China’s ‘golden week’ travel spending down 40 per cent from pre-pandemic level, and worse than last year’s
- Local outbreaks of the coronavirus Delta variant across the country scared many consumers into staying home or not travelling as far
- Total number of trips was also down compared with last year’s holiday period, and they plunged by 30 per cent compared with 2019
Travel and holiday spending during China’s just-ended “golden week” national holiday fell against prior years, not just due to travel restrictions triggered by recent coronavirus outbreaks, but because of what industry insiders say is a dwindling desire among consumers to open their wallets amid falling incomes and depreciating property values.
While pandemic outbreaks – and their psychological impact on consumers who fear getting sick – appeared to be the driving force behind the fall in recreational consumption in the week-long holiday that ended on Thursday, many consumers also say they have been spooked by broader weaknesses in China’s economy.
Tina Chen, an operations manager in Guangzhou who usually takes an annual holiday during the golden week, abandoned those plans this year. She said she was concerned by increased taxes and headwinds in the property sector that have fuelled a drop in property prices.
Many Chinese middle-class consumers such as Chen say these concerns outweighed the impact of the pandemic on their willingness to spend.
“My monthly salary has not increased in the past three years, but tax-related charges, such as social insurance contributions and personal income taxes, are rising sharply,” Chen said. “I feel that my income has shrunk a lot this year, and looks even worse ahead.”