Splashing out: Chinese Lunar New Year spending bucks growth slowdown: UnionPay
Mainland consumers splashed out at record levels over the Lunar New Year holiday, defying a nationwide slowdown in economic growth, according to state-backed card issuer and payment processor UnionPay.
UnionPay said on Sunday that mainlanders used its debit and credit cards to make 307 million transactions, spending a combined 312.1 billion yuan (HK$371.3 billion) during the week-long break starting February 7.
That added up to a 31 per cent increase in spending compared to the Lunar New Year holiday last year, raising hopes for the mainland’s efforts to shift its economic balance away from exports and towards greater reliance on services and consumption.
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Spending on consumer goods remained strong, coming in at more than 100 billion yuan.
About half of the spending in this sector was in supermarkets, shops selling household appliances, and department stores, while restaurant receipts rose by 6 per cent to 5 billion yuan, according to UnionPay.
The Ministry of Commerce said on Sunday that retailers and restaurants posted revenue of 754 billion yuan during the break, an 11.2 per cent increase compared last year’s holiday.
“Lunar New Year is the most important festival for Chinese people and they are keen to choose more upmarket restaurants for dinner with family and friends,” UnionPay analyst Chen Han said.
Spending on transport before and during the holiday also stayed high, as millions of people headed back home. But more people appeared to be taking to the roads in their cars over the break, with spending on petrol and tickets to scenic spots up by nearly 40 per cent in the seven days.
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The China National Tourism Administration said mainlanders made a total of 302 million domestic trips over the week, with travellers outlaying 365.1 billion yuan, a 16 per cent increase in spending.
However, a decline in the number of mainland visitors to Hong Kong resulted in fewer transactionsin the city, UnionPay said, without giving numbers.
Transactions held up elsewhere, especially in popular destinations such as Macau, Taiwan and Southeast Asia, according to UnionPay.
Mainland tourists made 5.18 million trips abroad during last year’s Lunar New Year holiday, and the number is expected to reach 6 million this year, according to forecasts by China Tourism Academy and Ctrip, an online travel services company.
They estimated that mainlanders would spend 90 billion yuan overseas during the holiday.
