What: During China's National Day Golden Week holiday, the number of domestic trips and total travel expenditure increased, but per capita spending remained lower than pre-pandemic levels.

Why it is important: This trend indicates sluggish consumer spending in China, reflecting broader economic concerns such as a downturn in the property market and employment and income security issues.

China's Golden Week holiday saw an increase in domestic travel, with 765 million trips made, a 5.9% year-on-year rise, and total travel expenditure reaching 700.82 billion yuan (USD 99.30 billion), a 6.3% year-on-year increase. However, per capita spending was 2.09% lower than in 2019, before the COVID pandemic, according to Reuters' calculations. The average spending per person only edged up 0.38% year on year, which is almost flat.

This sluggish spending is attributed to economic challenges, including a downturn in the property market and concerns about employment and income security. Despite the desire to travel, Chinese consumers are being frugal, with some bringing their own food to scenic sites to avoid buying from kiosks and others opting for free or low-cost sightseeing options. The behaviour is reflected in social media posts, where users highlighted affordable attractions and avoided spending on hotels or other amenities.

China's Golden Week travel spending falls short of pre-pandemic levels