Visa-free travel abroad and free toll roads at home are expected to fuel a surge in travel by Chinese citizens during an extra-long holiday starting this week, in what analysts call a boon for the service economy.
Total trips outside mainland China are forecast to reach between 8 million and 8.4 million – more than double the 3.8 million recorded for the holiday in 2024 – according to travel marketing and technology company China Trading Desk on Monday.
Demand is “surging” for visa-free destinations such as Malaysia, Singapore and Thailand, the firm said. Long popular with Chinese tourists, all three have scrapped visa requirements since the pandemic.
Russia has also seen a rise in bookings by Chinese citizens following the introduction of a visa exemption rule in September, according to Fliggy, Alibaba Group Holding’s travel platform. Alibaba owns the South China Morning Post.
South Korea, a perennially popular spot for Chinese travellers, rolled out visa-free entry for tour group members on September 29 – a move that could have an “impact”, business consultancy Dragon Trail International said in a September 23 travel sentiment report.
The annual holiday, dubbed “golden week”, will last longer than usual this year. Coinciding with both the Mid-Autumn Festival and National Day, it runs from October 1 to 8.
The extended break will give travellers a head start and the chance to “cleverly” combine annual leave with the holiday, Fliggy said.
Airlines, hotels, car rentals and packaged tours are attracting more business as a result, Fliggy said. China’s US$41.1 billion hospitality market is expected to continue growing through 2030, according to market research firm Mordor Intelligence.
A growing number of overseas travellers can also enter China visa-free under measures aimed at stimulating the economy. But many may delay visiting the country until after October 8 to avoid crowds and higher prices, said Steven Zhao, chief executive of China Highlights, an online travel agency.
Still, free toll roads and expanded train services, especially during the holiday, should attract more domestic tourists than last year, Zhao said.
China has waived road tolls during public holidays since 2012 to spur travel and consumption. Self-driving trips, including those with rented cars, are expected to hit 1.87 billion this year – nearly 80 per cent of the total, according to domestic media outlets.
Meanwhile, railway authorities are adding extra capacity through high-speed lines and night trains. More than 90 million tickets had been sold on the official online booking platform as of Sunday.
Long-distance tours within China are up 53 per cent while car rentals have increased 93 per cent over 2024 levels, according to Fliggy. Hybrid trips, which combine tourism and family visits, are also expected to increase.
“Notably, multi-destination travel is thriving, particularly among high-speed trains and a combination of flights and trains,” the firm said in a statement, noting that domestic tourists have a preference for theme parks, sporting events and cultural experiences this year.
Chinese spenders are “under-consuming big time” amid economic uncertainty, but are making exceptions for travel – especially older generations eager to learn about other countries, according to independent economist Andy Xie.
“That’s life – before you die, you’re supposed to do these things,” Xie added.
Despite the near-term outlook for China’s tourism industry looking promising, the world’s second-largest economy remains burdened by a lingering property crisis, unemployment and trade tensions with the United States. -- SOUTH CHINA MORNING POST
