Lunar New Year | Image:Unsplash
Lunar New Year spending: As the Lunar New Year holidays drew to a close on Saturday, official data revealed a remarkable 47.3 per cent year-on-year increase in tourism revenues in China. This surge, attributed to a domestic travel boom and an extended holiday period, provides a temporary reprieve for policymakers amid deflationary concerns stemming from weak consumer demand.
During this year’s holiday, often hailed as the world’s largest annual migration, tourist attractions nationwide experienced unprecedented crowds. Domestic tourism spending soared by 47.3 per cent to reach 632.7 billion yuan ($87.96 billion) compared to the same period in 2023. Additionally, the number of domestic trips surged by 34.3 per cent to a total of 474 million.
Compared to the pre-pandemic Lunar New Year holiday in 2019, domestic tourism spending rose by 7.7 per cent, while domestic trips increased by 19 per cent. It’s noteworthy that the 2024 holiday lasted for eight days, one day longer than in 2019, contributing to the overall increase in spending.
While official data did not provide a daily breakdown of trips or spending, the longer holiday duration undoubtedly bolstered overall expenditure.
In terms of international travel, China witnessed a significant increase, with approximately 13.52 million inbound and outbound trips recorded during the holiday period, marking a 2.8-fold increase from the previous year. Notably, the total entry-exit trips during the holiday reached 90 per cent of 2019 levels, indicating a substantial recovery in international travel.
Furthermore, as film viewing emerged as a favoured pastime during the holiday, China’s box office revenue surged to over 8 billion yuan ($1.11 billion) over the eight-day period, setting a new record.
Amid ongoing economic challenges, including a property downturn and sluggish demand, Chinese authorities are navigating a delicate balance between supporting economic growth and addressing deflationary pressures. Despite these challenges, the central bank opted to maintain its key policy rate unchanged, signalling a cautious approach to monetary policy amid evolving economic conditions.
(With Reuters inputs)
