China’s Lunar New Year Tourism Spending Surges Beyond Pre-Covid Levels

According to official data, tourism expenditure in China during the Lunar New Year holiday surpassed pre-Covid levels.

According to government data, domestic tourism spending was 632.7 billion yuan (£69.7 billion), up 47% from the same holiday period last year.

The celebrations followed years of pandemic lockdowns and restrictions, which were removed in early 2023.

The statistics were further enhanced because the holiday was one day longer than usual.

The numbers for the commencement of the Year of the Dragon reveal that 474 million domestic travels were made during the eight-day break, which ended on Sunday. That was over 34% greater than the previous year and 19% over pre-pandemic levels in 2019.

Although officials could not provide a breakdown of the statistics, calculations based on official information reveal that average spending on each trip decreased by approximately 9.5% compared to 2019.

“China’s Economy Finds Respite as Lunar New Year Festivities Drive Recovery”

This implies that “consumption downgrading is still widely seen,” analysts from US investment banking behemoth Goldman Sachs noted in a note.

The Spring Festival in China is the world’s largest annual migration.

Traditionally, hundreds of millions of Chinese people return to their hometowns to reconcile with family members or visit tourist spots throughout the country.

During the pandemic, big events were cancelled, and travel was prohibited.

The increase in overall Lunar New Year expenditure is some rare good news for the world’s second-largest economy, which is battling various challenges.

Beijing is dealing with major difficulties, including a property market crisis, sluggish exports, and fears over dropping consumer prices, sometimes known as deflation.

Meanwhile, official data released on Sunday revealed that foreign enterprises’ investment in China climbed by the least amount in three decades.

According to the State Administration of Foreign Exchange, Foreign Direct Investment (FDI) has fallen to its lowest level since 1993.