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Friday, May 09, 2025

Surge in Consumption and Travel Mark China's May Day Holiday

Surge in Consumption and Travel Mark China's May Day Holiday

China's consumer market demonstrates strong recovery and growth during the May Day holiday period.
China's consumer market has exhibited robust momentum during the May Day holiday, highlighted by a significant increase in travel activity and strong sales within major retail and dining sectors.

The holiday period from May 1 to 5 saw nearly 1.5 billion cross-regional trips taken across the country, according to the Ministry of Transport, with both domestic and cross-border travel witnessing substantial growth.

Domestic travel during this holiday reached 314 million trips, reflecting a year-on-year increase of 6.4 percent.

Travel-related spending also showed positive trends, rising by 8 percent to 180.27 billion yuan (approximately $25.03 billion), as reported by official data.

Data from online travel agency Qunar.com revealed that first-time flight bookings surged by over 30 percent year-on-year during this May Day holiday.

Additionally, passenger volume for travelers aged 60 to 80 increased by an impressive 40 percent compared to the same holiday period last year.

Long-distance travel and more in-depth exploration gained popularity, with accommodation bookings more than doubling in regions such as Beitun City in Xinjiang Uygur Autonomous Region and Qamdo City in Tibet Autonomous Region.

Leisure activities like rainforest hiking, desert camel riding, and stargazing have become increasingly sought after by holidaymakers.

China's appeal as a travel destination has been reinforced by favorable policies, including tax refunds for overseas visitors and expanded visa-free entry.

According to Trip.com, inbound tourism orders surged by 130 percent year-on-year during the holiday, driven by cultural experiences and a wide variety of travel options that attracted international visitors.

Industry analyst Fang Zeqian noted that this data reflects a shift in China's tourism focus from sheer volume to quality-driven growth.

Emerging trends, such as 'reverse tourism'—where travelers prefer smaller cities and rural areas—have alleviated pressure on traditional tourist hotspots and highlighted a growing demand for unique experiences.

On the consumption front, data from the Ministry of Commerce indicated that sales in key retail and catering enterprises nationwide increased by 6.3 percent year-on-year during the holiday.

Notably, dine-in orders for local specialty dishes rose dramatically, recording a 105 percent year-on-year increase.

Many hotels reported full bookings, with online platform Meituan achieving record-high hotel booking figures, leading to a 14.9 percent increase in hotel accommodation consumption.

Various local governments engaged in measures to stimulate consumption during the May Day holiday.

Beijing launched over 100 themed activities under the 'Jingcai Siji' (Brilliant Seasons) initiative, while Changsha allocated 10 million yuan in subsidies for car purchases.

In Wuhan, the 2025 Crayfish Consumption Season was initiated, featuring collaborations between top restaurants and e-commerce platforms to bolster spending.

Officials from the Ministry of Commerce indicated plans to continue organizing trade-in programs during other key holidays to enhance consumption further.

With ongoing consumption-boosting policies, the market is anticipated to maintain steady growth, contributing to economic recovery.
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