China May Day holiday spending delivers mixed picture on post-COVID recovery

China May Day holiday spending delivers mixed picture on post-COVID recovery

BEIJING: Home guests spent 166.9 billion yuan ( US$ 23.13 billion ) during one of China’s longest falls, the May Day holiday, for a rise of 13.5 per cent from pre- epidemic levels, government data showed on Monday, but consumption per head lagged 2019 levels.

In the face of deflation pressures, great youth unemployment, and a declining property market, increasing consumer confidence has been a major challenge for Chinese authorities this year.

The tourism department recorded 295 million visits during the trip, which was 12.7 % higher than last year, shortly after China lifted the COVID-19 limits.

However, according to Reuters estimates based on official data, saving of 565.7 renminbi per head during the event, which is a crucial chance for Chinese people to travel with their families as the weather warms and flowers rose, was over 11.5 percent from pre-COVID levels in 2019.

After spending more money on another new vacation, the Tomb Sweeping festival, the data depresses hopes for a rebound in usage.

In the days leading up to the vacation, regional airline fares decreased as forecasts suggested more travelers were choosing to drive instead or have booked shortly to save.

In a study note released on Monday, Guotai Junan Securities reported that the number of quick trips increased considerably during the break.

Trip.com, a journey giant, reported a rise in the number of visits in smaller cities and counties over the same period.

According to the China Film Administration, box office sales of 1.53 billion yuan almost matched those of 1.52 billion last year during the same time period.

According to field office statistics from Maoyan, Formed Police System, a movie about Chinese officers serving on foreign peacekeeping operations for the United Nations, had earned more than 400 million renminbi.