Budget-Friendly Chinese Tourists Seek Affordable Options for Golden Week Holiday – By Reuters

By Sophie Yu and Casey Hall

BEIJING/SHANGHAI – Chinese tourists are anticipated to embark on longer journeys during this year’s Golden Week holiday, starting Tuesday. However, travel industry experts indicate that this might not translate to an increase in spending.

With the economy experiencing a slowdown and consumer confidence at near-record lows, many travelers during the week-long National Day break are expected to choose more affordable domestic locations or short-haul international destinations, capitalizing on reduced airfares.

Historically, this holiday has seen a surge in Chinese travelers, particularly abroad, due to the extended break. This year, the government projects that the daily average number of trips managed by the nation’s transport sector will increase by only 0.7% compared to last year.

"It would be considered a positive outcome if tourism spending stays on par with last year’s figures," remarked Liu Simin, an official with the tourism division of the China Society for Futures Studies in Beijing. "People are more inclined to travel in a healthy economy; without economic growth, tourism growth is also absent."

Wang Xin, a 45-year-old office worker from Beijing, shared her plans to drive to Yangzhou, a city near Shanghai celebrated for its scenic lakes, gardens, and renowned fried rice dish. "There are no tolls during the holiday, so we’ll drive instead of taking the train," she noted. "It’s best to avoid unnecessary expenses given the current economic situation. Many are facing job losses, and if I were to lose mine at my age, finding another would be tough."

Before the pandemic, her family had traveled internationally during the Golden Week, visiting places like Singapore and the United States.

DECREASING AIRFARES

Recent data suggests that domestic flight prices are expected to be 21% lower than they were during the same time last year, while international economy fares will see a 25% reduction compared to 2023 and be 7% less than in 2019.

Outbound travelers are likely to stick to short-haul Asian destinations such as Japan, South Korea, Thailand, and Singapore. However, China’s leading online travel agency has observed a notable increase in interest toward long-haul destinations like Australia, New Zealand, the UK, and France this year, with travelers opting for extended stays.

According to analysts at HSBC, "Travelers will probably take advantage of reduced ticket prices to venture further, stay longer, and upgrade to better hotels."

While recent stimulus measures could have some influence on spending, the analysts predict that spending during the holiday period may match but not surpass 2023 levels.

Some international airlines, including British Airways and Qantas Airways, have reduced or suspended flights to China this year due to weak demand and intense competition from Chinese carriers.

AirAsia Philippines recently announced plans to discontinue flights between Manila and China by the end of the year due to a sharp drop in traffic from China, which decreased from 30% in 2019 to just 2% this year.

Despite this trend, Korean Air Lines has reported improving travel demand and has announced the launch or restoration of several routes to and from China this month.