What: Shanghai's 35th Tourism Festival generates USD 13 billion in tourism consumption, showcasing the city's cultural appeal and economic recovery.

Why it is important: This event underscores the growing importance of experiential tourism and cultural consumption in China's economic recovery, reflecting broader changes in global travel trends and consumer behaviour.

Shanghai's 35th Tourism Festival, held from September 14 to October 1, has proven to be a significant economic and cultural success. The event generated total tourism consumption of 92.4 billion yuan (approximately USD13 billion), marking a 4.2% increase compared to the previous festival. Hotel occupancy rates in Shanghai during this period reached 61%, a 2 percentage point increase from the last edition.

The festival featured a diverse array of attractions, including parades, cultural exhibitions, and themed events across the city's 16 districts. A standout attraction was the "Great Art of Dunhuang" exhibition, which drew over 40,000 visitors and sold more than 200,000 tickets since its launch on September 20.

Notably, the festival marked the return of overseas performance teams after a five-year hiatus, enhancing its international appeal. The event also benefited from China's expanding visa-free policy, allowing foreign performers more time for both participation and sightseeing.

Shanghai's strategy of transforming the city into a vast "urban theme park" during the festival aligns with the broader trend of creating immersive, culturally rich experiences for both domestic and international tourists. This approach reflects the evolving preferences of travellers, particularly Chinese consumers, who are increasingly seeking unique, experiential forms of tourism.

IADS Notes: The success of Shanghai's Tourism Festival aligns with recent trends in Chinese tourism and consumer behaviour. Reports from Vogue Business (July 2024) indicate that while Chinese tourists are returning to international destinations, their spending patterns have shifted towards experiences and personalized services rather than traditional luxury shopping. The China Economic Review (February 2024) noted a surge in domestic holiday travel, suggesting a strong recovery in China's internal tourism market. Inside Retail's analysis (February 2024) of the "new Chinese luxury consumer" emphasizes the growing importance of digital sophistication, experiential luxury, and cultural awareness among Chinese travellers. Shanghai's festival, with its focus on cultural experiences and immersive events, caters to these evolving preferences, demonstrating how cities and businesses can adapt to changing consumer demands in the post-pandemic era.

Tourism festival ignites consumption boom in Shanghai