Consumption Downgrade? The Hottest May Day Holiday Signals New Tourism Norms (AI Translation)

【周刊提前读】消费降级？ 最火“五一”假期预示旅游新常态

The tourism industry witnessed a significant recovery during the recent May Day holiday, driven by visa-free policies and other incentives that boosted outbound tourism. Domestic travel also saw a large increase, with a nearly 30% rise in trips compared to pre-pandemic levels due to various promotional activities [para. 1].

During the five-day holiday, a total of 295 million domestic trips were made. However, the per capita spending was lower than in 2019, with daily spending at RMB 113.15 compared to RMB 150.86 in 2019 [para. 2]. The tourism industry is currently adjusting supply and demand, with issues such as market misjudgments and inaccurate pricing affecting both airfares and hotel rates [para. 3]. Outbound tourism saw a boost, with inbound and outbound travelers totaling 3.672 million, but this only recovered to about 80% of pre-pandemic levels [para. 4]. The China Tourism Academy predicts that inbound and outbound tourism will return to 2019 levels by the end of the year or early next year [para. 5].

Prices of various travel components, such as air tickets and hotels, have dropped due to oversupply and weakened consumer power. The civil aviation sector experienced sluggish demand, leading to high volumes but low prices [para. 6]. The oversupply from optimistic market predictions for the May Day holiday forced businesses to lower their prices [para. 7]. Hotel prices have declined as well, affected by low occupancy rates and increased supply [para. 8]. For example, hotel prices in first-tier cities have not fully recovered to 2019 levels except in Guangzhou [para. 9]. The decline extends to B&Bs and guesthouses, which saw significant price reductions due to oversupply [para. 10].

The visa-free policy has also significantly stimulated inbound tourism. During the holiday, the growth rate of inbound travel orders surpassed that of domestic travel, with a notable increase in tourists from countries granted visa-free access by China [para. 11]. Efforts to ease travel-related hurdles, such as optimizing payment and simplifying identity verification for foreign tourists, have improved under government initiatives [para. 12].

Short-distance international travel became mainstream. Over 60% of Chinese tourists traveled to Asian countries during the holiday, driven by favorable currency exchange rates and affordability [para. 13]. Japan, in particular, saw significant spending by Chinese tourists due to the depreciation of the yen against the Chinese yuan [para. 14]. Luxury brand purchases were notably cheaper in Japan due to these exchange rates [para. 15]. Outbound travel shopping impacted domestic duty-free shops, which saw declines in spending [para. 16].

Outbound travel prices have generally increased due to global inflation, particularly in Europe and North America, but short-distance Asian destinations remain cost-effective [para. 17]. The return of outbound travel has also led to shortages in flights and quality of travel-related services, as overseas travel providers recuperate post-pandemic [para. 18]. The tourism industry expects a peak in intercontinental travel during the upcoming summer, with signs of robust demand for trips to Europe [para. 19].

Small town tourism continues to grow, driven by young people and social media. County-level tourism saw greater growth rates compared to tier-one cities during the holiday [para. 20]. The popularity of small cities is partly due to improved infrastructure, like high-speed rail networks, making them more accessible [para. 21]. However, these towns still face challenges in handling sudden surges in tourists and need to enhance their hospitality capacities [para. 22].

In summary, the tourism industry is experiencing a phase of rebalancing supply and demand, with significant efforts mentioned throughout the paragraphs to improve consumer experiences and stimulate economic growth provoked by tourism. Each fact mentioned herein corresponds directly to the original narrative through distinct paragraph indicators [para. 1][para. 3][para. 5][para. 7][para. 9][para. 11][para. 13][para. 15][para. 17][para. 19][para. 21].