China holiday spending improves from May, but still a third below last year’s ‘golden week’

China reported tourism revenue of 312 billion yuan (US$45.9 billion) over the first half of the ‘golden week’ holiday, a drop of 31 per cent from last year

Although consumer spending has recovered from the height of the coronavirus, weak consumption continues to plague the world’s second biggest economy

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Huge crowds were seen at popular tourist spots in China’s major cities over the first four days of the ‘golden week’ holiday. Photo: EPA-EFE

Published: 2:31pm, 5 Oct 2020Updated: 11:00pm, 5 Oct 2020

China’s consumer spending has recovered from the worst levels seen during the height of the coronavirus outbreak this spring but is still far below normal, as tourist spending in the first half of the “golden week” holiday plunged by nearly a third from the same period last year.

China’s Ministry of Culture and Tourism said on Sunday that 425 million Chinese hit the road from Thursday to Sunday, the first four days of the eight-day national holiday, a drop from 542 million in the same period last year.

Tourism revenue over the period was 312 billion yuan (US$45.9 billion), a drop of 31 per cent from the first four days of the holiday last year, official data showed.

The fact that fewer Chinese people were travelling – and that the average spending per tourist dropped by 12 per cent – showcased continued weak consumption in the world’s second biggest economy, posing a challenge to Beijing’s new dual circulation economic strategy of relying more on domestic demand for growth.

This year’s National Day holiday overlaps with the Mid-Autumn Festival, which is traditionally a time for family reunions, extending the break to eight days from the usual seven.

With the coronavirus still raging in the United States and Europe, Chinese have had few options for overseas holidays, with many opting to travel domestically instead.