The tourism revenues in China experienced a significant surge of 47.3% year-on-year during the eight-day Lunar New Year holidays. This increase was attributed to a domestic travel boom that surpassed the pre-COVID 2019 levels. The holiday, known as the world’s largest annual migration, saw massive crowds at tourist attractions across the country.
Impressive Growth in Domestic Tourism Spending
According to official data from the Ministry of Culture and Tourism, domestic tourism spending during the holiday period jumped to 632.7 billion yuan ($87.96 billion), marking a 47.3% increase from the previous year. Moreover, these figures were also up by 7.7% compared to the pre-pandemic levels of 2019. The number of domestic trips taken during this year’s holiday grew by 34.3% from the previous year, totaling 474 million trips, surpassing the 2019 levels by 19%.
Despite the challenges posed by the pandemic, China witnessed around 13.52 million inbound and outbound trips during the holiday period, marking a substantial increase from the previous year. The total entry-exit trips returned to 90% of the 2019 levels, indicating a strong recovery in international travel. The National Immigration Administration reported a significant growth in travel activities during the holiday.
As film-watching emerged as a popular entertainment activity during the holidays, China’s box office revenue exceeded 8 billion yuan over the eight days, setting a new record high. The China Film Administration reported a substantial increase in revenue, reflecting the strong demand for entertainment among the Chinese population.
Despite the positive boost in tourism revenues, China’s economy continues to face challenges such as a property downturn and sluggish demand. Policymakers have been compelled to cut interest rates to spur growth in the economy, especially with signs of deflationary pressures emerging. The central bank’s decision to leave key policy rates unchanged indicates a careful balancing act to support the economy amidst the evolving economic landscape.
The surge in tourism revenues during the Lunar New Year holidays in China signifies a promising recovery in the travel industry. However, the sustainability of this boost remains uncertain, especially in light of ongoing economic challenges. As China navigates through various obstacles, the tourism sector’s resilience and adaptability will play a crucial role in shaping the country’s economic trajectory in the post-pandemic era.
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