In China, May Day is an important occasion to celebrate the accomplishments and efforts of the working class, especially those from all segments of the country’s productive labor force who have significantly improved the well-being of their society. The magnificent holiday not only promotes China’s economy’s resilience but also draws attention to the country’s laborers’ pursuit of high standards of pleasure, dignity, and improved working conditions and justice systems. China’s robust economic recovery and resilience over the next three quarters will be greatly aided by the ongoing “May Day” vacation, which is being observed from May 1 to May 5. The country has already demonstrated exceptional economic success in Q1.
High-quality consumption, which generates billions of yuan in revenue, is reflected in a variety of industries, including tourism, box office, a wide range of cultural events, transportation, rail way business, aviation, entertainment, and catering. These holiday-related economic activities will have a significant beneficial influence on Q2, and they will have a comprehensive effect on macro growth in 2024. This May Day holiday is unique in that there is a surge in both inbound and outgoing travel, which presents excellent chances to boost the steady stream of consumption.
The economic significance of the “May Day” holiday may be appreciated if we closely examine the Ministry of Transport’s data that an average of 280 million journeys were made using private and public transportation on the first day, surpassing levels in 2023 and pre-COVID 2019. The estimated cross-regional trips via highways, waterways, and airways exceeded 257 million, 900,000, and 2.11 million, respectively, while the railway passenger traffic volume reached 20.4 million trips. It exceeds the 270 million travels that were anticipated throughout the five-day holiday.
This segment of the nation’s tourism and transportation industry has been doing brisk business this May Day vacation due to an increase in the number of travelers using this mode of transportation. Take a look at how the desire for luxury travel caused the Chinese railway industry to soar during the May Day vacation. According to national railway operator China State Railway Group (CSRG), on the first day of the vacation, China’s railway network handled 20.69 million passenger trips, a record single-day high. Positive economic development is seen in the railway industry, where passenger numbers have been steadily increasing.
China is well-positioned to take advantage of this trend as high-end customers search for travel alternatives among its many picturesque locations and beyond. It will do this by using its distinct attractions and warm welcome to visitors. Chinese third- and fourth-tier cities, such as Tianshui, Lishui, and Jinhua, saw a 40% year-over-year increase in travel bookings; county-level regions saw a 64% surge in hotel reservations and a 200 percent spike in ticket bookings. The holiday contributes to the growing desire of Chinese people to travel. By promoting these sites to all Chinese and international inhabitants, these travel patterns will positively represent the city on social media, boosting economic activity and contributing to future tourism in these cities. Tourism at the country side level will be essential.
In addition to the rise in domestic travel, outbound travel from China is predicted to reach pre-Covid high in 2024. There is a surge in domestic tourism, with Beijing, Guangzhou, Shanghai, and Chengdu being among the most popular locations. Dispersed among many well-known tourist destinations, the majority of these vacation spots mostly serve affluent clientele. The increase in tourism has led to a rise in demand for a number of goods and services, such as retail and hospitality, which has opened up economic prospects. Apparently, the chance to recover from slowdown has been granted to vacationers by the opening of the economy following 5.3 rise in QI.
This is good news for many vacation spots’ bottom lines since it will enable them to recoup some of the losses they sustained during the epidemic.
Chinese travelers have found that being able to enter many popular holiday locations without a visa has changed the game for them, and this outbound tourism is helping China’s aviation sector. The aviation sector’s recovery will maintain its role in the revitalization of the Chinese economy. A significant increase in both domestic and international aviation traffic is also anticipated by Chinese carriers.
For example, during the five-day vacation, the airport is expected to process over 5,800 aircraft and handle over 918,000 passenger journeys, representing a year-over-year growth of almost 21 percent. On May 5, approximately 207,000 passenger trips are expected to return to the airport. Seoul and Tokyo are two popular locations for outbound tourism. On May Day, China had a record-breaking 20% rise in foreign ticket purchases when compared to 2019. More than three times as many reservations were made for Middle Eastern travel destinations like Saudi Arabia and Egypt as for European travel destinations including the UK, Hungary, Ireland, Spain, and Croatia. This demonstrates China’s openness and acceptability to the outside world as well as its contribution to international travel and economic expansion.
The tourist industry’s rising momentum will further guarantee China’s sustained economic recovery and provide the groundwork for more growth all year long. China’s burgeoning tourist and transportation industry—which includes highways, trains, and airplanes—showcase the country’s dedication to progress and innovation and its capacity to adapt to the needs of a changing population. People’s lively movement is a testament to China’s ongoing social and economic growth. I think that this trend will help achieve 5% growth for the entire 2024 years.
