Daily Management Review

China Spent More On Travel Than Before The COVID-19 Pandemic During The Lunar New Year Vacations


China Spent More On Travel Than Before The COVID-19 Pandemic During The Lunar New Year Vacations
According to official data, China's tourism earnings for the Lunar New Year holidays ending on Saturday exceeded 2019 levels and increased by 47.3% year over year due to a surge in internal travel during an extended break.
The second-largest economy in the world has been dealing with deflationary risks because to sluggish consumer demand, so the data may provide policymakers with some short-term respite. However, the sustainability of the tourism bump is questionable, and the revenue generated by each trip is still less than it was prior to the pandemic.
Known as the largest annual migration in the globe, huge masses flocked to tourist destinations all around the nation during this vacation.
Compared to the same holiday period in 2023, domestic tourism spending increased by 47.3% to 632.7 billion yuan ($87.96 billion) , according to data from the Ministry of Culture and Tourism.
Over the holiday, 474 million domestic journeys were made, an increase of 34.3% from the previous year.
Based on data from the ministry, domestic tourist spending surged 7.7% and domestic trips increased 19% compared to the 2019 Lunar New Year holiday, which was before the COVID-19 pandemic hit the nation.
However, the 2024 holiday was longer than the 2019 Lunar New Year break by one day, lasting eight days instead of seven.
The ministry did not provide a breakdown of the amount spent on tourism per trip; nevertheless, computations based on ministry data show that over the holiday season this year, the average spending per trip was 1,335 yuan, a 9.5% decrease from 1,475 yuan per trip in 2019.
While domestic tourism data over the Lunar New Year holiday improved from the New Year's holiday earlier this year and the National Day Golden Week in October, Goldman Sachs analysts noted in a note on Sunday that tourism revenue per head fell and remained below the pre-pandemic level.
"Consumption downgrading is still widely seen," they concluded based on this.
Known by another name, the Spring Festival, is the time of year when hundreds of millions of people travel back to their hometowns to be with their families by car, train, or air.
According to the National Immigration Administration, China saw 13.52 million inward and outbound international journeys throughout the holiday, which is 2.8 times more than during the same period previous year.
The administration reports that throughout the holiday, the total number of entry-exit trips reached 90% of the levels recorded in 2019.
According to the China Film Administration, the country's box office earnings for the eight days surpassed 8 billion yuan ($1.11 billion), setting a new record. Watching films has become one of the most popular holiday recreational activities.
Since last year, the economy has faced several difficulties, such as a slump in the housing market and weak demand. As a result, officials have had to lower interest rates in order to boost development, even though many industrialised nations were concentrating on bringing down persistently high inflation.
China's central bank kept a key policy rate steady on Sunday while rolling over maturing medium-term loans, part of a difficult balancing act by officials to boost the economy at a time when signals of deflationary pressures demand for greater stimulus measures.