Restaurants, shopping malls and cinemas nationwide have reopened and reported burgeoning foot traffic, a sign that experts believe bodes the revival of the country’s consumption market in 2023. — AP
BEIJING: With China’s latest optimisation of Covid-19 response, restaurants, shopping malls and cinemas nationwide have reopened and reported burgeoning foot traffic, a sign that experts believe bodes the revival of the country’s consumption market in 2023.
In Beijing, hordes of people crowded outside restaurants in commercial districts, waiting for seats during peak hours.
Popular diners have posted over 80% of customer traffic compared with regular times, with some even seeing a full house.
The same thing goes for cinemas. Cinema staff confirmed that attendance at some movie theatres in Beijing has returned to 75% of the regular level.
The cinemas are expected to witness more moviegoers with the lunar new year and spring festival holiday approaching.
The consumption recovery momentum is further boosted by the ice-snow industry boom in the first snow season after the Beijing 2022 Olympic Winter Games concluded.
Data from online travel service provider Trip.com Group showed that reservations for hotels related to skiing venues in Beijing surged 99% week-on-week from Dec 19 to 23.
Due to the lingering Covid-19 pandemic, China’s consumption market had taken a hit.
In the first 11 months of last year, the country’s retail sales of consumer goods edged down 0.1% year-on-year.
The catering industry and other contact-based sectors had taken the heaviest losses.
To better coordinate anti-virus efforts and economic development, China has optimised its Covid-19 response policies dynamically.
In its latest move, China announced to downgrade the management of Covid19 from Jan 8, 2023, treating it as a Class B infection rather than a more serious Class A infection.
The adjustments of China’s Covid-19 response will effectively stimulate the recovery of consumption, with catering consumption driven by local demand possibly taking the lead in resuming.
Hospitality, tourism and aviation consumption driven by non-local demand would follow, said Wu Yifan, deputy head of a research institute under Hua Chuang Securities.
The continued optimisation of Covid-19 policies would significantly propel consumption growth this year, said Wu Chaoming, chief economist with Chasing International Economic Institute. — China Daily/ANN
