China’s Lunar New Year travel surge to boost economy, but property market and private firms remain top priority

A record high 9 billion trips are expected to be made within China during the annual 40-day ‘chun yun’ travel period, which starts on Friday

But economists say China needs to focus on solving its ongoing property market crisis and helping private firms to ensure economic growth in 2024

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A record high 9 billion trips are expected to be made within China during the annual 40-day “chun yun” travel period, the Ministry of Transport said last week. Photo: Xinhua

Published: 2:30pm, 25 Jan 2024Updated: 4:57pm, 25 Jan 2024

From Friday, billions of Chinese are expected to join the world’s largest human migration, which is set to be the biggest ever as China embraces the first Lunar New Year free from the shackles of the coronavirus.

A record high 9 billion trips are expected to be made within China during the annual 40-day chun yun travel period, the Ministry of Transport said last week, with family reunions, sightseeing and leisure activities on the agenda.

But while official figures suggest a robust rebound in transport, and after catering and hotels were both a major contributor to China’s upbeat 5.2 per cent growth rate in 2023, these bright spots are seen only to be short-term solutions and not enough to spur an entire year’s growth.

And economists said China needs to focus on solving its ongoing property market crisis and helping private firms to ensure similar expansion in 2024 as pent-up demand fades.

After a fall of 2.3 per cent in 2022 due to frequent lockdowns under China’s zero-Covid policy, China’s accommodation and catering industry surged by 14.5 year on year in 2023, becoming a major gross domestic product growth (GDP) driver, the National Bureau of Statistics said last week.