China's 'Super Golden Week' Holiday Fuels Robust Economic Recovery and Consumption Growth

Vibrant Holiday Period Boosts Domestic Economy

China's recent 'Super Golden Week,' an extended eight-day holiday combining the National Day and Mid-Autumn Festival from September 29 to October 6, 2023, showcased a robust resurgence in consumption and sustained economic momentum. This period served as a significant indicator of the country's ongoing economic recovery and a trend towards high-quality development. The holiday witnessed a remarkable increase in domestic travel and spending across various sectors, surpassing pre-pandemic levels in several key metrics.

Tourism and Travel See Significant Surge

During the eight-day period, China recorded an impressive 826 million domestic passenger trips, marking a substantial 71.3 percent year-on-year increase and a 4.1 percent rise compared to 2019. This surge in travel generated approximately RMB 753.43 billion (US$104.68 billion) in tourism revenue, reflecting a staggering 129.5 percent year-on-year growth and a 1.5 percent increase from 2019 figures. The Ministry of Transport reported over 2 billion cross-regional trips nationwide, with railways handling an estimated 153 million passenger trips and civil aviation carrying 19.138 million passengers. Major commercial areas in 36 cities experienced a 164 percent year-on-year rise in passenger traffic.

Consumption Trends Highlight Quality and Innovation

Beyond tourism, the 'Super Golden Week' spurred diverse spending patterns, indicating a shift towards quality and health-oriented choices. Sales at key monitored retail and dining enterprises saw a 9 percent year-on-year increase during the first seven days of the holiday. Data from e-commerce platform Meituan showed that the average daily consumption scale in the service retail sector surged by 153 percent compared to 2019, while dine-in consumption saw an even more remarkable increase of 254 percent. New consumption trends included a significant uptake in 'green' and 'smart' products, with sales of green organic food surging 27.9 percent year-on-year, and smart home appliances increasing by 14.3 percent. 'China-chic' clothing also saw a 14.1 percent rise. Cultural tourism, rural tourism, and 'reverse tourism' – where travelers opt for less conventional destinations – also gained considerable traction.

Economic Implications and Future Outlook

The robust performance during the 'Super Golden Week' is viewed as a powerful catalyst for China's economic recovery and a resurgence of consumer spending. While the sheer volume of trips and overall revenue demonstrated strong vitality, some analyses noted that per-trip expenditure slightly lagged behind pre-pandemic levels, suggesting a degree of consumer caution. Nevertheless, the holiday's economic data underscores the resilience of China's domestic market and its potential as a major growth driver, reinforcing confidence in the country's economic trajectory towards the end of the year.