What’s new: China’s domestic travel this summer is poised to surpass 2019 levels, fueling hopes for a stronger consumption rebound in the country’s post-pandemic recovery.
An estimated total of 760 million passenger trips will be made via railways from July 1 to Aug. 31, according to figures released Saturday by China State Railway Group Co. Ltd., up from the 735 million trips made during the same period in 2019.
Around 1.83 million trips are expected to be made via airplane, while an estimated average of 13,600 domestic flights will operate daily during the peak travel period, up 7% and 11% respectively from 2019 levels, according to a Civil Aviation Administration official at a press briefing last month.
The background: The forecast for travel volume is a positive sign for China’s domestic consumption, which has lost momentum since the country’s reopening from “zero Covid.”
Domestic travel spending during the three-day Dragon Boat Festival holiday in June fell short of 2019 levels, and also paled in comparison to the five-day Labor Day holiday in May.
There’s mounting concern that China’s economy is experiencing a slowdown and several investment banks have downgraded their GDP growth forecasts for the year, though most of them expect Beijing to still meet its relatively conservative target of around 5%.
Related: China’s Holiday Spending Trails Pre-Pandemic Levels
Contact reporter Kelsey Cheng (kelseycheng@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)
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