“Consumers are willing to travel farther, but they are still spending selectively,” said Forthright Securities’ Liao.
Domestic hotel data also pointed to restrained spending. Average revenue per available room, a key industry measure, slipped 0.5 per cent from a year earlier over Oct1 to Oct 5, while average daily room rates fell about 2 per cent, Jefferies analysts said in a note on Wednesday, citing InnHome data.
FEWER MOVIEGOERS
The holiday cinema market showed little sign of a broader spending revival.
The National Day holiday is typically one of China’s biggest box-office periods alongside the Chinese New Year. Yet revenue during this year’s holiday totalled just 1.16 billion yuan, according to data from Chinese film industry analysis platform Maoyan, down 36.6 per cent from a year earlier and the lowest National Day holiday box office since 2014.
Takings in the first four days of the holiday were worse than during the COVID-19 pandemic, Citi analysts said in a note on Monday, blaming a “lack of blockbusters” and holidaymakers choosing to travel instead of going to the cinema.
Travel agencies were more optimistic about outbound overseas demand beyond the holiday period, a sign that Chinese consumers are confident to spend money in some instances.
Spring Tour, the tourism arm of Shanghai-based Spring Group, said visa application volumes in September more than doubled from a year earlier. Popular destinations included Italy, Spain, France, Australia, the United States and Canada.
The company said many travellers complete visa applications well before departure and plan to travel after major holidays to avoid peak-season crowds.
“Demand for outbound travel is expected to continue gaining momentum in the fourth quarter and through next year,” the company said.