China's Golden Week reveals cautious consumer spending despite travel surge

China's Golden Week, a 13-day holiday period following the Mid-Autumn Festival and China's National Day, revealed cautious consumer spending despite an increase in travel. Ya Xi, a young woman who returned to Shanghai after her trip to Southeast Asia, admitted to staying up all night for a cheaper ticket, indicating she was being more careful about her budget.

Xi, who earns less this year, lowered her budget for this year's Golden Week to 5,000 yuan (about €660), with the flight being her largest expense. Early data showed moderate spending per traveler and flat passenger traffic, with traffic rising just 0.1% year over year during the first four days of the holiday. Experts noted that Chinese consumers are becoming increasingly selective, spending more on experiences and economizing elsewhere.

The Chinese government attempted to boost spending by providing coupons worth more than 310 million yuan (€41.2 million), but analysts remained unconvinced about their effectiveness. The wealth gap in Chinese society was identified as a fundamental issue, with the majority of Chinese people not having savings. Despite tightened travel restrictions, international travel among Chinese tourists continued to grow, though not by much.