Chinese Golden Week Sees Decline in Holiday Spending
Chinese holidaymakers' spending during the eight-day Golden Week hit a three-year low, despite hopes for an economic boost from a domestic stock rally. While tourism revenue rose, weak consumer demand and a drop in box office earnings highlighted broader economic challenges in China amidst domestic and international pressures.
Spending by Chinese holidaymakers over the Golden Week fell to its lowest in three years, casting doubt on hopes that a rally in the domestic stock market would boost consumer spending. The eight-day holiday saw average trip spending at 911.04 yuan ($113.52), marking a 0.55% decrease from last year, according to Reuters' analysis of government data.
This drop comes despite a 15% rise in tourism revenue to 809 billion yuan, according to the Culture and Tourism Ministry. Overall, 888 million trips were taken, showing robust travel activity. However, Nomura analysts pointed out that the recent stock market surge seemed to offer little benefit to consumer spending, which remains subdued amid various pressures, such as the property sector downturn and job security concerns.
The Chinese film industry, which usually thrives during Golden Week, also experienced a downturn. Box office earnings plummeted by 12.8% compared to last year. The absence of major movie releases contributed significantly to this decline. With a national box office take of 1.835 billion yuan, the revenue was far below the 2.735 billion yuan recorded for a similar holiday in 2023.
(With inputs from agencies.)
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