Chinese state-run media highlighted the surge in tourism activity during the “Golden Week” of the communist regime’s “National Day” holiday, showcasing the recovery of consumer spending power in China.
Nonetheless, economists believe that the Chinese Communist Party (CCP) is misleading the public, emphasizing that the tourism sector’s impact on revitalizing overall domestic demand and reviving the sluggish Chinese economy is minimal.
Starting from the Mid-Autumn Festival on Sept. 29 and lasting until Oct. 6, China celebrated its lengthiest “National Day” holiday week. Government agencies have now released data regarding what they described as “booming” activity during this period.
According to China UnionPay’s online transaction data, there was a substantial surge in transaction volume in China’s travel, accommodation, transportation, and related sectors on the day of the Mid-Autumn Festival. In comparison to the same period last year, prior to lifting COVID-19 lockdown measures, the transaction value in the tourism industry saw a remarkable increase of 400 percent, while transportation and accommodation witnessed respective growth rates of over 48 percent.
According to statistics from China’s Railway Group, the number of passengers transported on the first day of the holiday week exceeded 20 million for the first time, with around 20 million passengers transported in a single day, setting a new high in the history of the national railways.
The Ministry of Culture and Tourism reported that a total of 395 million people traveled during the first three days of the holiday, an increase of 75.8 percent over the same period last year; tourism revenue was 342.2 billion yuan (about $47.54 million), an increase of 125.3 percent.
Regarding the CCP’s portrayal of the thriving tourism market, economist Li Hengqing, who resides in the United States, told The Epoch Times on Oct. 3 that the CCP’s assertion of a 125 percent surge in tourism revenue was based on comparing data to October 2022, which can be “misleading.”
“During that period, Chinese citizens were largely confined to their homes and could only leave for COVID-19 testing. Many were directed to isolation facilities and makeshift hospitals for mandatory quarantine. The comparison may be misleading. It would make more sense if the current data was compared to that of 2019 before the pandemic hit. Therefore, it can be concluded that the CCP is providing false information and misleading the general populace,” he said.
‘Cheap Travel’
While the CCP’s media boast about local tourism accomplishments and the thriving tourism industry, “cheap travel” is frequently mentioned in news stories and social media.To cut down on travel costs, a significant number of those aged between 20 and 35 are opting to spend the night in bathhouses instead of hotels, according to Meituan, a popular Chinese shopping platform. Online transactions indicate that spending in bathhouses has surged by 150 percent compared to the levels seen in 2019.
Bathhouses in China vary in style and amenities and typically provide a place for people to relax and enjoy various spa-like experiences, with some having on-site restaurants or cafes.
Chinese media reported that hotel bookings have decreased during this year’s National Day holiday, and the previous scenes of hotels being excessively crowded were notably absent this year.
Meanwhile, international travel by Chinese citizens, which was once flourishing, continues to see limited activity.
Overseas Chinese news outlets described the situation with headlines like “After the pandemic, Chinese tourists visiting Hong Kong during National Day drop by 30%”; “A travel guide for those on a 100-yuan budget attracts nearly 20,000 online users”; ”Hong Kong’s National Day Golden Week: Millions of tourists from the mainland visited, yet their spending capacity had dwindled in comparison to the pre-pandemic period.”
Mr. Li said the theme of this year’s National Day holiday is “traveling on a budget.”
“This form of tourism is now called cheap travel. Why are Chinese people hesitant to spend more money? It’s because they have no hope for the future. Everyone has realized that the economic challenges facing China are not in the distant future; they are already here.
“Due to their sense of urgency, people are venturing out while they still have the opportunity. As a result, many people opt for day trips, leaving and returning on the same day to avoid accommodation expenses,” he said.
Mr. Wang, a Shanghai resident, told The Epoch Times on Oct. 3 that people currently keep their travel expenses relatively low, typically ranging from 100 yuan (about $14) to 200 yuan (about $28) per day.
“In the past, people spent a lot more—500 yuan [about $70], 600 yuan [about $83], or more than 1,000 yuan [about $140] a day—and usually staying in four-star and five-star hotels,” he said.
“Now, the common people have no money and don’t dare to go to high-end places to spend money. They don’t dare to spend even if they have money.”
He noted that the middle class is under significant financial pressure, and “people are not optimistic about the future. Given the current circumstances, they are either hesitant or unwilling to spend, and instead focusing on saving money.”
Ms. Li, a resident in the southwestern mega-city of Chongqing, told The Epoch Times: “Basically, local people don’t go out [travel]. Many government-owned workplaces in Chongqing don’t have money to pay salaries.
“A lot of people are unemployed and can’t find work. Many shops closed down.”
Holiday Tourism Can’t Boost Chinese Economy
Experts pointed out that tourism represents only a small portion of China’s domestic demand and cannot stimulate it significantly.Mr. Huang said: “Even in its heyday, China’s tourism only accounted for about 3 percent to 4 percent of China’s GDP.
“Tourism doesn’t serve as a primary driver of profit growth. Instead, it arises due to improved economic conditions when people have both the time and financial resources to spend. It constitutes secondary consumption rather than primary consumption. Moreover, a large part of Chinese tourism relies on foreign tourists visiting China,” he said.
Mr. Huang believes domestic holiday tourism has a short-lived and limited effect on stimulating the economy.
He said: “Presently, overall consumption has diminished, resulting in significantly reduced profits. For example, in the past, a 100 billion yuan expenditure might have yielded a 20 percent profit, but now, profits have dwindled to just 5 percent. This translates to a meager economic benefit of approximately 5 percent, contributing a mere 5 percent to the local economy.”
Mr. Li holds a similar view. “The current business climate [in China] is not very good. It’s hard to envision that the holiday week alone can spur overall consumption,” he said.
“The biggest problem [of China’s economy] is that people have no confidence in the future—no hope, no vision for the future.”
