their child doing well.

To avoid wasting valuable study time commuting to and from an exam hall, for example, many families attempt to stay close by, which is good news for hotels and guesthouses.

A search for "gaokao hotels" on Ctrip's online booking service showed not one room near any test site in Beijing is vacant this weekend. Media reports in Shanghai also said some parents are paying as much as 5,000 yuan ($815) a night for five-star hotels.

Businesses are even adopting marketing strategies that target gaokao parents, with hotels promising a "home away from home", while restaurants promote healthy meals to keep youngsters focused.

Beijing eatery Hong Zhuang Yuan, whose name translates as "top-scoring scholar", has been serving "gaokao meals" for years and this year is offering students free mung bean soup.

Health products that promise to boost energy are also selling well in Shanghai. "It's the same every year," said a cashier at a drugstore near the city's Huaihai Road. "During peak times we can sell dozens of bottles of fish oil."

Yet not everyone is happy about the trend. Shanghai student Zhou Mingyang said that in preparation for the exam his parents had given him a host of healthcare products. "I poured most of it away," he said. "It tasted so bad."

While some parents concentrate on food for the brain, others look to food for the soul.

"We get a lot of students and their families at this time of year," said Hou Dongling from Shanghai Confucian Temple. "They come to pray for a good result, as the temple is known for the God of Wisdom. The peak time is usually the weekend before the exam."

Of course, faith and superstition are also big business, one that traders on Taobao - China's largest online marketplace - are capitalizing on.

One Taobao trader, who did not give his name, said this year he has sold more than 500 colorful T-shirts bearing words of encouragement.

Li Chang'an, a professor of public policy at the University of International Business and Economics, said that the gaokao economy has been heating up for the last few years, and predicted that it is unlikely to lose momentum in a short time.

One of the key factors driving the boom, he said, is China's family planning policy, which limits most parents to one child. This, coupled with the growth in personal wealth, means people are willing to spend more on study aids and hotels, all in the name of boosting their child's chances in the gaokao.

"Places at top schools and colleges in China are limited, so the competition is extremely tough," Li said.

Yet instead of putting further pressure on young minds, the professor suggested parents try to relax.

"For a child under a great deal of pressure, if they fail to do well, they may end up blaming themselves for letting down their parents, or even letting down society," Li said. "That could cause psychological trauma in that child".

Sun Feifei, a student counselor at Beijing Sanlitun No 1 Middle School, agreed that parents should not turn up the heat on their children, yet she added that the lucky charms available online may not be so bad a thing.

"Everyone is different," she said. "For some students these items may help relieve their anxiety. Others, though, could see these gifts as a sign their parents have high expectations.

"Generally speaking, the most effective way for parents to help their child relax before the gaokao is to make them feel that they will accept any result," said Sun, who has worked as a counselor for six years.

"Parents should focus on a child's efforts and what he or she has already accomplished at school, rather than put all the emphasis on one exam."

While many companies are cashing in on the national college entrance examination, or gaokao, not everyone is out to make a profit.

In Chongqing, more than 500 taxis will be offering free rides for youngsters taking the exam.

Cheng Zhu, operations director at Chongqing Taxi Co, said the State-owned company has set aside 100 of its 1,000 cabs for gaokao students on Friday and Saturday. Another 20 cabs will be on standby in case of emergencies.

He said booking hotlines were open from May 30 to June 1, adding that the company has been providing the free service for eight years.

Huang Min, who will be among the drivers transporting the students, said he may lose money during the exam, but it is worth it.

"Time is money for cabbies," said the 43-year-old, who earns 150 to 200 yuan ($24-$32) a day. "I may miss the rush hours during the gaokao, but compared with the joy I get from helping students, the money doesn't matter.

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