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China Tourism Sector Sees Notable Growth During May Day Holiday, Domestic Travel Up by Nearly Three and a Half Percent, Reflecting Resilience Amid Economic Challenges

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Chinese tourism industry witnessed some significant growth on account of the May Day holiday (May 1-5) with domestic travel seeing an upturn, owing to the rising popularity of domestic destinations. It must be noted that the number of tourists going on tours saw a growth of 3.49% as compared to 2025. Although no information has been provided by the government on how much people have spent over the holidays, the current trend seems to suggest that tourism-related expenditures have increased in China.

The Shift Toward Value-Driven Travel and Tourism Spending

The tourism sector is witnessing a shift in travel behavior, driven largely by value-conscious spending. As consumer confidence remains uncertain amid economic pressures, tourists are more selective in how they spend their money, particularly on non-essential services. Per capita spending during the May Day holiday remained below pre-COVID levels, with 574.1 yuan spent on average per trip in 2025, compared to 603.4 yuan before the pandemic. This trend of value-driven travel suggests that while tourism growth continues, travelers are prioritizing affordable experiences.

However, despite the cautious approach to spending, there has been growth in tourism activities such as trip bookings, lodging, and food spending, reflecting a strong demand for travel experiences that combine affordability with quality. Ben Cavender, Managing Director at China Market Research Group, noted that while there is growth in the tourism sector, it is clear that travelers remain cost-conscious, making choices that align with their budgets without sacrificing essential travel experiences.

The Rising Popularity of Domestic Tourism: A Key Growth Driver

Since the easing of COVID-19 restrictions, domestic tourism has become the driving force behind China’s tourism recovery. The May Day holiday saw major tourist attractions and cultural sites bustling with visitors as people traveled to both traditional hotspots and emerging destinations. The demand for domestic travel is increasingly concentrated on experiences that reflect personal interests, such as food tourism, photography tours, and cultural explorations. This change in how travelers choose destinations underscores a broader trend in China’s tourism growth, where people are looking for more authentic and immersive experiences.

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Shifting Travel Preferences: Personal Interests and Hobbies as Key Drivers

One notable change in travel behavior is the growing trend of selecting destinations based on personal interests. Data from Xiaohongshu (RedNote) reveals that 69% of users now choose travel destinations driven by their hobbies and interests, such as food, photography, and experiential activities. Platforms like Fliggy, Alibaba’s travel platform, have seen a surge in demand for interest-led itineraries, with experiential products outpacing the overall platform growth during the holiday.

This shift indicates a deeper transformation in the tourism sector, with travelers seeking experiences that go beyond traditional sightseeing. The focus is now on personalized travel, which aligns with the global trend of experiential tourism. As China’s tourism sector adapts to these changes, it is likely to see more demand for unique travel offerings that cater to a wide array of personal preferences.

Robust Hospitality Demand Fuels Tourism Sector Expansion

The surge in domestic travel during the holiday also contributed to growth in hospitality demand. H World Group, a leading hospitality provider in China, reported a 13.6% increase in room nights year-on-year, showing that demand for accommodation is continuing to rise in line with the growth of domestic tourism. The hospitality sector is benefitting from this tourism boom, with hotels across major cities seeing an uptick in bookings. As more travelers explore both traditional and emerging destinations, China’s hospitality industry is playing a key role in sustaining tourism growth.

A Lackluster Film Market: A Mixed Signal for Consumption Trends

While tourism growth remains strong, the holiday film market did not perform as well, highlighting the mixed nature of consumer confidence. The sluggish performance of the film market during the holiday suggests that while people are actively traveling, other forms of entertainment consumption are not recovering at the same pace. This lackluster performance in one segment of consumer spending underscores the need for continued adaptation within the tourism sector to cater to changing preferences and economic conditions.

Future Outlook: Expanding Domestic Tourism to Drive Economic Growth

Looking ahead, the outlook for China’s tourism growth remains positive, especially as domestic tourism continues to flourish. The country’s efforts to diversify tourism offerings and enhance visitor experiences are expected to attract more local and international travelers, fueling long-term growth in the tourism sector. China’s tourism industry will need to maintain a focus on value-driven travel while also promoting new destinations and innovative experiences to cater to the evolving needs of tourists.

By continuing to expand its tourism infrastructure, enhance service quality, and provide a wide range of affordable, personalized travel options, China can ensure the continued success of its tourism sector in the coming years. With the right strategies in place, domestic tourism will remain a key pillar of China’s economic recovery, driving both cultural exchange and economic growth across the country.

Tourism Growth Amid Economic Challenges

In spite of the challenges that face consumer spending, China’s tourism industry appears to be doing well because of the consistent increase in domestic travel that continues to boost economic activity in cities and regions alike. With the trend of value-based travel gaining traction all across the globe, the tourism industry in China too seems to have adapted to the changing needs of today’s tourists. Through innovation and sustainability, China’s tourism industry will surely continue to thrive into the future.

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