Dragon Boat Festival, a traditional festival celebrated with a three-day national holiday from 22-24 June, has proven to be a significant catalyst for China’s tourism industry and consumer spending, although some dark clouds remain
Despite the lingering effects of the Covid-19 pandemic, this year’s Dragon Boat Festival holiday saw a remarkable surge in travel numbers, both domestically and internationally, as well as a considerable increase in overall tourism spending.
There was a surge in domestic tourism as Chinese citizens embraced the opportunity to explore their own country. According to CGTN, 106 million trips were taken during the three-day holiday, and domestic travel revenue recovered to 94.9% of pre-pandemic levels in 2019. Concerts and music festivals proved to be major draws, while evening activities also saw a boost due to record high day-time temperatures.
Ctrip, a leading travel booking platform, revealed a substantial rise in outbound travel bookings during the holiday period, increasing more than 12 times year-on-year. People from the post-80s and post-90s generations made up 73% of all bookings, with the most popular destinations being Hong Kong, Bangkok, Macau, Tokyo and Singapore (short haul destinations likely being the main choice due to the short duration of the holiday).
The willingness of Chinese consumers to travel is good news for destinations like the UK, as post-Covid “revenge spending” on hotels and shopping overseas is thought to have the potential to boost the UK economy.
The Dragon Boat Festival holiday also proved to be a boon for China’s entertainment industry. Chinese cinemas reported the second-highest box office gross ever during the holiday, raking in RMB 910 million (£98.9 million) between 22-24 June. The most popular film was Lost in the Stars, a Chinese remake of the 1990 Russian film A Trap for Lonely Man. The surge in cinema attendance signifies the revival of consumer confidence and the desire for relaxing, escapist activities after a challenging period.
Despite the positive trends, concerns about the longer-term health of China’s consumer market remain, especially after the growth in consumer goods spending dropped from 15.9% in April to 10.9% in May. The South China Morning Post reported that a Beijing-based think tank, China Macroeconomy Forum, has called for subsidies of RMB 1,000 per person to be issued in the form of digital yuan to boost disposable income and avoid uneven economic recovery.
China Consumer 2023
China Consumer 2023This article was produced as part of a series for China Consumer 2023.
Learn more about CBBC’s flagship consumer event of 2023 here.
