Lunar New Year Travel Surge Expected in China
China’s National Development and Reform Commission projects that around 9.5 billion trips will be taken during this year’s Lunar New Year travel rush, which spans a 40-day period.
The Lunar New Year, often referred to as the Spring Festival, marks the country’s peak travel season and is considered the largest annual human migration in the world. This year, the holiday falls on February 17th, initiating the Year of the Horse according to the Chinese zodiac. However, travel typically begins well before the actual date, hence the extended travel season that officially kicked off on February 2nd.
State planners have forecasted about 540 million rail tickets to be sold, alongside 95 million air travel trips. The remaining journeys will likely be made by road and boat as part of the projected total.
The Ministry of Transport revealed that 1.4 billion interregional passenger journeys were recorded from February 2 to 8, which included 86 million rail, 16 million air, and 4.9 million water travels.
This year’s official holiday period is notably longer, spanning nine days. The Chinese government is hopeful that this extended holiday will promote increased travel and spending, aiming to boost domestic consumption as the economy recovers from pandemic setbacks.
However, some feedback from citizens has been less than positive. Reports indicate that while initial travel bookings have been strong, many consumers are still concerned about the uncertain economic landscape and prefer saving to spending.
Travelers have expressed anxiety over navigating crowded transport hubs, especially amid reports of record-high sales for tickets. Some have voiced frustrations about ticket availability and prices, with one passenger lamenting how purchasing an airline ticket has become more stressful compared to last year.
“Flights back home are selling out quickly. If you don’t buy early, prices can fluctuate wildly,” noted one air traveler.
Another passenger preparing for a long train journey mentioned feeling that the situation has worsened since last year. “It’s hard to make money these days,” they remarked. While faster trains are available, he found them beyond his budget.
For many, the priority seems to be reuniting with family rather than indulging in lavish vacations. One young woman at a train station pointed out the growing difficulty for extended families to gather, stating, “Since I’ve started working, we hardly get such long holidays. That’s why the Spring Festival is crucial to us.”
As international analysts monitor China’s luxury market, they see it as a sign of how well the holiday season can boost consumer confidence. This year’s zodiac prediction is particularly interesting—it’s the Year of the Fire Horse, which is supposedly linked to boldness and adventure, potentially leading to increased spending.
Moreover, China’s central bank recently expressed confidence in the consumer economy, injecting 600 billion yuan (about $86.4 billion) into the money supply to support spending over the holiday.
Financial analysts in China anticipate a cash outflow of up to 900 billion yuan during the extended Lunar New Year, especially with travelers needing cash and the customary giving of red envelopes during this festive period.
