China’s tourism business during May Day holiday rebounds to pre-COVID levels: Government data

China’s tourism industry has seen a remarkable rebound during the May Day holiday, reaching pre-COVID levels with a 70.8% rise in domestic trips from the previous year, according to official government data reported by Reuters. This year’s figures, from the first travel season without restrictions since the pandemic, are being used as a gauge of China’s economic health. Chinese tourists spent 148 billion yuan ($21.42 billion) in total during these trips, a 128.9% increase from a year earlier and on par with 2019 levels. The travel boom during the May holiday is being heralded as a turning point for China’s tourism sector by Xinhua News Agency. The China Tourism Academy estimates that about 4.55 billion domestic tourist trips will be made this year, a 73% increase from 2022. This recovery in the service sector could ease concerns about China’s post-pandemic economic recovery losing momentum, as the property market remains soft and exports face headwinds. Asset manager Vontobel predicts that domestic leisure and e-commerce businesses, travel-focused businesses in China and across Asia are likely to benefit from China’s accelerating recovery. The Ministry of Culture and Tourism launched a campaign to promote domestic travel and leisure over the holiday, and local governments are making efforts to boost consumption during this time.