Chinese travel surged over the Labor Day holidays to exceed pre-pandemic levels while spending continued to lag, signaling a slow recovery in consumption. There were 230 million domestic trips over the five-day break, a 3.2% increase from 2019, according to government data. Consumers are still reluctant to spend though, with tourism revenue rising to RMB 113 billion (USD 17.4 billion), or 77% of the level reached two years ago.
While revenue picked up from the previous public holidays in April, the figures show consumers aren’t splurging as they have before, given a still uncertain economic outlook and weak labor market. The Communist Party’s Politburo, the top decision making body, said last week the economic recovery is still uneven and pledged to raise people’s income to help spur domestic demand.
Stocks of tourism and movie businesses dropped Thursday as investors rushed to take profit after the holiday break.
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