Explosive Increase in Travel Searches and Bookings
Local Governments Boost Consumption by Distributing Coupons
As travel demand in China explodes during the Labor Day holiday, it is forecasted that consumption will reach 120 billion yuan (approximately 23.184 trillion KRW). Thanks to policies from local governments nationwide aimed at boosting consumption, travelers are increasing their spending, which is expected to also contribute to driving economic growth.
According to China Media Group on the 27th, consumption during the five-day Labor Day holiday from April 29 to May 3 is expected to reach 120 billion yuan. This Labor Day holiday is the second long holiday since China declared the "With-Corona" policy at the end of last year, following the Spring Festival (Chinese New Year, January 21-27).
The surge in travel demand has already been confirmed through various data. According to the China Railway system, the total number of passengers managed between April 27 and May 4 is expected to reach 120 million. This represents a 20% increase compared to 2019 before the COVID-19 outbreak and is the highest level ever recorded for the same period based on railway system estimates. The number of vehicles using highways during the holiday is expected to average between 53.3 million and 54.3 million per day.
According to data shared by Chinese online travel service app Trip.com with the state-run Global Times (GT), domestic flight searches increased by 290% compared to last year and by 110% compared to 2019. For accommodations, search volumes jumped 900% compared to last year and 200% compared to 2019.
Professor Cong Yi from Tianjin University of Finance and Economics explained to GT, "The tourism sector started heating up even before the holiday, and government efforts to stimulate consumption and support the real economy are contributing to the rapid rebound in tourism." Professor Cong added, "In addition to the central government, local governments nationwide are implementing measures to restore consumption, which will produce economic results exceeding first-quarter national forecasts and help restore market confidence."
In fact, many local governments are rolling out measures to revitalize consumption, including during this holiday period. Shandong Province in eastern China issued consumption coupons worth 528 million yuan, and Zhejiang Province is distributing consumption coupons in the form of digital yuan worth 15 billion yuan. The Ministry of Commerce of China, together with related agencies, is also organizing an online shopping festival from April 28 to May 12 to showcase various overseas products from Central Asia and Southeast Asia.
Professor Cong stated, "After the announcement of a 4.5% GDP growth rate in the first quarter, pessimism about Chinese consumption has gradually subsided. The growth rate in the second quarter is expected to be even more significant, and the holiday boom will help dispel concerns about a global economic downturn."
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