China Readies for Lunar New Year, Amid Worries About the Economy

TEMPO.CO, Jakarta - Travellers thronged railway stations and airports on Friday, January 24, 2025, clutching large suitcases and gifts such as boxes of fruit as they joined millions of Chinese returning to their hometowns to celebrate the Lunar New Year festival with family.

The holiday, China's biggest, this year falls between Jan. 28-Feb. 4 and marks the arrival of the Year of the Snake.

The festivities usually give a boost to businesses such as shops, cinemas, and restaurants as families enjoy time together feasting and shopping.

Authorities are especially keen for people to open their wallets this year to boost the sluggish economy, and have increased the official holiday period from seven days to eight, in keeping with last year.

Official efforts to revive weak consumption also include promoting winter-themed holiday destinations and ensuring affordable airfares throughout the country, authorities said on Friday at a State Council press conference in Beijing.

More broadly, the government has been trying to boost the economy with an aggressive raft of stimulus measures including interest rate cuts, raising basic pensions and widening trade-in programmes for consumer goods.

But businesses and travellers told Reuters they were seeing signs that people were continuing to tighten their belts in the face of a prolonged property slump and worries about job security.

A Beijing-based sales professional named Liu, who was at a railway station in the Chinese capital preparing to return to his hometown in the northeast, said concerns about the economy and employment were widespread.

He preferred not to share his full name because of the sensitivity of the issue.

"It's become even more difficult to earn money and find a job. There are many more unemployed people, and they all say it is more difficult," he said.

Qiang, a hairdresser working in central Beijing who wanted to be known only by his nickname, said that while people were still getting their hair cut for the holiday, they were being more selective about other services.

"At this time of year, we usually have many customers who come to dye their hair or get a perm. But we have fewer of those lucrative clients now," he said. "We used to have eight to 10 such clients a day during this season in normal years. But last year and this year, we only have about two to three."

China's transport ministry estimates a total of 9 billion trips will be made across the country during the 40-day travel period around the festival, up from 8.4 billion trips recorded during the same period last year.

But some people said they were foregoing the return home so they could earn more money.

"If I stay in Beijing, I will be paid triple salary for four days, I don't want to give up the opportunity to make money," said Nie, a 57-year-old who works at a sports centre in Beijing. "I started working here just three months ago, I haven't managed to make much money in 2024." She withheld her full name for privacy reasons.

OVERSEAS TRAVEL EYED

One bright spot for consumption is the cinema, with advance film ticket sales exceeding 400 million yuan ($55.24 million) by Jan. 23, according to data from ticketing platform Maoyan, the fastest-ever pre-sales for the Lunar New Year season.

Much of the demand has been driven by the film Legends of the Condor Heroes: The Gallants, starring actor and singer Xiao Zhan, who is also a brand ambassador for luxury goods companies including Gucci and Tod's.

The recovery is welcome news for the film industry, which has struggled recently, total revenues for China's box office were 22.6% lower in 2024 than in the year before.

More Chinese are also opting to go overseas on long-haul trips this year, according to Trip.com, China's largest online travel agency. The extended holiday means people will only need to take two days leave for an 11-day break.

Travel agency Qunar said that bookings for outbound flights and holiday packages on its platform had doubled from last year.

The most popular destinations are elsewhere in Asia, according to data from the World Travel & Tourism Council (WTTC) Southeast Asia remains popular, with ticketing volume for Vietnam, Singapore and Indonesia all increasing more than 50%. Tickets to Japan grew by 58%, while demand for Hong Kong nearly doubled.

($1 = 7.2412 Chinese yuan renminbi)

REUTERS | Sophie Yu and Casey Hall

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