Key facts
- Average spending per Chinese domestic trip during Golden Week fell to 893.92 yuan ($133.51), a 1.9% decrease from the previous year.
- This figure is the lowest since 2022, when spending was impacted by COVID-19 restrictions.
- Chinese consumers increasingly opted for overseas travel, with outbound flight bookings and multi-destination itineraries showing significant increases.
- Cinema revenue during the holiday period dropped 36.6% year-on-year to 1.16 billion yuan, the lowest National Day box office since 2014.
- Analysts attribute weak consumer spending to property downturns, sluggish wage growth, and job market concerns, leading to cautious spending despite a willingness to consume.
Chinese travelers' average spending per trip during the recent seven-day Golden Week holiday fell to a four-year low, signaling continued weakness in domestic consumer spending despite robust travel demand. The trend suggests consumers are prioritizing overseas travel and spending selectively, even as overall travel numbers increased.
Average spending per domestic trip decreased by 1.9% to 893.92 yuan ($133.51) compared to the previous year, according to Reuters calculations based on government data. This marks the lowest figure since 2022, a period heavily affected by China's strict COVID-19 restrictions. The National Day holiday is a key indicator of consumer confidence, which has been hampered by a prolonged property downturn, slow wage growth, and a soft job market.
Ailsa Liao, a senior analyst at Forthright Securities, noted that while Chinese consumers are willing to spend, their confidence remains low due to uncertainties about income and employment prospects. Many travelers extended their holiday by combining it with the Mid-Autumn Festival, leading to longer and more distant trips, with many opting for overseas destinations.
Online travel agency Trip.com Group reported that over half of outbound overseas flight bookings were made before Oct. 1, with average trip lengths exceeding nine days. Bookings for foreign hotel stays of at least seven nights surged by 123% year-on-year, and multi-destination itineraries increased by 84%.
Sienna Parulis-Cook from Dragon Trail International observed a marked increase in outbound travel demand, with a survey indicating 54% of respondents planned overseas trips, up from 35% a year prior, though value remained a consideration. Midrange accommodation was the most popular choice for overseas stays.
Domestic hotel data also reflected restrained spending, with average revenue per available room slipping 0.5% and average daily room rates falling about 2% during the holiday period, according to Jefferies analysts citing InnHome data.
The box office performance during the holiday was particularly weak, with total revenue of 1.16 billion yuan, a 36.6% decrease from the previous year and the lowest National Day holiday box office since 2014. Citi analysts attributed this decline to a lack of major film releases and a preference for travel over cinema visits.
Despite the domestic spending slowdown, travel agencies like Spring Tour reported a doubling in visa application volumes for September, with popular destinations including Italy, Spain, France, Australia, the United States, and Canada. The company anticipates continued momentum in outbound travel demand through the fourth quarter and into next year.