Chinese travel more during Dragon Boat holiday but spending lags
Consumption in the world's second-largest economy has suffered amid sputtering growth and a prolonged property crisis, with uncertainty from the US-China trade war also weighing on consumer confidence.
The latest data painted a mixed picture for China's consumer economy. Travellers took an estimated 119 million domestic journeys from Friday to Monday, up 5.7 per cent from the same holiday period last year, according to the Ministry for Tourism and Culture.
Overall spending over the period rose to 42.73 billion yuan (S$7.7 billion), a year-on-year increase of 5.9 per cent, but the average amount spent per traveller was a little under 360 yuan, according to Reuters calculations, remaining stubbornly below 2019 levels of around 410 yuan per trip.
The Dragon Boat Festival took place from May 31 to Jun 2 – and is celebrated throughout the country with local dragon boat races. Many people take the opportunity to have short holidays, crowding train stations and airports around the country.
Cross-border journeys rose 2.7 per cent to 5.9 million, with 231,000 foreign nationals entering the country visa-free during the holiday, broadcaster CCTV said late on Monday.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
China has been expanding its visa policy, with citizens of 43 countries granted visa-free access, while visa-free transit for up to 240 hours in China is available for 54 countries.
Rail lines saw the peak of return passenger flow on Jun 2, with authorities adding 1,279 trains to more than 11,000 passenger trains overall across the country, while road travel was up 3 per cent year on year, with 600 million car journeys recorded, mostly travelling short distances.
Chinese also boosted spending on entertainment over the holiday, with cinema box office revenue reaching 460 million yuan, surpassing last year's 384 million yuan, according to data from online ticketing platform Maoyan.
Tom Cruise's latest movie Mission: Impossible – The Final Reckoning topped charts, and generated 228 million yuan, half of the total revenue during the holiday period, which was seen as a positive indicator for the upcoming summer season. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
32 minutes ago
- Straits Times
Russia expects India to keep buying its oil and seeks China-India-Russia talks
Sign up now: Get ST's newsletters delivered to your inbox Roman Babushkin, charge d'affaires at the Russian embassy in India, attends a press conference in New Delhi, India, August 20, 2025. REUTERS/Adnan Abidi NEW DELHI - Russia expects to continue supplying oil to India despite warnings from the United States, Russian embassy officials in New Delhi said on Wednesday, adding that Moscow hopes trilateral talks will soon take place with India and China. U.S. President Donald Trump has announced an additional tariff of 25% on Indian goods exported to the U.S. from August 27, as a punishment for buying Russian oil, which constitutes 35% of India's total imports compared with a negligible 0.2% before the Ukraine war. "I want to highlight that despite the political situation, we can predict that the same level of oil import (by India)," Roman Babushkin, the charge d'affaires at the Russian embassy in India, told a press briefing. He predicted India and Russia would find ways to overcome Trump's latest tariffs in their "national interests". Trade talks between India and the U.S. broke down over the opening up of India's vast farm and dairy sectors, as well as its purchases of Russian oil. The total tariff announced on Indian goods entering the U.S. is 50%. The Indian foreign ministry did not immediately reply to an emailed request for comment. It has previously said the U.S. decision to single out India for Russian purchases was "extremely unfortunate". Top stories Swipe. Select. Stay informed. Singapore 18 persons nabbed and 82 vapes seized in HSA ops in Raffles Place and Haji Lane Singapore Woman trapped between train doors: Judge rules SBS Transit '100% responsible' Life 'Loss that's irreplaceable': Local film-makers mourn closure of indie cinema The Projector Singapore COE premiums up in all categories except motorcycles; Cat A price climbs 2.5% to $104,524 Singapore Nearly 2 years' jail, caning for man caught with at least 100 sexually explicit videos of children Singapore MyRepublic's policy of not imposing download speed limits to stay after takeover: Starhub Singapore Staff member found with active TB after screening at 2 pre-schools; no children diagnosed so far: CDA Singapore Grab users in Singapore shocked by fares of over $1,000 due to display glitch Russia's Deputy Trade Commissioner Evgeny Griva on Wednesday said buying oil from Russia is "very profitable" for India, which will not want to change its supplier. On average Russia gives a 5%-7% discount to Indian buyers, he said, adding that Russia has a "very, very special mechanism" to continue oil supplies to India. In addition, he said Russia had started accepting Indian rupee payments for its goods after the resolution of issues that had trapped billions of dollars worth of funds in Indian banks. 