BEIJING — Millions of Chinese travelers packed railway stations and airports on Friday as they headed home to celebrate Lunar New Year, China’s biggest annual holiday, which runs from January 28 to February 4 this year, marking the Year of the Snake.
The holiday typically fuels a surge in spending at businesses like restaurants, cinemas, and shops as families gather to feast, shop, and celebrate. Authorities are hoping this year’s festivities will give the struggling economy a much-needed boost.
To encourage spending, the official holiday period has been extended to eight days for a second year. Efforts also include promoting winter-themed travel destinations and ensuring affordable airfares, according to a State Council press conference on Friday.
Economic Challenges Cloud Festivities
Despite these measures, signs of economic unease remain evident. China has been battling a prolonged property slump and rising unemployment, dampening consumer confidence.
Liu, a sales professional in Beijing, shared his perspective while preparing to travel home:
“It’s become even more difficult to earn money and find a job. Many more people are unemployed, and they all say it’s harder now,” he said, declining to give his full name.
Similarly, Qiang, a Beijing hairdresser, noted a decline in demand for premium services like hair dyeing and perms during what is typically a lucrative season.
“We used to have eight to 10 such clients a day this time of year. Now, it’s only about two or three,” he said.
Travel Surge Expected, But Some Stay for Work
China’s transport ministry estimates that 9 billion trips will be made during the 40-day travel period surrounding the festival, up from 8.4 billion last year.
However, some workers are forgoing trips home to take advantage of holiday pay incentives. Nie, a 57-year-old employee at a Beijing sports center, said she chose to stay in the capital to earn triple pay for four days.
“I only started working here three months ago, and I haven’t made much money yet,” she said.
Bright Spots: Cinemas and Overseas Travel
The film industry is seeing a glimmer of hope, with pre-sales for Lunar New Year films surpassing 400 million yuan ($55.24 million) by January 23—the fastest on record. The highly anticipated Legends of the Condor Heroes: The Gallants, starring Xiao Zhan, has been a major driver of demand.
Overseas travel is also rebounding, with Trip.com reporting a surge in bookings for long-haul trips. Popular destinations include Southeast Asia (Vietnam, Singapore, Indonesia), Japan, and Hong Kong, where ticket demand has nearly doubled.
Outlook for the Year of the Snake
While some economic indicators remain concerning, the festive season offers a chance for families to reconnect and for businesses to capitalize on renewed consumer activity.