Chinese consumers flocked to scenic spots and opened their wallets at restaurants, malls and cinemas during the Lunar New Year holiday, underscoring momentum in the country’s transformation towards a consumption-driven economy.
Income from holiday tourism during the January 27 to February 2 period rose 15.9% from a year earlier to 423.3bn yuan ($62bn), according to the China National Tourism Administration. Sales at shopping centres and restaurants climbed 11.4% to 840bn yuan, the Ministry of Commerce said. Meanwhile, box office receipts in January rose 25% from a year ago, ending a four-month slump.
China’s increasingly wealthy middle class is helping shift the economy away from a reliance on investment and trade, giving policymakers a buffer to deflate bubbles and prepare for a potential trade clash with the US. Consumption contributed 64.6% of the economy’s 6.7% full-year expansion last year.
Ordering holiday food and gifts from online stores has become a new trend, the commerce ministry said, reflecting patterns during the rest of the year. Holiday spending is focused more on “quality, health, fashion and personal character,” the ministry said. About 6.2mn Chinese travelled overseas during the holiday, up 7% from a year earlier, according to the nation’s tourism administration.