China's Holiday Hustle: Tourism Surge Masks Economic Caution
Copyright Source：
Yueke
Mon, May 6, 2024
Discover the pulse of China's ascent and its global ramifications with CNN's exclusive Meanwhile in China newsletter.
Amidst China's recent Labor Day festivities, a notable uptick in tourism was observed, yet there's a cautionary tale hidden within the numbers: travelers tightened their purse strings, indicating a persisting sluggishness in the world's second-largest economy.
According to the Ministry of Culture and Tourism, a staggering 295 million journeys were made within mainland China during the just-concluded five-day holiday, marking a 28% surge compared to the four-day Labor Day break in 2019. This surge, however, was met with restrained spending.
Labor Day tourism revenue reached 166.89 billion yuan ($23.6 billion), a mere 13.5% increase from 2019 levels. Delving deeper, the average spending per trip dropped by 6% to 565.73 yuan ($80), signaling a frugality unseen in years past.
Amidst China's recent Labor Day festivities, a notable uptick in tourism was observed, yet there's a cautionary tale hidden within the numbers: travelers tightened their purse strings, indicating a persisting sluggishness in the world's second-largest economy.
According to the Ministry of Culture and Tourism, a staggering 295 million journeys were made within mainland China during the just-concluded five-day holiday, marking a 28% surge compared to the four-day Labor Day break in 2019. This surge, however, was met with restrained spending.
Labor Day tourism revenue reached 166.89 billion yuan ($23.6 billion), a mere 13.5% increase from 2019 levels. Delving deeper, the average spending per trip dropped by 6% to 565.73 yuan ($80), signaling a frugality unseen in years past.
PHOTO: Yueke
Similar restraint was witnessed at China's cinemas. Despite a noteworthy attendance of 37.77 million during the holiday, surpassing 2019 figures, ticket sales mirrored those of 2019 at 1.527 billion yuan ($215.7 million).
Economic headwinds, including a historic downturn in real estate—a major contributor to household wealth—have dented consumer sentiment. A recent report by TD Securities highlighted the wavering consumer confidence,evident in subdued retail spending momentum and a sharp decline in April's services PMI.
Economic headwinds, including a historic downturn in real estate—a major contributor to household wealth—have dented consumer sentiment. A recent report by TD Securities highlighted the wavering consumer confidence,evident in subdued retail spending momentum and a sharp decline in April's services PMI.
PHOTO: Yueke
The latest data paints a sobering picture: April's Caixin/S&P Global services PMI slipped to 52.5 from the previous month's 52.7, while the government's services sub-index plummeted to 50.3 in April, the lowest since January.
Retail sales growth decelerated to 3.1% in March from 5.5% in February, reflecting a cautious approach by consumers. Additionally, consumer inflation remained subdued at 0.1% in March, down from 0.7% in February, marking the first increase in six months.
Retail sales growth decelerated to 3.1% in March from 5.5% in February, reflecting a cautious approach by consumers. Additionally, consumer inflation remained subdued at 0.1% in March, down from 0.7% in February, marking the first increase in six months.
