The number of domestic tourism trips taken by Chinese consumers reached 119% of 2019 levels during the recent May Day holiday, aided by strong pent-up demand and the slower return of international flight capacity, according to ratings agency Fitch.
In a research note, Fitch analysts said the domestic recovery trajectory was hugely encouraging for the tourism industry, which appears to be less affected by uncertainty over employment and income growth than other sectors. This, they explain, is due to Chinese consumers’ strong desire to travel after years of mobility restrictions.
However, “Domestic tourism also benefits from the slow recovery in outbound flights, which resulted in many people turning to travelling around China,” the agency said. “We do not expect international air traffic to return to 80% of pre-pandemic levels until the fourth quarter of 2023.”
While total domestic trips grew by 19% over 1019 levels, spending grew at a slower rate – reaching 100.9% of pre-COVID figures – suggesting consumers are spending less per trip than previously. Fitch suggests this is due to a large number of low-income travellers after years of travel restrictions, more visitors to lower-tier cities and rural areas, and a large share of short-distance trips due to high hotel and airfare prices.
In total, there were around 274 million domestic trips made in mainland China during the May Day holiday from 1 to 5 May with the average number of daily domestic flights reaching 112% of 2019 levels. By comparison, international flights remained at just 40%, the analysts observed.
RelatedPosts
