DOMESTIC TOURISM: A STIMULANT FOR ECONOMIC GROWTH
China’s tourism sector is critical not only for the country’s economy but also for the global economic landscape. The sector drives consumption, which is crucial as the world grapples with economic slowdowns.
In recent years, the Chinese government has placed significant emphasis on encouraging domestic tourism to stimulate economic growth.
With China’s economy slowing down – it grew 4.7 per cent in the second quarter this year, down from the previous quarter’s 5.3 per cent growth – boosting tourism service consumption has become a priority.
Domestic tourism helps drive demand-side economic growth, providing a compensatory consumption boost after the curbed demand during the pandemic. Urban residents, facing increased social pressures, now see tourism as an indispensable consumption choice.
Leaving behind the urban hustle and bustle, they seek both mental and physical rejuvenation through sunny beaches and refreshing scenery. Despite the potential shrinking of household incomes, middle-class families in China still have disposable income for domestic vacations. For those with young kids, family vacations provide opportunities for parents to both bond with their children and educate them. Even when parents are unable to accompany their children on a tour, they would spend money to send them on a summer or winter vacation “study tour”.
Furthermore, the development of the high-speed rail system and rise of online travel apps like Ctrip, Qunar, Mafengwo, have greatly facilitated domestic travel convenience. Young travellers in China are becoming more explorative, seeking novel attractions and niche, immersive tourist experiences. The rise of user-generated short travel videos on social media and travel live streaming have also propelled the popularity of lesser-known destinations among netizens.
As a result, official figures released on Jul 26 show that around 2.73 billion domestic trips were made between January and June this year, an increase of 14.3 per cent from the same period last year. Domestic travellers spent 2.73 trillion yuan (US$378 billion) on tourism activities, up 19 per cent. By the end of the year, domestic travel spending alone is projected to reach new heights, contributing 6.79 trillion yuan to the economy.
This surge underscores the robust recovery and growing importance of domestic tourism in China. This year, the travel and tourism industry is projected to account for at least 9 per cent of the GDP, according to the China Tourism Association.
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