China’s May Day Holiday Sees Tourism Rebound to Pre-Pandemic Levels

According to government data, China’s tourism has successfully rebounded to pre-COVID 19 levels during the May Day holiday, with domestic trips increasing by over two-thirds. The tourism industry’s recovery could alleviate concerns about China’s post-pandemic economic recovery losing momentum due to the soft property market and weak manufacturing sector. During the five-day break, Chinese tourists made 274 million domestic trips, spending a whopping 148 billion yuan. The data from this year’s holiday period, which experienced no restrictions, could indicate China’s economic health in the near future. Goldman Sachs reported that strong holiday tourism data coupled with solid April services PMI indicates positive consumption and service recovery, despite the soft manufacturing growth momentum. The next phase of recovery will rely on increased income growth and better consumer confidence, making the recovery model more sustainable, added Goldman Sachs. The China Tourism Academy also estimates that around 4.55 billion domestic tourist trips will be made this year, up 73% from last year. Overall, the travel boom during the May holiday “can be seen as a turning point of China’s tourism sector,” according to official Xinhua News Agency.