China’s National Day holiday is packed with tourists, but people are tight on their wallets and it’s hard to boost domestic demand. (Schematic diagram, European News Agency)
[Financial Channel/Comprehensive Report] China’s National Day Golden Week has begun. The tourist crowds seem to be full again, and long-distance routes have even been sold out early. But behind the excitement, there is a chill. Foreign media pointed out that it’s not that Chinese people don’t go out, but they “dare to play but don’t dare to spend.” From staying in hotels to sleeping in cars, eating at roadside stalls instead of eating big meals, and only checking in and not spending money in scenic spots, "budget travel" is becoming a new trend, which also reveals that the income and consumption confidence of the Chinese people are declining.
Foreign media reported that China is embarking on the National Day Golden Week. The Mid-Autumn Festival and the National Day holiday are just a few days apart. Some office workers only need to take a few days of annual leave to get up to 13 days of vacation. Many people have already arranged to travel abroad. Long-distance travel itineraries to Spain, Portugal, Northern Europe and New Zealand have been sold out even before mid-August.
However, despite the seemingly lively tourist flow, there is another phenomenon worth noting: "Chinese people are willing to go out, but are increasingly unwilling to spend money." From accommodation, dining to scenic spot consumption, budget-consciousness has become a major feature of this year's National Day holiday, and "budget travel" has gradually become a popular choice among Chinese young people.
Wang He, an expert on China issues, said that Chinese officials originally expected a rebound in consumption, but the actual situation has not been as expected. The core problem is that people's income has shrunk, which has led to a continued contraction in overall consumer demand and a significant downgrade in consumption.
This change is also directly reflected in tourist accommodation choices. The survey shows that during the Mid-Autumn Festival and National Day this year, 33% of tourists chose mid-range hotels, and 29% chose budget hotels. The two together accounted for more than 60%. On the other hand, only 5% of tourists planned to stay in luxury hotels.
In other words, even if people are still willing to spend money to travel, the way they spend money is different. In the past, travel may have pursued comfort, quality and experience, but now more emphasis is placed on "saving what you can". Accommodation, transportation and dining have all become budget-conscious targets.
Especially for Chinese young people, the pressure on employment and income is more obvious. American economist Li Hengqing said that young people should have been the main force in tourism consumption, but under the pressure of the job market, many young people lack confidence in their families and China's economic prospects. Therefore, even if they want to travel, they can only use low-cost methods.
This has also made “QQ Travel” gradually become popular in China. The so-called "cheap travel" does not mean not traveling at all, but keeping expenses to a minimum during travel. Some people do not stay in hotels, but sleep in cars or pitch tents; some choose roadside stalls or low- and medium-priced restaurants, trying to avoid high-priced restaurants; some even go to scenic spots and only take photos to check in, and do not want to spend money on tickets or other consumption items.
On the surface, this year's National Day Golden Week in China is still a tourist boom, with crowds of people, flights and popular tourist routes all very popular. However, if we further observe the consumption structure, we will find a completely different scene. People go out, but the money is not spent.
For the Chinese economy, this phenomenon of "increased tourist numbers but downgraded consumption" also highlights the difficulties faced by the current consumer market. People are not completely unwilling to consume, but are more inclined to keep limited money in their hands under pressure on income, employment and future expectations.
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