China's Spring Festival Ignites Record Consumption Surge

Record-Breaking Holiday Spending Signals Economic Momentum

China's economy experienced a substantial uplift during the 2024 Spring Festival holiday, also known as the Lunar New Year, with domestic consumption and travel figures reaching unprecedented levels. The eight-day holiday, which ran from February 10 to February 17, recorded a remarkable surge in spending across various sectors, signaling a robust start to the year for the world's second-largest economy.

Official data highlights the scale of the consumption boom, with overall spending surpassing figures from both 2023 and pre-pandemic 2019 levels. This resurgence was largely attributed to increased public willingness to travel and spend, supported by government initiatives aimed at stimulating domestic demand.

Tourism and Travel Reach New Heights

The tourism sector was a primary beneficiary of the holiday fervor. China reported a staggering 474 million domestic travel trips during the Spring Festival, marking a 34.3 percent increase compared to the previous year and a 19 percent rise from 2019. Domestic tourism revenue soared to approximately RMB 632.7 billion (around US$87-89 billion), representing a 43.7 percent year-on-year increase and a 7.7 percent growth over 2019 figures.

International travel also showed strong signs of recovery, with Chinese travelers making around 3.6 million overseas trips. The Chinese mainland welcomed approximately 3.23 million visits from international destinations, contributing to a total of 13.52 million inbound and outbound visits during the period. This rebound brought international travel to about 90 percent of 2019 levels.

Diverse Consumption Trends Emerge

Beyond traditional travel, various consumption categories witnessed significant growth:

• Nighttime Consumption: Data from Meituan indicated that nighttime activities accounted for approximately 53 percent of total consumption during the holiday.
• Cultural Attractions: Museums across the country attracted 73.58 million visitors, a substantial 98.6 percent increase year-on-year.
• Service Industries: Average daily sales revenue for service consumption-related industries surged by 36 percent year-on-year and over 155 percent compared to 2019.
• Dining: The food industry thrived, with scenic restaurants reporting a 161 percent increase in orders for multi-person dine-in set meals. Catering enterprise sales saw a 17 percent year-on-year growth.
• Recreational Spending: National box office sales reached RMB 8.016 billion (approximately US$1.13 billion) with 163 million moviegoers, setting new records with increases of 18.4 percent and 26.36 percent respectively compared to 2023.
• Duty-Free Shopping: Hainan province recorded nearly RMB 2.49 billion in duty-free spending.

Government Policies Fueling the Boost

The significant consumption boost was underpinned by concerted government efforts to stimulate the economy. These included the allocation of RMB 600 million (approximately US$83 million) in consumer discounts for cultural and tourism experiences. Policies also encouraged the purchase of electric vehicles and the relaxation of visa requirements for numerous countries, which contributed to the recovery of inbound and outbound tourism. The extended holiday period, one day longer than in previous years, also provided more opportunities for travel and spending.

Looking ahead, the government continues to prioritize domestic demand. For the upcoming 2026 Spring Festival, a special nine-day shopping campaign is planned, featuring initiatives such as festive dining offers, discounts on home appliances, increased transport capacity, and cultural and tourism events. Efforts are also being made to optimize payment environments for international travelers.