This summer, China's robust spending spree in tourism, entertainment, and sports has underscored the nation's expanding service consumption and its pivotal role in driving economic growth.
According to the Ministry of Culture and Tourism, China hosted around 37,000 cultural and tourism events across more than 4,000 categories, attracting diverse interests from night tours and summer getaways to family-friendly excursions. This surge in events reflects the nation's ability to cater to a wide array of consumer preferences.
Data from online travel services provider Ctrip reveals a 20% year-on-year increase in internet searches for hotels and flight tickets, indicating a stable rise in the domestic tourism market. Additionally, domestic car rental orders have skyrocketed by over 40% year-on-year, with single-day order volumes hitting historic highs with a 50% increase. The average car rental cost also saw a 20% rise compared to last summer, highlighting the heightened demand for self-driving tourism, particularly in northwest China.
The entertainment sector has not been left behind, with the country's box office surpassing 10 billion yuan (approximately $1.4 billion) over the weekend alone, according to ticketing platform data. This boom is partly fueled by the enthusiasm generated by the recently concluded Paris Olympic Games, which has spurred Chinese consumers to invest more in sporting activities.
E-commerce platform Meituan reports a staggering 180% increase in search volume for sports activities in July compared to June. Orders for badminton-related activities grew by 90%, while group purchases for tennis surged by 172%, showcasing a significant shift towards active and recreational spending.
A recent State Council guideline, released during the summer, outlined 20 key tasks aimed at developing service consumption. These include tapping into sectors like hospitality, elderly care, and tourism, fostering new consumption types and scenarios, relaxing market access, and providing enhanced policy support to sustain this growth.
Experts remain optimistic about the future of service consumption in China. Zhu Min, former deputy managing director of the International Monetary Fund, stated, \"China's next round of reform priorities, including increasing national income levels with reasonable distribution policies, continuing the urbanization process, as well as improving social insurance, education, and medical systems, promise greater demand for service consumption.\"
Official data indicates that in the first half of the year, retail sales of services in China increased by 7.5% year-on-year, outpacing goods by 4.3 percentage points. Moreover, service consumption now accounts for 45.6% of the country's per capita consumer spending.
Looking ahead, a meeting on priorities for the second half of 2024 emphasized that service consumption will be a major driver in the expansion and upgrading of consumption, positioning China for sustained economic resilience and growth.
Reference(s):
Summer spending boom showcases China's service consumption potential
cgtn.com
