BEIJING: China’s tourism sector has made a remarkable recovery, surpassing pre-pandemic levels during an eight-day national holiday, providing a temporary boost to the nation’s economy. The Chinese government reported tourism revenues reaching approximately 753 billion yuan ($103 billion) during the combined Mid-Autumn Festival and National Day holiday period that concluded on Friday. This figure represented a 1.5% increase compared to 2019 and a substantial 130% surge compared to the previous year, when the nation grappled with stringent pandemic restrictions.
China’s enduring “zero-COVID” policy, enforced until December of the preceding year, resulted in prolonged lockdowns and restrictions. While the lifting of restrictions was anticipated to spark a surge in consumer spending, this anticipated boom has yet to materialize. Economic caution persists among many Chinese citizens, influenced by an ongoing real estate crisis and soaring youth unemployment exceeding 20%.
During the holiday period, planes and high-speed trains were in high demand, reflecting a surge in domestic travel. The tourism ministry disclosed an impressive figure of 826 million domestic trips made, marking a 4.1% increase from 2019 and a substantial 71.3% leap from the previous year.
Domestic tourism benefited from a slower recovery in international travel, as people opted for domestic travel due to continued uncertainties related to the pandemic. International flight levels to and from China remain below pre-pandemic standards, with reports of overseas incidents, such as crime and scams, possibly contributing to some hesitancy in venturing outside the country.
China’s border authorities processed a significant 11.8 million entries and exits during the recent holiday, nearly tripling the figures from the previous year when travelers entering China were subjected to mandatory quarantine. However, this total represented only 85% of the levels recorded in 2019, as per the National Immigration Administration.
Booking agency Trip.com reported a notable surge in outbound travel volume during the holiday, exceeding figures from 2022 by over eight times. Preferred destinations included Thailand, Singapore, Malaysia, and South Korea. Additionally, travel to more distant countries, such as Switzerland, Spain, Turkey, the United Kingdom, and France, witnessed growth compared to the last major national holiday in May.
China’s economic landscape has exhibited encouraging signs of emergence from the post-pandemic downturn. Recent data revealed the first expansion in factory activity in six months, hinting at a potentially rejuvenated economy on the horizon.
