China, COVID-19 and a Different World... 100 Million Travelers During Qingming Festival

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[Asia Economy Beijing=Special Correspondent Jo Young-shin] During the Qingming Festival holiday period (3rd to 5th), the number of travelers (domestic tourists) in China was tentatively estimated to exceed 100 million, indicating that China's domestic industry has recovered to pre-COVID-19 levels.

Furthermore, it is widely expected that China's domestic consumption and tourism economy will fully recover during the upcoming Labor Day holiday period (1st to 5th of next month). As a result, predictions have emerged that China's GDP in the second quarter of this year could grow by 8 to 10%.

◆ Consumption recovered to the level of two years ago = China’s state-run Xinhua News Agency reported on the 6th, citing data from China’s largest online travel agency, Ctrip, that the number of travelers during the Qingming Festival holiday exceeded 100 million (person-times). In 2019, before COVID-19, the number of travelers during Qingming Festival was 112 million.

Chinese tourists visiting the Haitang Bay Duty-Free Shop in Sanya, Hainan, China, are lining up to purchase duty-free goods.

Xinhua News Agency stated that during the Qingming Festival holiday, airline ticket sales recovered to 2019 levels, and hotel, rental car, major tourist attraction ticket sales, and group travel bookings normalized.

In fact, the occupancy rate of homestays on Tujia, known as the Chinese version of Airbnb, increased more than 35 times compared to the same period in 2020. Additionally, rental car bookings on the travel service platform Alitrip increased by 140%, and major hotel bookings rose 4.5 times compared to the previous year, Xinhua added.

The Global Times reported on the same day in an article titled "Consumption ignited during Qingming Festival holiday in China" that China’s GDP in the second quarter is expected to grow by "more than 8%."

The outlet noted that with the epidemic under control, spending on leisure activities such as tourism, dining out, and movies has significantly increased. Citing data from China’s Ministry of Culture and Tourism, the Global Times explained that the number of travelers during the Qingming Festival holiday increased by 144% year-on-year to 102 million. Tourism revenue during this period rose 228.9% year-on-year to 27.168 billion yuan (approximately 4.6634 trillion KRW).

Movie attendance also reached an all-time high. As of noon on the 5th, China’s nationwide box office surpassed 700 million yuan, surpassing the 641 million yuan recorded in 2019 in one go. The Global Times further reported that monitoring 100 restaurants and large supermarkets in Beijing during the holiday period showed sales increased by 6.4% compared to 2019, totaling 2.15 billion yuan.

◆ "Second-quarter growth rate could approach 10%" = Hu Chi-mu, chief researcher at Synosteel Economic Research Institute, analyzed, "Consumption that was suppressed last year due to the COVID-19 outbreak and travel restrictions during the Lunar New Year holiday in February has burst out during this Qingming Festival holiday. Personal spending during this Qingming Festival holiday has a strong character of ‘revenge consumption.’"

During the Qingming Festival holiday (April 3-5), on the 4th (local time), the famous tourist attraction West Lake in Hangzhou, Zhejiang Province, China, was crowded with people. [Image source=AFP Yonhap News]

The Global Times forecasted that even more consumption will occur during the Labor Day holiday from the 1st to the 5th of next month, which will boost domestic demand. It reported that airline and train ticket bookings for major tourist destinations during the Labor Day holiday have already more than doubled compared to 2019, surpassing pre-COVID-19 levels.

Wu Chaoming, chief analyst at China’s CEB Securities, said, "The Chinese economy is gradually recovering," and predicted, "The domestic consumption sector will contribute to economic growth, with second-quarter GDP growing by 8.5%."

Chief researcher Hu also expressed optimism, saying, "Individual incomes will increase due to government policies such as employment support and tax cuts," and added, "Second-quarter GDP could grow close to 10%."