China’s May Day holiday sees tourism business rebound to pre-Covid levels

According to government data, China’s tourism industry during the May Day holiday has rebounded to pre-Covid-19 levels. The number of domestic trips has increased by over two-thirds from the previous year, reaching a figure of 274 million. This development signals a potential turning point for the country’s tourism sector. If sustained, it could provide a much-needed boost to China’s post-pandemic economic recovery. The Ministry of Culture and Tourism reported that during the five-day break, Chinese tourists spent a whopping 148 billion yuan (RM95 billion), which is equivalent to 2019 levels. The figures are being closely monitored as a gauge of China’s economic health, and the country is expected to experience a 73% increase in domestic tourist trips this year. Asset managers like Vontobel believe that China’s recovery will accelerate further, benefiting companies that cater to domestic consumers across leisure and e-commerce, as well as travel-focused businesses in China and other parts of Asia. Moreover, the May Day box office collections have exceeded 1.5 billion yuan, ranking third in May Day box office receipts in Chinese film history. The Ministry of Culture and Tourism has also launched a month-long campaign aimed at promoting domestic travel and leisure, while local governments actively encourage consumption. All in all, this year’s May Day holiday is a testament to China’s resilience and dynamic tourism sector, which bodes well for the country’s overall economic outlook.