China's National Day Tourism Revenue Hits 5 Trillion Won... Boost to Domestic Economy

425 million domestic tourists from January 1-4
Increase in tourists to Tibet and Xinjiang Autonomous Regions

[Asia Economy Beijing=Special Correspondent Jo Young-shin] It has been revealed that China earned 5 trillion won in tourism revenue during the National Day holiday alone. Despite the risk of a resurgence of COVID-19, the Chinese government’s travel promotion policies, such as providing discount coupons during the National Day holiday period, are analyzed to have driven a rebound in domestic consumption.

The state-run People's Daily reported on the 5th that from the first to the fourth day of the National Day holiday, a total of 425 million domestic tourists traveled. The People's Daily added that tourism revenue collected over the three days amounted to 31.2 billion yuan (5.3445 trillion won).

Chinese visitors to the Forbidden City during the National Day holiday period

The number of domestic flights also provides a glimpse of how much Chinese people moved. The People's Daily cited statistics from the Civil Aviation Administration of China, explaining that from the 1st to the 4th, a total of 58,608 flights operated domestically (provisional figure). The number of Chinese passengers using flights was 6.44 million.

The People's Daily explained that flights were concentrated in Guangzhou, Shenzhen, Beijing, Chengdu, Shanghai, Chongqing, Xi’an, and Kunming regions.

Statistics that estimate the amount Chinese people spent during the National Day holiday period have also emerged.

Xinhua News Agency reported that the UnionPay transaction amount in China was 628.7 billion yuan (108.5 trillion won) two days before the holiday (September 29 and 30). This is an 11.8% increase compared to the same period last year.

Xinhua also reported that the transaction amount on the first day of the holiday, the 1st, was 330 billion yuan (57 trillion won), a 15.5% increase from the previous year. This means that more than 165 trillion won was spent ahead of the National Day holiday.

In particular, Xinhua reported that UnionPay transaction amounts in the Tibet Autonomous Region and Xinjiang Uygur Autonomous Region doubled compared to the previous year. Hotel accommodation fees in Tibet more than doubled, and spending at restaurants and other facilities in the region increased by 49%.

Xinjiang also saw more than a twofold increase in airline tickets and other expenditures compared to the previous year. It is analyzed that interest in the region has increased due to US-China tensions, leading more Chinese people to visit than in previous years.

The number of Chinese visiting movie theaters during the holiday period also increased significantly. On the first day of the holiday, 50 million Chinese visited movie theaters. Box office revenue alone was 2 billion yuan (345.4 billion won).

Earlier, the Chinese Ministry of Culture and Tourism forecasted that domestic travelers during the National Day holiday would reach 550 million (cumulative number). It estimated that the number of travelers would decrease somewhat due to the impossibility of overseas travel and ongoing concerns about COVID-19.

Although the number of people moving during the holiday period may decrease compared to before COVID-19, it is widely expected that suppressed consumer sentiment will drive spending to recover to usual levels.

The issue is whether COVID-19 will resurge after the National Day holiday. The Chinese government is emphasizing quarantine rules such as wearing masks and temperature checks at tourist sites. Authorities are deeply concerned because a resurgence could deal a significant blow to China’s economic growth rate in the fourth quarter.

Beijing=Special Correspondent Jo Young-shin ascho@asiae.co.kr

This content was produced with the assistance of AI translation services.