China’s summer spending frenzy has showcased the immense potential of the country’s service consumption sector, marking notable growth in tourism, entertainment, and sports. This surge highlights the significant role of service consumption in driving the nation’s overall economic development.
According to the Ministry of Culture and Tourism, this summer saw approximately 37,000 cultural and tourism events across more than 4,000 categories, catering to popular interests such as night tours, summer getaways, and family-friendly excursions. The diverse offerings attracted millions of visitors, boosting local economies and enhancing cultural exchange.
Data from online travel services provider Ctrip indicates a stable rise in China’s domestic tourism market. Internet searches for hotels and flight tickets increased by over 20 percent year on year, reflecting heightened travel enthusiasm among residents of the Chinese mainland. Domestic car rental orders climbed by more than 40 percent compared to the previous year, with single-day order volumes hitting historic highs—a 50 percent year-on-year increase. The average car rental cost rose by 20 percent compared to last summer.
“The robust demand for car rentals mirrors the surge in travel during the summer vacation,” said Song Zhen, vice president of Ctrip Group. “The self-driving tourism market is gaining popularity, especially in northwest China, where travelers seek flexibility and unique experiences.”
The country’s box office also heated up, surpassing 10 billion yuan (about $1.4 billion) over a recent weekend, according to ticketing platform data. Blockbuster releases and a growing appetite for cinematic experiences contributed to this milestone.
Chinese consumers have shown increased interest in spending on sporting activities this summer, buoyed by the just-concluded Paris Olympic Games. Data from e-commerce platform Meituan reveals that in July, the search volume for sports activities surged by around 180 percent from June. The order volume for badminton grew by 90 percent year on year, while group purchase orders related to tennis soared by 172 percent.
Amid this summer heat, a State Council guideline outlined 20 key tasks for developing service consumption. These tasks include tapping the potential of services such as hospitality, domestic services, elderly care, and tourism; fostering new types of consumption and consumption scenarios; relaxing market access; and providing more policy support for service consumption.
Experts are optimistic about the expansion of service consumption in China. As the country moves toward a high-income stage, demand for services like education, entertainment, tourism, and culture is on the rise.
“China’s next round of reform priorities, including increasing national income levels with reasonable distribution policies, continuing the urbanization process, and improving social insurance, education, and medical systems, promise greater demand for service consumption,” said Zhu Min, former deputy managing director of the International Monetary Fund.
Official data show that in the first half of the year, the Chinese mainland’s retail sales of services increased by 7.5 percent year on year, 4.3 percentage points higher than that of goods. Meanwhile, service consumption accounted for 45.6 percent of the country’s per capita consumer spending.
According to a tone-setting meeting on priorities for the second half of 2024 held in late July, service consumption will be a major driver in the expansion and upgrading of consumption.
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Summer spending boom showcases China's service consumption potential
cgtn.com
