China preps for tourism boom on May Day holiday as early bookings rocket past pre-pandemic levels

Preliminary figures for this year’s May Day holiday shows a tourism rush is in the making, welcome news for China as it looks to stoke consumption
Travel sector expects activity to top pre-pandemic numbers, solidifying its role as a reliable driver of growth as other areas lag

China's economic recovery

Mia Nulimaimaiti

Published: 6:00am, 18 Apr 2024

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China is expected to see a robust wave of tourism during the coming May Day holiday, with the sector expected to seize the opportunity to consolidate its recovery well above pre-pandemic levels and invigorate the country’s economy through a heavy bout of consumption.

Hong Kong is likely to remain one of the more favoured destinations for travellers leaving mainland China during the period – also known as Labour Day, scheduled to last from May 1 to 5 – and Southeast Asia stands to benefit most from any resurgence, research from tourism platforms and statements from analysts showed.

Since last week, domestic airfare orders for the holiday surged 21 per cent compared to last year according to Chinese ticketer Umetrip – a 41 per cent increase over the figure from 2019.

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Hotel orders for smaller county-level cities on Chinese travel platform Ctrip rose 68 per cent year on year, while purchases of tickets for scenic areas in those towns were up 151 per cent during the same period.

The volume of visa fee charges for outbound trips during the May Day holiday has also exceeded the same period in 2019, according to a report released by Ctrip on Tuesday.

“Overall, it is expected that this year’s May Day holiday tourism will see a steady increase based on last year’s high enthusiasm,” Ctrip said.

Hong Kong remains the first choice for mainland outbound travellers due to its accessibility via multiple points of entry and a reputation for security, according to Lin Huanjie, dean of the Institute for Theme Park Studies in China.

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“Tourists can return to the mainland after completing a one-day tour, which is very important for those with low travel budgets,” Lin said.

Despite the rise of online shopping and the establishment of the Shanghai Disney Resort – changes that have reduced the city’s unique appeal for mainland travellers – Lin said Hong Kong continues to be a favoured destination due to its rich array of cuisines and cultural offerings.

Tourism has stood out in the country’s overall consumption mix as a driver of rapid growth, a contrast to other areas like retail sales which have been slower to revive. Consumption is viewed as essential to fuel the country’s post-pandemic recovery, which has been hampered by a prolonged property crisis and low enthusiasm in the private sector.

Pandemic scars are fading among travellers

Lin Huanjie

Last year, the mainland saw 4.891 billion domestic trips, 81.4 per cent of 2019’s total. Tourists also tightened their wallets, with their 4.91 trillion yuan (US$678.1 billion) in spending reaching only 74 per cent of the 2019 level according to the mainland’s Ministry of Culture and Tourism.

“Fast pickups during the Lunar New Year and Ching Ming Festival Festival suggest the market will see strong growth in the upcoming May Day holiday,” Lin said.

“Pandemic scars are fading among travellers. Market data shows tourism has rebounded to pre-pandemic levels, and we expect revenues to surpass those of 2019 this year.”

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During February’s China International Consumer Products Expo, held in the southern island province of Hainan, mainland travel conglomerate Fosun Tourism Group said the industry has fully rebounded to pre-pandemic levels, and orders for May Day are surging.

“The coming two weeks are the most critical time for orders, and we are optimistic about the outlook for the May Day holiday,” said company co-president Minglong Cao.

Tourism revenues in Southeast Asia and the Asia-Pacific region are set to hit record highs as outbound tourism recovers, Cao told Shanghai-based media outlet The Paper.

Beijing has rolled out measures to attract more visitors from overseas, including expanding the list of countries whose nationals can visit without a visa and broadening the scope of payment platforms to include international credit cards. Permanent visa-free travel arrangements with Thailand, Malaysia and Singapore have also added to the country’s appeal as a tourism destination.

“It will take at least two years for [mainland] China’s outbound tourism to return to pre-pandemic levels, since three years of turbulence have constrained residential incomes and they will inevitably reduce their spending on non-essential items,” Lin said.

These factors, along with a higher exchange rate with the US dollar, mean inbound tourism is set to recover faster, Lin said.

Data released in March by the National Immigration Administration showed inbound travellers reached 2,945,000 in the first two months, 2.3 times the figure from the previous year and 41.5 per cent of pre-pandemic levels.