Tourism earnings last year grew 10.5% to 5.97 trillion yuan (US$881.49), decelerating from 2017’s 15.1% gain. Tourism growth is at its slowest since 2008, when revenue growth expanded by 5.8%, according to data from the Ministry of Culture and Tourism.
China’s economic slowdown has dragged down tourism revenue growth, which fell to its lowest level last year since the global financial crisis a decade ago, official data showed on Tuesday (February 12).
Tourism earnings last year grew 10.5% to 5.97 trillion yuan (US$881.49), decelerating from 2017’s 15.1% gain. Tourism growth is at its slowest since 2008, when revenue growth expanded by 5.8%, according to data from the Ministry of Culture and Tourism.
The numbers highlight the growing caution of Chinese consumers in the fast-growing sector, which currently accounts for about 11% of GDP in 2018, the ministry said in a statement on its website.
Since late 2018, China has rolled out a flurry of stimulus measures to spur consumption, from cars to home appliances amid a broader economic slowdown as it tackles financial risk at home and navigates a trade war with the United States.
But many analysts still expect household spending to remain weak despite policy support. Consumption growth in China is “very likely” to slow further this year, as the economy cools, the commerce ministry said on Tuesday, Reuters reported.
Amid the slowdown in domestic tourism spending, however, more Chinese are opting to travel overseas, continuing a trend that has made Chinese the world’s biggest spenders on international tourism.
Last year, the growth in Chinese travellers making international tourist trips doubled to 14.7% from a year earlier to 149 million trips, the ministry added.
Retail sales during this Lunar New Year holidays also indicate slowing growth. During the week-long holidays, Chinese consumers racked up over 1 trillion yuan (US$148.3 billion) in spending, according to the Ministry of Commerce said in a notice on its website.
While this represents a rise of 8.5% from a year ago and pushed up consumer stocks on Monday, it is markedly slowing to its lowest levels since 2011. It also pales in comparison to 2018’s Lunar New Year holidays, where retail sales grew by 10.2%.