Beijing’s decision to extend this year’s Labour Day holiday from 24 hours to 96 achieved the desired effect of increasing consumer spending, according to official figures. Between Wednesday and Saturday, revenue from tourism rose 16.1 per cent year on year to 117.7 billion yuan (US$17.5 billion), while the number of “tourists” rose 13.7 per cent to 195 million, the Ministry of Culture and Tourism said on its website. Also, cinema box office revenue over the period soared to more than 1.5 billion yuan (US$222 million) – from about 990 million yuan (US$147 million) in 2018, although the holiday came just a week after the release of Avengers: Endgame , the final instalment in the hugely popular Marvel Studios series. China’s government announced the extended holiday late last month, and the move encouraged people to spend, the ministry said. Over the break, about 38 per cent of tourists spent between 501 yuan (US$74) and 1,000 yuan, compared with just 36.8 per cent whose spending was in that range during last month’s three-day Ching Ming Festival. Similarly, the average length of the breaks taken by people over the Labour Day holiday rose by 9.5 per cent to 2.25 days. Wu Qi, a senior fellow at the Pangoal Institution, a think tank in Beijing, said the government’s decision to extend the holiday was partly a response to continued downward economic pressures. “Consumption is vital to building a strong domestic market, as the impact of infrastructure investment on growth is weakening,” he said. “Also, May is traditionally high season for tourism and consumer spending.” Consumption is vital to building a strong domestic market, as the impact of infrastructure investment on growth is weakening. Wu Qi Despite the possible costs of the longer holiday – such as disruptions to production and overcrowded transport networks – Wu said the government was likely to continue making such adjustments to support the economy. China has for several years been trying to move away from its investment-led model – which for decades produced double-digit growth and helped it become the world’s second-largest economy – towards one driven by consumption. The transition became even more urgent after last summer when the United States began a tariff war with China that has weighed heavily on its economic growth. At the Central Economic Work Conference in December – an annual gathering at which senior officials decide an outline for the coming year’s economic policies – China’s leaders made it a priority to boost the domestic market to counter the effects of the trade war. Consumption has consolidated its basic role in economic growth, but its potential has not yet been fully realised. Mao Shengyong, NBS According to the National Bureau of Statistics (NBS), consumption accounted for 65.1 per cent of the country’s stronger-than-expected 6.4 per cent growth in the first quarter of the year, although retail sales grew only by a modest 8.7 per cent in March. As a result, the government said it was considering introducing a range of subsidies to stimulate demand for cars and home appliances but the plan has yet to be confirmed. Beijing has also been keen to promote the consumption of services, such as tourism and entertainment. These accounted for 47.7 per cent of total consumption in the first three months of the year, up from 46.3 per cent a year earlier. “Consumption has consolidated its basic role in economic growth, but its potential has not yet been fully realised,” NBS spokesman Mao Shengyong said last month. “The supply of high-quality goods needs to catch up, as there is still much room for household consumption.”