Boom in summer spending highlights potential of China's service consumption
China's summer spending surge has highlighted significant consumption increases in tourism, entertainment, and sports, showcasing the growth potential of service consumption and its role in the nation's overall economic development.
TroibNews 
This summer in China, there has been a surge in spending across various sectors, particularly in tourism, entertainment, and sports, pointing towards the significant potential of service consumption to bolster the country's economic growth.
During this period, China has orchestrated approximately 37,000 events related to culture and tourism, spread across more than 4,000 categories. These events include night tours, summer retreats, and activities suitable for families, as reported by the Ministry of Culture and Tourism.
According to the data provided by Ctrip, a leading online travel agency, there has been a consistent growth in domestic tourism, with searches for hotels and flights increasing by over 20 percent compared to the previous year.
Rental car orders domestically have seen a boost of over 40 percent year on year, with a record rise in daily orders by 50 percent on Ctrip. Additionally, the average cost of renting a car has escalated by 20 percent from last summer.
"The robust demand for car rentals mirrors the surge in travel during the summer vacation," stated Song Zhen, vice president of Ctrip Group. He added, "the self-driving tourism market is gaining popularity, especially in northwest China."
Meanwhile, China’s film industry experienced a lucrative season with box office takings surpassing 10 billion yuan (about $1.4 billion) over just one weekend, as per the data from ticketing platforms.
The enthusiasm around the Paris Olympic Games this summer has also spurred an increase in spending on sports activities among Chinese consumers. Data from the e-commerce giant Meituan indicated that July saw a 180 percent increase in sports activity searches compared to June. Specifically, orders for badminton rose by 90 percent year on year, and group purchases for tennis activities soared by 172 percent.
A guideline issued by the State Council amidst the peak summer season has outlined 20 essential initiatives aimed at developing service consumption. These initiatives focus on exploring the potential of sectors such as hospitality, domestic services, elderly care, and tourism, introducing new consumption models, easing market entry, and enhancing policy support for these services.
Optimism regarding the future of service consumption in China is on the rise among experts, driven by an increasing demand for services related to education, entertainment, tourism, and culture as China progresses towards a higher income bracket. Zhu Min, former deputy managing director of the International Monetary Fund, commented, "China's next round of reform priorities, including increasing national income levels with reasonable distribution policies, continuing the urbanization process, as well as improving social insurance, education and medical systems, promise greater demand for service consumption."
As revealed by the latest official statistics, service retail sales in China grew by 7.5 percent in the first half of the year, outpacing the sales growth of goods by 4.3 percentage points. Additionally, service consumption now composes 45.6 percent of total per capita consumer spending in the country.
A strategic meeting in late July discussing the focus for the second half of 2024 highlighted that service consumption is expected to play a crucial role in both expanding and improving consumption patterns.
Emily Johnson for TROIB News
During this period, China has orchestrated approximately 37,000 events related to culture and tourism, spread across more than 4,000 categories. These events include night tours, summer retreats, and activities suitable for families, as reported by the Ministry of Culture and Tourism.
According to the data provided by Ctrip, a leading online travel agency, there has been a consistent growth in domestic tourism, with searches for hotels and flights increasing by over 20 percent compared to the previous year.
Rental car orders domestically have seen a boost of over 40 percent year on year, with a record rise in daily orders by 50 percent on Ctrip. Additionally, the average cost of renting a car has escalated by 20 percent from last summer.
"The robust demand for car rentals mirrors the surge in travel during the summer vacation," stated Song Zhen, vice president of Ctrip Group. He added, "the self-driving tourism market is gaining popularity, especially in northwest China."
Meanwhile, China’s film industry experienced a lucrative season with box office takings surpassing 10 billion yuan (about $1.4 billion) over just one weekend, as per the data from ticketing platforms.
The enthusiasm around the Paris Olympic Games this summer has also spurred an increase in spending on sports activities among Chinese consumers. Data from the e-commerce giant Meituan indicated that July saw a 180 percent increase in sports activity searches compared to June. Specifically, orders for badminton rose by 90 percent year on year, and group purchases for tennis activities soared by 172 percent.
A guideline issued by the State Council amidst the peak summer season has outlined 20 essential initiatives aimed at developing service consumption. These initiatives focus on exploring the potential of sectors such as hospitality, domestic services, elderly care, and tourism, introducing new consumption models, easing market entry, and enhancing policy support for these services.
Optimism regarding the future of service consumption in China is on the rise among experts, driven by an increasing demand for services related to education, entertainment, tourism, and culture as China progresses towards a higher income bracket. Zhu Min, former deputy managing director of the International Monetary Fund, commented, "China's next round of reform priorities, including increasing national income levels with reasonable distribution policies, continuing the urbanization process, as well as improving social insurance, education and medical systems, promise greater demand for service consumption."
As revealed by the latest official statistics, service retail sales in China grew by 7.5 percent in the first half of the year, outpacing the sales growth of goods by 4.3 percentage points. Additionally, service consumption now composes 45.6 percent of total per capita consumer spending in the country.
A strategic meeting in late July discussing the focus for the second half of 2024 highlighted that service consumption is expected to play a crucial role in both expanding and improving consumption patterns.
Emily Johnson for TROIB News
