What: Despite record domestic travel during Golden Week, average spending per trip in China declined, highlighting persistent economic pressures and evolving consumer behaviour.

Why it is important: The decline in per-trip spending and entertainment outlays illustrates a fundamental shift in Chinese consumer priorities, aligning with broader market trends toward experiential and digital consumption.

Summary: China’s Golden Week holiday revealed a striking disconnect between the surge in domestic travel and the decline in average spending per trip, which fell to its lowest level in three years. This pattern reflects the persistent weakness in consumer confidence, despite government efforts to stimulate demand through targeted policies and stimulus packages. While the total number of trips reached a record high, the modest increase in overall tourism revenue was offset by a reduction in discretionary spending, particularly in entertainment sectors such as cinema, which saw significant declines. These trends are compounded by ongoing macroeconomic pressures, including a sluggish property sector, job insecurity, and the impact of renewed US tariffs, all of which have eroded household sentiment and altered spending habits. Chinese consumers are increasingly prioritising experiences and digital engagement over traditional retail and entertainment, signaling a broader transformation in consumption patterns. This evolving landscape challenges retailers and policymakers to adapt their strategies to meet the demands of a more cautious and experience-driven consumer base.

IADS Notes: China’s Golden Week spending downturn is consistent with findings from March, April, and May 2025, which show that government stimulus and policy efforts have not fully restored consumer confidence amid property sector weakness and trade tensions (Inside Retail, March 2025; BCG, April 2025; Xinhuanet, May 2025). The record number of trips but lower per-trip spending mirrors the shift toward experiential and cultural engagement over traditional shopping, as seen in Hong Kong and across China (Financial Times, May 2025; WWD, November 2024). The entertainment sector’s decline and the rise of digital content consumption further confirm a fundamental change in consumer behavior, as documented in Fung Group, January 2025 and Inside Retail, April 2025.

China’s Golden Week holiday spending falls in latest red flag for economy