China’s May Day Holiday Consumption Booms, Driven by Robust Demand and Policy Support

China’s consumer market witnessed a vibrant surge during the recent May Day holiday, with sales revenue in consumption-related sectors rising 14.3% year-on-year, according to value-added tax (VAT) invoice data released by the State Taxation Administration on May 6. The data reflects a further release of consumption potential, underpinned by booming demand across multiple sectors and effective policy support.

China Daily reported that tourism, entertainment, cultural and sports services saw a notable upsurge in consumption. Sales revenue from tourism, sightseeing and entertainment services increased by 21.2% year-on-year, with travel agency services and leisure sightseeing activities growing by 23.8% and 26.2% respectively, driven by a surge in outbound leisure travel.

Consumers also showed strong enthusiasm for cultural and sports activities, as sales revenue of cultural services and sports services jumped 42.3% and 44.1% year-on-year. This growth highlights the rising demand for spiritual and cultural consumption among Chinese residents.

Life services maintained sound growth momentum during the holiday. China.org.cn noted that sales revenue of residential household services rose 14.2% year-on-year, with laundry services, residential pet services and automobile repair and maintenance services increasing by 38.1%, 49.5% and 12.6% respectively. Health-related consumption also gained traction, with sales of residential health services up 40.1% year-on-year.

Catering and accommodation consumption grew rapidly, boosted by distinctive catering activities launched in many regions. Xinhua News Agency stated that catering sales revenue increased by 31.4% year-on-year, with snack services, bar and teahouse services surging 41.6% and 51.5% respectively, while full-service restaurant sales rose 26.8%. Homestay services, integrating diversified services and unique experiences, also grew by 13.3% year-on-year.

Commodity consumption also heated up, with general retail sales revenue increasing by 12.4% year-on-year. Offline retailers such as supermarkets enhanced consumer experience by optimizing consumption scenarios, driving their sales up 15.6% year-on-year. High-quality goods were in strong demand, with cosmetics, gold and silver jewelry, and arts and crafts sales rising 55.8%, 28.8% and 57.4% respectively.

Looking ahead, with continuous policy measures to promote service consumption taking effect, China’s consumer market is expected to maintain its upward momentum. The upgrading of service consumption and the growing demand for high-quality goods will further unleash consumption potential, injecting strong impetus into China’s high-quality economic development. The Ministry of Commerce is likely to introduce more targeted policies to support the consumption market, fostering sustained and healthy growth.