Boosting Tourism to Drive Growth and Attract Talent
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This year's Spring Festival holiday has once again highlighted the resilience and vitality of China's tourism market, continuing the momentum witnessed in previous yearsThe sector has shown its transformative capability in energizing the economy, attracting crowds, and stimulating consumptionAlthough tourism may seem like a lightweight industry, it possesses an immense capacity to influence related sectors, making it a driving force behind the sustained growth of the Chinese economySeveral notable trends are emerging, reflecting a dynamic landscape that warrants attention.
Firstly, consumer spending on travel is on the rise, as increased supply is facilitating greater demandDuring the Spring Festival, travel expenses surged, showcasing this trendData from Fei Zhu revealed that the average spending for domestic travelers during this period increased by nearly 10% compared to last year
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The total expenditure by domestic tourists during the 2024 Spring Festival is expected to reach a staggering 5.75 trillion yuan, marking an increase of 840 billion yuan or a year-on-year growth of 17.1%. Additionally, the average spending per traveler during the Spring Festival in 2024 is estimated to be 1,335 yuan, a decline of 10% from the same period in 2019. In contrast, the National Day holiday saw an increase of 10.2% in average tourist spending compared to 2019, indicating a clear recovery trajectory in tourismThe civil aviation sector is also set to accommodate around 730 million passengers in 2024, a remarkable 17.7% increase from the previous year, correlating with a rise in hotel capacities and more affordable flight and accommodation prices, which together are fueling a nationwide travel enthusiasm.
Secondly, there is still considerable upside potential in some tourism markets as latent demand from key demographics gradually surfaces
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An analysis of urban versus rural trends reveals that in 2024, urban residents are projected to take 4.37 billion trips—a 16.3% increase year on year—while rural residents will make 1.245 billion trips, marking a more modest 9.9% growthUrban travelers are expected to spend 4.93 trillion yuan on travel—an 18% increase—compared with 830 billion yuan spent by rural travelers, which reflects a 12.2% growthThe disparities in travel demand between urban and rural populations highlight the untapped potential of rural tourism marketsMoreover, demographics have played an important role, with the elderly population showing significant travel activityData from Ctrip indicates that travel frequency among seniors has doubled compared to 2019. In a shift towards leisure and self-exploration, nearly 60% of millennials and Gen Z travelers are opting for self-drive trips, with a staggering fivefold increase in rental car bookings from Generation Alpha compared to the previous year.
Thirdly, we are witnessing a tiered development approach in tourism, as an omnipresent "all-region, all-time" travel trend emerges
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The patterns of tourism demand are evolving with increased population mobilityWhile traditional tourists gravitate towards popular cities and attractions, a new breed of travelers is integrating tourism into family visits, business endeavors, or cultural activities—essentially changing their weekend destinationsThe shift is evident in service supply as well; tourism offerings are increasingly becoming available in everyday environments rather than just tourist hotspots, broadening the scope of the industry and making tourism integral to local life, thereby encouraging an inclusive approach that embraces all demographics.
In addition, outbound travel is presenting a competitive option against domestic tourism, while inbound travel provides robust support for domestic marketsCtrip's data illustrates a booming trend in outbound tourism, particularly among travelers from third- and fourth-tier cities, catalyzing a diversion of domestic tourism
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Meanwhile, the inbound tourism sector has also begun to bounce backThanks to favorable policies such as visa facilitation and the addition of visa-free entries, inbound ticketing and hotel bookings surged by 180% and 60% respectively during the Spring Festival this year, and orders for inbound tourism doubled compared to the previous yearMost international visitors continue to come from neighboring Asian countries, with more than 25% being repeat visitors to China, a clear indication of the immense potential and capacity of China's expansive tourism landscape available to the global market.
The Central Economic Work Conference has underscored the importance of diversifying consumption scenarios, expanding service consumption, and fostering the growth of the cultural tourism industryMoving forward, cultural tourism has the potential to become a pillar of the national economyAssociated with the rise of "Happy GDP," the significance of the "emotional economy" continues to gain traction
As various regions strategize for the 2025 tourism landscape, a great deal of work remainsOn one hand, there needs to be a push towards the integration of culture and tourism to enhance consumer experiencesThe Year of the Snake Spring Festival, for instance, has marked the first acknowledgment of a 'Non-Heritage' Spring Festival—with many areas launching special 'Non-Heritage' tours promoting local traditions, fostering community connections, and augmenting local charmSome traditional tourist cities may need to transition from purely natural attractions to incorporating cultural experiences, thereby creating a more immersive visitor experience.
On the other hand, reinforcing tourism infrastructure is essentialWith projections of a booming Spring Festival movie market in 2025 and the rising popularity of self-driving trips, destinations need to enhance their services comprehensively
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