Travel demand in China is expected to remain strong during the five-day Labour Day holiday from May 1, with travellers increasingly opting for domestic road trips and independent tours.
Rising fuel costs, driven by the war in Iran, are making overseas travel significantly more expensive, prompting many holidaymakers to stay within the country.
Overseas Travel Hit by Rising Costs
Higher jet fuel prices have triggered a wave of flight cancellations, particularly on routes between China and Southeast Asia.
Airlines including Air China, China Eastern Airlines, Spring Airlines and AirAsia have reduced or suspended services to popular destinations such as Bangkok, Phuket and Kuala Lumpur.
Data from the China Air Transport Association showed international flight cancellations during the holiday period rose to 7.4%, with about 785 flights scrapped more than double last year’s level.
Industry experts say remaining flights are also becoming more expensive, with fares rising sharply compared with a year ago.
Travellers Feel the Impact
Many travellers are already adjusting plans. Some who booked early have avoided disruption, but uncertainty remains widespread.
At the same time, concerns over flight reliability and rising costs are discouraging last-minute overseas trips.
Domestic Demand Surges
With international travel becoming less predictable, domestic tourism is seeing a strong boost.
Rail travel, in particular, is gaining popularity as a more reliable and affordable option. China Railway Group expects around 158 million train journeys between April 29 and May 6, up from 151 million a year earlier.
Travel agencies report strong growth in local tourism. Self-driving group tours have surged more than 50% year-on-year, while demand for independent travel packages has risen nearly 20%.
Consumer Confidence Still Uncertain
Despite strong travel numbers, it remains unclear whether spending per traveller will return to pre-pandemic levels.
China’s tourism sector is increasingly viewed as a key indicator of consumer confidence, as policymakers attempt to boost domestic demand.
Economic data shows retail sales growth continues to lag behind overall economic expansion, underscoring challenges in shifting towards a consumer-led recovery.
Policy Push to Boost Spending
To encourage travel and spending, local governments have introduced seasonal tourism campaigns focused on spring outings, flower viewing and educational trips.
Authorities have also distributed large-scale consumption vouchers and subsidies to stimulate demand during the holiday period.
(with inputs from Reuters)