'GREATER EURASIAN PARTNERSHIP' As tensions between Washington and New Delhi rise, high-profile visits from New Delhi and Beijing in recent weeks have raised hopes on the part of the Asian neighbours that ties damaged by a 2020 border clash can be repaired. Indian Prime Minister Narendra Modi plans to visit China for the first time in over seven years later this month. The planned visit was reported by Reuters last week, even as other high profile exchanges, including Chinese Foreign Minister Wang Yi's two-day visit to New Delhi, concluded. At the same time, Russia is trying to revive long-standing plans for a trilateral meeting with India and China to help them forge a "greater Eurasian partnership". "As far as the trilateral is concerned, we are quite hopeful that this format will be resumed sooner rather than later because its importance is not questioned," Babushkin said. "This is closely linked to the Russian initiative of the establishment of the greater Eurasian partnership," Babushkin said. Russian President Vladimir Putin will meet Modi in New Delhi by the end of year, he said. Putin, Modi and Chinese President Xi Jinping are also expected to all attend the Shanghai Cooperation Organisation starting August 31. REUTERS
Business Times
32 minutes ago
- Business Times
Russia expects India to keep buying its oil and seeks China-India-Russia talks
[NEW DELHI] Russia expects to continue supplying oil to India despite warnings from the US, Russian embassy officials in New Delhi said on Wednesday (Aug 20), adding that Moscow hopes trilateral talks will soon take place with India and China. US President Donald Trump has announced an additional tariff of 25 per cent on Indian goods exported to the US from Aug 27, as a punishment for buying Russian oil, which constitutes 35 per cent of India's total imports compared with a negligible 0.2 per cent before the Ukraine war. 'I want to highlight that despite the political situation, we can predict that the same level of oil import (by India),' Roman Babushkin, the charge d'affaires at the Russian embassy in India, told a press briefing. He predicted India and Russia would find ways to overcome Trump's latest tariffs in their 'national interests'. Trade talks between India and the US broke down over the opening up of India's vast farm and dairy sectors, as well as its purchases of Russian oil. The total tariff announced on Indian goods entering the US is 50 per cent. The Indian foreign ministry did not immediately reply to an emailed request for comment. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up It has previously said the US decision to single out India for Russian purchases was 'extremely unfortunate'. Russia's Deputy Trade Commissioner Evgeny Griva on Wednesday said buying oil from Russia is 'very profitable' for India, which will not want to change its supplier. On average Russia gives a 5-to-7 per cent discount to Indian buyers, he said, adding that Russia has a 'very, very special mechanism' to continue oil supplies to India. In addition, he said Russia had started accepting Indian rupee payments for its goods after the resolution of issues that had trapped billions of US dollars worth of funds in Indian banks. 'Greater Eurasian partnership' As tensions between Washington and New Delhi rise, high-profile visits from New Delhi and Beijing in recent weeks have raised hopes on the part of the Asian neighbours that ties damaged by a 2020 border clash can be repaired. Indian Prime Minister Narendra Modi plans to visit China for the first time in over seven years later this month. The planned visit was reported by Reuters last week, even as other high profile exchanges, including Chinese Foreign Minister Wang Yi's two-day visit to New Delhi, concluded. At the same time, Russia is trying to revive long-standing plans for a trilateral meeting with India and China to help them forge a 'greater Eurasian partnership'. 'As far as the trilateral is concerned, we are quite hopeful that this format will be resumed sooner rather than later because its importance is not questioned,' Babushkin said. 'This is closely linked to the Russian initiative of the establishment of the greater Eurasian partnership,' Babushkin said. Russian President Vladimir Putin will meet Modi in New Delhi by the end of year, he said. Putin, Modi and Chinese President Xi Jinping are also expected to all attend the Shanghai Cooperation Organisation starting Aug 31. REUTERS
Straits Times
2 hours ago
- Straits Times
UK inflation at 18-month high as food, transport costs soar
