China's May Day Holiday: Tourism Rises Amid Economic Concerns

China's May Day holiday saw a rise in tourist activity with 325 million domestic trips, yet spending per trip slightly decreased. Despite overall growth in travel and lodging, consumer spending remains cautious amid economic challenges. Property markets in select cities showed increased activity due to government stimuli.

China reported an uptick in tourism activity this May Day holiday, yet spending per trip slightly declined, indicating cautious consumer behavior. Official data recorded 325 million domestic trips, a 3.6% increase from last year, while overall travel expenditure rose to 185.49 billion yuan, up 2.9% from 2025.

Despite exiting COVID restrictions, China's per capita tourist spending remains below pre-pandemic levels, contributing to deflationary trends in the world's second-largest economy. The labor market remains challenging, with March retail sales growth slowing to 1.7%, missing analysts' projections.

Travel trends indicate a strong interest in cultural sites and experiences over traditional markers of economic confidence. Guangzhou, Shenzhen, and Wuhan saw property market boosts due to stimuli, evidencing targeted consumer interest shifts. Movie ticket sales remained sluggish, reflecting broader economic sentiments.