China’s tourism industry experienced a significant resurgence during the recent Lunar New Year holidays, as domestic travel soared, surpassing pre-COVID levels. Official data released by the Ministry of Culture and Tourism revealed a 47.3% year-on-year increase in tourism revenues, providing a temporary relief to policymakers in the world’s second-largest economy. While the boost in travel spending is encouraging, uncertainties remain regarding the sustainability of this trend amid ongoing challenges.
Domestic Travel Boom
During the eight-day Lunar New Year holidays, which is known as the world’s largest annual migration, tourist attractions across China were flooded with massive crowds. Domestic tourism spending witnessed a remarkable surge of 47.3%, reaching 632.7 billion yuan ($87.96 billion) compared to the same holiday period in 2023. Moreover, these figures also surpassed pre-COVID levels in 2019, with a solid increase of 7.7%.
The number of domestic trips taken during this year’s holiday grew by 34.3% compared to the previous year, totaling a staggering 474 million trips. This figure not only indicates a remarkable recovery but also surpasses the pre-pandemic levels of 2019 by 19%. The average spending per trip during the holiday reached 1,335 yuan, reflecting increased consumer confidence and willingness to spend.
International Travel
While the focus was primarily on domestic travel, China also witnessed a significant increase in international travel during the Lunar New Year holidays. Approximately 13.52 million inbound and outbound trips were recorded, a growth of 2.8 times compared to the same holiday period in the previous year, according to the National Immigration Administration. These numbers illustrate a strong rebound in international travel, indicating a gradual recovery and increasing confidence in global mobility.
Film Industry Success
Film watching has become one of the most popular entertainment activities during the Lunar New Year holidays in China. This year, the country’s box office revenue exceeded 8 billion yuan over the eight-day holiday period, as reported by the China Film Administration. This remarkable achievement marks a new record high for the Chinese film industry and demonstrates the resilience and enthusiasm of Chinese consumers for cinema experiences.
Economic Implications
The resurgence in travel spending during the Lunar New Year holidays provides a much-needed boost to China’s economy. The country has been grappling with various challenges, including a property downturn and sluggish demand. In response, policymakers have implemented measures to stimulate growth, such as interest rate cuts. While signs of deflationary pressures persist, the recent surge in travel spending serves as a positive indicator for economic recovery.
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