Chinese Tourists Expected to Take Longer Trips During Golden Week, But Spending May Remain Flat - Investment Manager Analysis
As the Golden Week holiday in China approaches, travel industry experts predict that Chinese tourists will opt for longer trips this year, despite the slowing economy and low consumer confidence. This may not necessarily lead to an increase in spending, as many travelers are expected to choose cheaper domestic or short-haul overseas destinations.
According to government forecasts, the daily average number of trips handled by the nation's transport sector is only expected to rise by 0.7% year-on-year during the holiday period. This trend is reflective of the overall economic slowdown and its impact on tourism growth.
One office worker in Beijing, Wang Xin, plans to drive with her family to Yangzhou for the holiday, citing the lack of toll fees and the need to save money in the current economic climate. Data from Flight Master shows that air ticket prices are expected to be significantly lower this year, with international economy class fares 25% lower than in 2023 and 7% lower than in 2019.
While some analysts suggest that last week's stimulus measures may have a limited impact on spending, the overall outlook remains cautious. Foreign airlines such as British Airways and Qantas Airways have cut or halted flights to China due to insufficient demand and price competition from local carriers. However, Korean Air Lines has seen an improvement in regional travel demand and has announced new routes to and from China.
In conclusion, the Golden Week holiday may see an increase in travel duration but a potential stagnation in spending, reflecting the broader economic challenges faced by Chinese consumers. Travelers are likely to take advantage of lower ticket prices to visit destinations in Asia and beyond, with a focus on longer stays and higher-end accommodations.
