China domestic tourism spending rises 8% as confidence returns in May Day holiday
China’s 2025 May Day holiday marked a critical milestone in the country’s post-pandemic economic recovery. Domestic tourism spending jumped by 8% year-on-year, totaling ¥180.8 billion (US$24.92 billion), with nearly 295 million domestic trips recorded. The momentum highlights how the China domestic tourism sector is regaining strength—underscoring consumer confidence, evolving travel habits, and the return of large-scale national movement.
Background: May Day as a post-COVID travel barometer
Often referred to as the Labor Day Golden Week, the May Day holiday is a key benchmark for China’s travel industry. After several years of cautious recovery, this year’s five-day break nearly reached pre-pandemic levels of activity. According to the Ministry of Culture and Tourism, hotel occupancy surged in cities like Hangzhou and Chengdu, and popular attractions from Xi’an’s ancient ruins to Hainan’s beaches reported full bookings.
Ticket sales for high-speed rail and domestic flights hit record highs, and platforms like Ctrip and Fliggy saw spikes in travel searches and package purchases. From heritage destinations to urban escapes, the surge reflected both pent-up demand and a growing sophistication in Chinese travelers’ choices.
Strategic factors fueling the rebound
Several structural shifts are powering this tourism resurgence. Government investments in domestic travel infrastructure—like upgraded rail lines, digital ticketing systems, and the expansion of national parks—have dramatically improved accessibility and appeal. Smart travel platforms and digital guides have also simplified planning for independent travelers.
Equally important is the psychological shift. With employment stabilizing and inflation relatively subdued, middle-class consumers are once again prioritizing leisure. Eco-tourism, cultural immersion, and “Zheli-style” (浙里风) travel in Zhejiang Province are gaining traction—boosted by influencers and short-video platforms like Xiaohongshu and Douyin.
Editorial insight: A mood shift, not just a money shift
While the 8% growth may appear modest, its underlying message is powerful. Chinese consumers are shedding their post-COVID financial caution and embracing lifestyle spending again. This is not just a tourism story—it’s a consumer confidence story, with implications across retail, F&B, and domestic entertainment.
In this context, travel has become a barometer for middle-class optimism. That millions chose to spend on leisure rather than save or delay is a strong indicator that discretionary spending may finally be on the rise again—a signal closely watched by economists and regional businesses alike.
Future outlook: Can summer 2025 sustain the momentum?
Tourism boards across provinces are now focused on summer 2025. Destination campaigns, travel vouchers, and cultural festivals are already underway to attract repeat travelers. Some regions are also integrating tourism with other industries—such as local film production, rural revitalization, and educational programs—to extend the value chain.
If momentum continues, China is on track to fully restore its pre-2020 tourism volume by early 2026. That would reestablish the country as Asia’s largest and most influential domestic travel market, with ripple effects for neighboring economies that depend on Chinese tourists for recovery and growth.
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