Golden Week 2024: China travels more, spends frugally

Chinese consumers eagerly took advantage of the extended Golden Week holiday (October 1 to 7) to take a break. And yet economic challenges tempered spending. Despite a surge in travel, consumer behavior during this peak travel period exhibited a more cautious approach to spending in light of the country’s ongoing economic woes. In recent years, China’s Golden Week has become a bellwether for gauging the country's economic health and consumer spending patterns. Surge from lower-tier cities One of the most notable trends this year was the surge in outbound travel from lower-tier cities. Outbound bookings from third-tier cities such as Anshan, Baotou, Chuzhou, Daqing and others more than doubled compared to last year — propelled by affordable flight options and visa-free destinations such as Thailand, Japan, and South Korea. The change marked a shift in travel behavior, as residents from these cities, traditionally more focused on domestic vacations, ventured further. Reasons for this include lower living costs, and growing disposable incomes among younger travelers, enabling more people from smaller cities to embark on international getaways. Data from Chinese travel giant Trip.com shows that travelers from third- and second-tier cities accounted for 40% of international travelers during Golden Week, with Japan and Southeast Asia countries among the most popular destinations. At the same time, residents from China’s first-tier cities increasingly opted for domestic trips – often choosing rural tourism and eco-friendly travel experiences as a way to escape the hustle of urban life. Tourists pour into Hong Kong, Macau Travel to Hong Kong resurged this year with 980,000 mainland Chinese visitors pouring into the city over the first five days of the weeklong holiday, up 35% YoY. Macau set a new record, with over 790,000 tourists entering the Special Administrative Region in the first five days – a significant boost for its recovering tourism industry. On October 3 alone, Macau welcomed over 174,000 tourists in a single day, the highest figure recorded during this year’s Golden Week. Overall, China’s Greater Bay Area saw a record number of mainland Chinese tourists flock to Hong Kong and Macau. These statistics highlight the enduring shopping and tourism appeal of Hong Kong and Macau for mainland tourists, who continue to see both cities as accessible, exciting destinations for short-term getaways. Travel up, spending down Although the volume of travelers increased this year, consumer spending patterns told a different story. China’s continued economic uncertainties, caused in part by a prolonged real estate slump and rising unemployment, led to a cautious approach to holiday expenditure. The average spending per traveler was lower compared to previous years, as many sought budget-friendly options or cut back on luxury spending. This trend was particularly evident in the sale of luxury goods. Prices for high-end items, such as Moutai liquor and hairy crabs (oftentimes a holiday gift item) fell sharply during Golden Week. Moutai, one of China’s most sought-after liquors, saw its price drop 16.99% to 2,490 RMB ($341) for limited edition bottles from 3,000 RMB ($412), according to Channel News Asia. Similarly, the price of hairy crabs, a favored gift item during the holiday, declined by 10%, as consumers became more selective about their purchases. Retailers reported reduced demand for gift certificates and holiday packages, as many consumers tightened their belts. Looking ahead, Chinese travelers appear to be placing a greater emphasis on affordable, experience-driven vacations rather than extravagant, high-spending trips. Rural tourism, eco-friendly accommodations, and wellness retreats are expected to continue growing in popularity, as consumers increasingly prioritize sustainability and mental well-being over luxury. The rise of outbound travel from lower-tier cities is also likely to persist, with more travelers exploring nearby international destinations that offer value for money. Ultimately, Golden Week 2024 demonstrated a mix of increased travel activity alongside restrained consumer spending, signaling evolving priorities for Chinese consumers amid an uncertain economic landscape. While the demand to explore new destinations remains strong, the frugality seen this holiday season is likely to shape China’s travel and consumption patterns in the year to come. Additional reporting by William Zhou

Golden Week 2024: China travels more, spends frugally

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Published October 10, 2024

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Golden Week 2024: China travels more, spends frugally