CHINA’S consumption market has shown multiple positive signs as the weeklong National Day holiday period is about to start on Tuesday, with industry insiders expecting to see bustling scenes across different sectors, ranging from tourism, transport, movie-going and catering.
As consumption during Golden Week traditionally serves as a barometer for the economy, observers said that the spending surge is likely to send an upbeat signal on the potential of China’s consumption market, which remains a key economic driver.
The consumption rebound, coupled with a slew of pro-growth policies released in recent days, would also inject new impetus to consolidate the recovery of the world’s second-largest economy in the fourth quarter, according to analysts.
Travel boom
Nationwide, Chinese tourists have been in “countdown” mode, eagerly packing their bags in anticipation of the weeklong travel adventure during the holiday period. Reservations for hotels and tickets of popular tourist sites for the upcoming Golden Week has soared significantly.
In addition to traditional popular tourism destinations like Beijing and Shanghai, some third- and fourth-tier cities have also been gaining popularity among tourists for their iconic cultural and culinary attractions.
Outbound tourism is also foreseen to continue rebounding during Golden Week. Many of the popular travel products involving destinations in Europe and Africa sold out more than a month before the holidays, data from travel platform Fliggy shows, while flight bookings to destinations such as Egypt, Turkey, Hungary and Kenya have increased more than threefold compared to the same period in 2023.
Transportation networks of Chinese expressways, railways and civil aviation are also expected to embrace a surge during the holidays.
It is forecasted that the country’s railway will handle 175 million passenger trips during the travel rush period starting from Sunday and lasting until October 8.
During the holidays, the Beijing Capital International Airport is expected to handle 1.32 million passenger trips, while the annual passenger throughput should exceed 50 million during this National Day holiday period. The number of inbound and outbound passengers at the Beijing Daxing International Airport is expected to reach 105,000, an increase of nearly 60 percent compared with the same period in 2023, the Global Times learned from the airports’ operators.
The transport sector overall is expected to handle 1.94 billion passenger trips nationwide during the holidays, with a daily average of 277 million trips. The daily average is expected to rise 0.7 percent year on year.
“The average payment price for domestic flights has been reduced by 20 percent compared with last year, while the average price of mid-to-high-end hotels also dropped by 20 percent year on year,” according to a report qunar.com.
Economic gauge
With regard to the movie market, the total pre-sale box office for new releases during the holidays had reached over 100 million yuan ($14.26 million) on Sunday, indicating a potential box-office rebound following a weaker-than-expected summer season.
Meanwhile, multiple localities have been rolling out cultural and tourism activities, among other measures, to further spur a consumption boom during the holidays.
On Saturday, Shanghai began distributing consumption coupons worth of 500 million yuan, offering residents discounts on a wide range of purchases, from hotels and movies to restaurants and sporting events.
“Ahead of the National Day holidays, the Chinese government released a bunch of supportive policies that have largely stabilized and lifted up social expectations,” said Beijing-based economist Tian Yun.
The strength of China’s holiday consumption rebound may also shed light on the potential and resilience of the country’s consumption, which is a key engine driving economic recovery momentum, analysts said.
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