Global Times | Holiday spending ignites China's consumer market
China's combined National Day and Mid-Autumn Festival holiday, spanning eight days this year, delivered a powerful boost to consumer spending, with services consumption - including tourism, culture and sports - surging ahead as a dynamic new engine for growth, latest data showed on Thursday.
Value-added tax invoice data released by the State Taxation Administration (STA) showed that daily average sales revenue across consumption-related sectors during the holiday period rose 4.5 percent year-on-year, the Xinhua News Agency reported on Thursday.
A breakdown revealed that overall goods consumption grew 3.9 percent year-on-year, while services consumption surged 7.6 percent, underscoring a significant shift in China's consumption patterns.
Digital products and vehicles led the charge in merchandise sales, with telecommunications equipment like mobile phones up 18.8 percent, fueled by policy subsidies and the peak sales season in September and October, and auto sales climbing 12.6 percent. Rising gold prices drove jewelry sales to a 41.1-percent increase, official data showed.
The vitality of the extended holiday was further highlighted by the unprecedented movement of people. Data from the Ministry of Transport on Thursday showed that total cross-regional passenger trips between September 30 and October 7 reached a cumulative 2.433 billion, setting a new record, according to Xinhua.
The tourism sector stood out as a primary beneficiary of the massive mobility. The Ministry of Culture and Tourism announced that the holiday market remained stable and orderly, with 888 million domestic trips made nationwide.
Domestic tourism spending reached 809.01 billion yuan ($113.9 billion), up 108.2 billion yuan from a year earlier.
The extended holiday, one day longer than the 2024 National Day break, combined with targeted stimulus policies, was cited by analysts as creating a synergistic effect that amplified spending and solidified the holiday's role as a critical window for observing the resilience of Chinese economy.
Retail and dining data from the Ministry of Commerce (MOFCOM) corroborated the broad-based recovery. During the long holiday, sales at key monitored retail and catering enterprises grew 2.7 percent year-on-year. In a sign of revitalized street-level commerce, the business revenue of 78 key pedestrian streets monitored by the ministry increased by 6.0 percent between October 1 and October 7.
"This year's dual-festival consumption market exhibited a positive trend of steady recovery alongside structural upgrades," Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Thursday.
Under the dual drivers of sustained pro-consumption policies and innovative supply from businesses, consumption vitality has been further unleashed, contributing to expanding domestic demand, Wang said.
The strength of services consumption was particularly evident in the detailed tax revenue data. Tourism-related services sales saw a robust 8.5 percent year-on-year increase. Within this category, leisure and sight-seeing activities exploded by 17.6 percent. The demand for unique accommodations also surged, with revenue from homestays growing 9.7 percent as travelers sought out localized experiences.
The momentum was partly driven by local offerings of diverse cultural and tourism products, services, and events, alongside consumer-friendly measures. The Ministry of Culture and Tourism reported more than 29,000 cultural and tourism events held nationwide, with more than 480 million yuan in consumption subsidies distributed.
Beyond tourism, other services sectors also posted impressive gains. Tax data showed that sales revenue for cultural and art services jumped 18.6 percent year-on-year. And, sports and fitness-related spending saw strong growth: revenue from sports venue services increased by 12.5 percent, while that from fitness and leisure activities rose 15.4 percent.
Online platforms also buzzed with activity. Gaode Map, an Alibaba service, reported a record-breaking 360 million daily active users on October 1, according to a statement from the company on Thursday.
The robust performance of the services sector aligns perfectly with national policy priorities. In late September, nine Chinese departments, including the MOFCOM, issued a notice on measures to expand services consumption, urging multi-department efforts to enhance high-quality supply and broaden demand to expand the sector.
Wang noted that traditional consumption domains are being revitalized through quality improvements and the creation of immersive scenarios, while new demand drivers, such as green and healthy products, smart technology, and cultural experiences, are rapidly gaining prominence.
A virtuous cycle is forming between the evolving consumer market and industrial upgrading, he said. "By fostering innovative supply, businesses are not only meeting diverse and sophisticated consumer demands but are also propelling the entire industrial chain toward higher value-added segments, laying a more sustainable foundation for China's future economic growth," he added.