China welcomed 31.19 million travelers during its Golden Week, which followed the Mid-Autumn Festival and National Day. However, many travelers managed their expenses more cautiously during this 13-day period.
Travel Experience and Expenses
Ya Xia, who recently returned to Shanghai from her trip to Southeast Asia, said: "I can stay up all night to get cheaper tickets." She spent 5,000 yuan (about 660 euros) on her flight, which was her highest travel expense. Xia, in her mid-twenties, noted that due to her reduced income, she has cut back her budget for this Golden Week.
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Consumption Trend Analysis
Golden Week is considered a barometer of China's economy, and Beijing is trying to use this opportunity to showcase the purchasing power of the world's second-largest economy. However, data shows that spending per trip has decreased on average. According to CT Group's analysis, the volume of passenger traffic in the first four days of the holiday increased by only 0.1% compared to last year, significantly lower than the 3.5% increase during Labor Day holidays.
Lizzy Si Li, an expert on China's economy, says that Chinese consumers are becoming increasingly selective and tend to spend only on things they find valuable. At the same time, she emphasized that people are still willing to spend, but they have become much more cautious about the amount and type of spending.
Economic Challenges and Future
Despite the Chinese government's efforts to stimulate spending through shopping coupons, consumers remain cautious due to wealth gaps in society and economic concerns. According to senior researcher Guo-Chen Wang, while the number of trips has increased, consumption remains under pressure. In fact, data shows that average spending on trips last year reached its lowest level in three years.
Ultimately, analysts believe that the weakness in consumption during Golden Week stems from a lack of confidence among households, as the downturn in the real estate market and economic fluctuations have impacted income and job expectations.
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