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Tourists visit the old city of Pingyao on the second day of the Labor Day holiday on May 2, 2025 in Jinzhong, China Channsi Province.

VCG | China Visual Group Gety pictures

This report from this week’s release from the CNBC’s Connection newsletter, which brings you visions and analyzes about what pays the second largest economy in the world. Every week, we will explore the largest business stories in China, and make a decrease in market movements and help you prepare for the next week. Like what you see? You can subscribe here.

The big story

If people spend in China, it is likely to be in travel – and companies want a slice of it.

After 10 years of the only hostel in the city of Datong, China, Fares from Knight suddenly gained six new competitors in one year, according to the founder of Daniel Huang. He said that his 26 -room place was seized for the Day of Workers’ holiday in May, which officially fled from Thursday to Monday.

“The hotels open everywhere in Datong,” he said, noting that one of the non -brand operators raised his price for the holiday by more than five times to more than 1000 yuan ($ 140) per night.

Increased interest in history and culture helps. Datong popularity Yongang Buddhism Caves The UNESCO Heritage site has risen about 1500 years ago – after its statues in the successful video game Black Legend: Wooke’s chest last summer.

More than 43,700 people visited the caves on May 1 aloneIncluding more than 10 % over the previous year, according to government media. Grand Canyon The average visitor number of 13,477 per day last year.

Ashley Dudinoc, founder of Zozan, a marketing consultant in China, said the latest holiday offers are still very Chinese tourists are very interested in museums and other cultural activities.

“What this means for international brands or local brands is that cooperation with these cultural symbols is still a very important part of communicating with the consumer,” she said.

On the national level, China mentioned 314 million local tourist trips During the workers ’day in May, the steady increase in recent years and over the pre -government level continued 195 million in 2019. The government has Vacation In recent years, the local population has given more time as companies usually offer employees only a handful of paid holidays.

Ride the short train

Huang said that the recently created Chinese transport infrastructure encourages the local population to visit smaller cities such as Datong. He pointed out that before the Covid-19 pandemic, travelers were forced to take a six-hour train from the capital of Beijing to Datong.

Now, a high -speed train between cities (about 20 dollars per ticket in one direction) takes less than two hours, with dozens of departure times throughout the day. The train road was opened in December 2019.

Tourists in China turned into less popular and remote destinations It tends to be cheaper than visiting big cities. During the last holidays in May, trips to rural areas increased by almost 20 % from last year, with interest in the cultivated topic, and rising, According to the reservation, Trip.com.

Retail sales, including food, It increased by 6.3 % during the holiday A year ago, according to official figures. Tourism revenues increased by 8 % to 180.27 billion yuan.

“Despite fears of the opposite winds of the macroeconomic economy, the power of travel numbers tells us that consumer morale is flexible,” said Jacob Cook, co -founder and executive director of WPIC Marketing + Technologies. The company helps foreign brands – such as Vitamix, which is clinical – online sale in China and other parts of Asia.

“Chinese consumers give priority to spending more importantly – and now, this includes travel,” he said.

When the Chinese consumers were asked about the place where they expected their spending this year, the existing travel, followed by groceries, according to a survey of TD Cowen Financial Services Company in February and published last month.

However, in a sign of the remaining uncertainty, fewer answers said last year that they have put travel plans for the next six months. The survey covered 2000 Chinese population.

The sales of lured retail goods have remained since the Covid-19s, an increase of only 3.5 % last year, according to official data. The services sector, including tourism, sports and children’s care, witnessed 6.2 % faster growth last year. China began reporting retail sales a year in July 2023.

“The Future of Tourism”

In the meantime, Chinese cities went up to attract tourists, both through Short videos on social mediaVirtual reality Experiences Or the advanced light that appears across the skyscrapers.

Durainoc pointed out that some cities, such as the panda axis in Chengdu, began to use drones to connect food inside the picturesque landscape gardens, or renting long -distance hiking support.

“We will essentially see much of what the future of tourism will appear, and China is very tested during the May holiday,” she said, noting that the places that have invested a lot are witnessing strong tourist numbers.

For example, Chengdu claimed An increase of 6.2 % on an annual basis on tourist trips During the holiday to 15.52 million. This is nearly three quarters of the city’s population 21.4 millionStarting from 2023.

Huang said that the effects of social media, as well as oral comments on cleanliness and safety, help Chinese cities attract foreign travelers.

Huang said that his descent serves international visitors in the first place before Covid, and the share of foreign guests has been modest to about a fifth of customers. He said that local visitors tend to focus their travel during public holidays, while the trips made by foreign tourists more spacing.

China has sought its visa -free policies in the past two years to attract foreign tourists. The citizens of the United States, the United Kingdom, Canada and more than 50 other countries can now Stay in China for 10 days without a visaWhile people from Japan, South Korea and many European countries can Visit up to 30 days.

Traveling to China to China on Labor Days in May increased by more than 40 % from last year, Hostel World said. The data showed that Chungzheng, Yangshu and Gulin are popular with Beijing and Shanghai.

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You need to know

The United States and China will finally talk about trade. It is not a presidential invitation, but both sides have confirmed that the Chinese Deputy Prime Minister is LiFeng, who is the Big Beijing official in economic and commercial issues in China and the United States, Will. He meets with his counterparts in the United States While visiting Switzerland later this week.

Ten people died after four tourist boats were overturned in the southern western Chinese province of Gitcho. On Monday, Deputy Prime Minister Zhang Jojing visited the site of the accident, which was attributed by government media to “Surprising strong winds

The National Health Committee in China is investigating the hospital scandal. InvestigationInvolve a great doctor in a Commercial Hospital in BeijingIt sparked a discussion on Chinese social media about The potential role of communications In obtaining very desirable health care sites.

The e -commerce site at Taobao’s Taobao joined the birth on request. The company is implementing the delivery of food, clothes and other products, a few days after JD.com and the Meituan Food Delivery Company in space. Taobao claimed that she had received More than 10 million orders in one day.

In the market

Chinese stocks and Hong Kong rose on Wednesday after the Popular Bank of China and financial organizers announced Comprehensive plans to reduce major interest rates Because it strives to support growth.

China will reduce the re -purchase of the opposite for seven days by 10 basis points to 1.4 % of 1.5 %. The central bank will also reduce the rate of reserve requirements by 50 basis points.

China’s main mainland CSI 300 It rose 0.44 % while Hong Kong Hang Singh Fahras – Which includes major Chinese companies – increased by 1.5 % from 10:30 am local time. CSI 300 has lost about 2.8 % while the Hang Seng index has gained more than 14.6 % so far this year.

The return of Chinese government bonds decreased for 10 years a little by 1.63 %.

The Chinese yuan abroad strengthens 0.18 % against Greenback to 7.2227.

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The performance of the Shanghai complex during the past year.

Upcoming

May 7-10: President Xi Jinping pays a government visit to Russia

May 9: Import and export data in China for the month of April

May 10: Consumer Prices Index in China and Producers Index for April



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