The economic struggles of China dampen the holiday travel during the 'Golden Week'.

• Despite anticipating an increase in travelers during Golden Week, China's ongoing economic struggles are likely to impact overall holiday spending.
• Despite an anticipated increase in the number of domestic trips during the holiday season, the average spending per traveler is predicted to decrease.
• Not only have flights become more affordable, research suggests that individuals may be choosing less expensive travel options.

Despite anticipating an increase in travelers during Golden Week, China's ongoing economic struggles are likely to impact overall holiday spending.

According to officials at the Ministry of Transport, the number of inter-city trips during the National Day holiday this year is projected to be 1.94 billion, slightly higher than the previous year.

Despite an anticipated increase in the number of domestic trips during the holiday season, the average spending per traveler is predicted to decrease.

Rein stated that consumers in China are likely to reduce their spending until they feel their income levels are secure and will increase in the future.

According to a report by Trip.com, average prices for hotels and flights on their website have been lower than the previous year, with both domestic and outbound flights experiencing a decline in prices during the National Day period.

Natixis's chief economist, Alicia Garcia Herrero, stated that the country may experience a slight increase in overall tourism spending during the holiday break. However, this increase should be viewed in relation to what she referred to as last year's "lower base."

Last year, during the Golden Week holiday, China's domestic tourism revenue reached 753 billion yuan ($107.37 billion), which was a 1.5% increase from 2019, as per data from the Ministry of Culture and Tourism.

Not only have flights become more affordable, research suggests that individuals may be choosing less expensive travel options.

Over 175 million rail trips are expected during Golden Week from Sept. 29 to Oct. 8, with the highest passenger volume forecast for Tuesday at over 21 million trips, according to the National Railway Administration.

On May 1, during China's Labor Day holiday, a single-day record of 20.7 million trips were made.

The number of domestic trips in China has increased by 16.8% in the first three quarters of this year compared to the same period last year, with a total of 4.29 billion trips expected, according to a top official at the Ministry of Culture and Tourism.

The official stated that the tourism revenue in the first three quarters is predicted to increase by 17.1% annually, reaching 4.32 trillion yuan, or $615.6 billion. Additionally, the number of inbound passenger trips for the first three quarters is expected to grow by 55.4% annually, to 95 million.

The mixed travel data this year suggests that the country has been on a winding path towards recovery from the Covid pandemic. Despite seeing more domestic trips and total tourism spend during the Labor Day holiday in May compared to 2019, the average spending per traveler was still lower than in 2019.

In response to the release of disappointing data last month, Chinese officials announced a series of support measures to revitalize the economy, including reducing the amount of cash banks are required to hold by 50 basis points.

After the country digests the latest round of government stimulus, there might be a major rebound in consumer spending during the upcoming Chinese New Year, Rein predicted.