Chinese tourists hit the road in greater numbers during the recent five-day Labor Day holiday but kept a tight rein on their wallets, reflecting still weak sentiment in the country. the second largest economy in the world.
Travelers took 28.2% more trips, but their spending only increased by 13.5% compared to the 2019 break, the Ministry of Culture and Tourism said in a statement. statement Monday. That translates to an 11.5% drop in spending for each traveler over the holiday ending Sunday, according to banks including Société Générale, Goldman Sachs Group Inc. and Citigroup Inc.
“Per capita spending has slowed and is once again below the pre-pandemic level, partly due to increased tourist flows to lower-tier cities and suggesting a continued deterioration in consumption,” said the Goldman economists, including Lisheng Wang, in a note Monday evening, adding that more politics. support is needed to support the recovery of the services sector. The 2019 vacation was one day shorter.
These figures add to evidence showing that Chinese households remain careful with consumption despite a recent rebound in economic growth driven by a recovery in industrial activity. Fewer than one in four residents wanted to spend more, while a growing share of the urban population wanted to save in the first quarter, according to a study. investigation by the People’s Bank of China.
Travelers made a total of 20.7 million train trips across the country on May 1, a new record for a single day on record, according to state broadcaster China Central Television. reported Sunday evening, citing government data.
The holiday season also showed a change in how Chinese travelers are spending since the country emerged from pandemic lockdown. While big cities like Beijing and Shanghai remain popular, many others have opted for cheaper destinations and smaller towns, online travel agency Trip.com Group said on Sunday. statement.
“The lower tier market allowed tourists to have a relaxing vacation, and they got better value for money as accommodation and food costs soared in tier 1 and 2 cities during the break,” said Wang Yalei, an analyst at Trip.com. said in the release.
Social media accounts promoting tourism in small towns have flourished as tourists look for cheaper, off the beaten track attractions. The expansion of China’s high-speed rail network and more cars have also allowed travelers to get to more places within hours.
Bookings for hotels and tourist sites in Tier 3 or lower cities in the northwest and west of the country more than doubled during the break compared to the same period last year, data shows published by Tongcheng Travel Holdings, another tourism agency.
Inbound and outbound tourism also gained momentum during the holidays as China re-established more air routes and extended visa waiver provisions to more countries, the Ministry of Culture and Tourism said. Chinese travelers made 1.9 million trips abroad while 1.8 million visitors entered the country, it said, without providing figures for last year.
The United States, Australia and the United Kingdom were the top long-haul destinations, while Hong Kong, Macau, Southeast Asia, Japan and South Korea were the most popular for travel short distance, according to Trip.com. Middle Eastern countries, including Oman, Saudi Arabia and Kuwait, saw bookings increase by more than 300%, according to the report.
