China May Day spending mixed

Domestic travelers spent RMB 166.9 billion ($23.13 billion) during one of China’s longest breaks, the May Day holiday, a rise of 13.5% from pre-pandemic levels, government data showed on Monday, but expenditure per head lagged 2019 rates, reports Nikkei Asia. Boosting consumer confidence has presented a key challenge for Chinese authorities this year amid a declining property market, high youth unemployment and deflation pressures.

The total spent over the May 1 to 5 holiday was 12.7% higher than last year, shortly after China lifted COVID-19 curbs, and the tourism ministry recorded 295 million domestic trips during the holiday.

But spending of RMB 565.7 per head during the holiday period, a key opportunity for residents to go on family trips as the weather warms and spring flowers bloom, was down 11.5% from pre-COVID levels in 2019, Reuters calculations based on official data show.