Consumer prices rose 3.8 per cent in July from a year earlier, up from 3.6 per cent in June and the fastest pace since January 2024. UK inflation climbed to an 18-month high on the back of surging food, transport and hospitality prices, putting the Bank of England under pressure to reconsider the pace of interest-rate cuts. Consumer prices rose 3.8 per cent in July from a year earlier, up from 3.6 per cent in June and the fastest pace since January 2024, the Office for National Statistics said Aug 20. The pickup was forecast by the BOE but exceeded the 3.7 per cent economists were predicting. Services inflation, a closely watched gauge of underlying price pressures, climbed to 5 per cent, above the BOE's 4.9 per cent forecast. The pound erased a drop after the report to trade little changed at US$1.3502. The July reading does little to settle the debate within the BOE over the path of policy after the tightest of decisions this month when rates were cut a quarter point to 4 per cent and Governor Andrew Bailey warned of 'genuine uncertainty' about the next move. The central bank expects inflation to peak at 4 per cent in September, double its 2 per cent target, on the back of higher food costs but to drop back after that. July's increase was also driven by what may prove to be temporary factors, including the biggest jump in air fares in 24 years due to the timing of the summer holidays, and moves in global food commodity markets. Policymakers will have to balance the risk of sticky inflation as the British public, scarred by three years of sharply increasing prices, demand compensating wage rises against fears the economy is stuttering and the BOE's own forecast that inflation will ease. The pickup in services and food prices will increase 'fears of inflation persistence at the Bank of England,' according to S&P Global Market Intelligence economist Raj Badiani. 'This will harden the assessment of several members of the MPC. They are likely to voice concerns that interest rates are falling too rapidly.' Top stories Swipe. Select. Stay informed. Singapore 18 persons nabbed and 82 vapes seized in HSA ops in Raffles Place and Haji Lane Singapore Woman trapped between train doors: Judge rules SBS Transit '100% responsible' Singapore COE premiums up in all categories except motorcycles; Cat A price climbs 2.5% to $104,524 Singapore Grab users in Singapore shocked by fares of over $1,000 due to display glitch Singapore MyRepublic's policy of not imposing download speed limits to stay after takeover: Starhub Singapore Emergency broadcast system to alert S'pore public to disasters via their mobile phones: Edwin Tong Life S'pore bands mark milestones with gigs: Silver Strings at 60, Mel & Joe at 55 and Lovehunters at 40 Singapore Singapore indie cinema The Projector owes over $1.2m to creditors Money markets kept wagers on BOE interest-rate cuts broadly steady, seeing around a 40 per cent chance of another reduction by year-end. A full quarter-point cut had been expected earlier this month. Gilts pared earlier gains, leaving the two-year yield lower by one basis points at 3.97 per cent, while the 10-year yield was flat at 4.74 per cent. Traders have curbed their bets on future rate cuts since the narrower-than-forecast decision on Aug. 7 saw some policymakers warn of the risk of second-round effects on wages and prices as consumers try to recover lost spending power. Subsequent figures showing the economy and labour market holding up better than feared have added to the case for caution. Policymakers will have two more months of data to consider before deciding whether to continue their once-a-quarter rate-cutting path in November. The figures add to evidence that firms are responding to Chancellor of the Exchequer Rachel Reeves' bumper tax and minimum-wage increases in April by passing on the billions of pounds in extra costs to consumers. Food and non-alcoholic drink prices, which shape inflation expectations more than other consumer items, rose 4.9 per cent on the year, the fastest pace since February 2024. The increase was driven by beef, chocolate, orange juice and coffee, suggesting global factors are also at play. Higher inflation undermines Prime Minister Keir Starmer's promise to improve living standards for 'working people' during Labour's first term. Instead a recovery in real incomes is fizzling out as resurgent inflation collides with a cooling labour market, with Ms Reeves' tax-raising budget in October blamed by critics for causing both. Commuters will be hit hard as rail fares are now due to rise 4.8 per cent next year, under the arrangement that they increase in line with the July reading for the retail prices index of inflation. In a statement, Ms Reeves said 'we're a long way from the double-digit inflation we saw under the previous government, but there's more to do to ease the cost of living.' The ONS said the monthly increase in air fares was the biggest since comparable records began in 2001 and was likely to have been due to the timing of the school holidays. They rose 30.2 per cent between June and July, compared with 13.3 per cent in 2024. The higher cost of fuel also lifted inflation and hotels and restaurant prices were 3.2 per cent higher in the year to July, up from 2.6 per cent in the 12 months to June. The ONS said there was no evidence that the Oasis reunion tour had affected the numbers. 'Excluding airfares, package holidays and education – a measure the BOE has in the past called 'core' services inflation – as well as accommodation services, which tend to be volatile, annual services inflation eased to 4.9 per cent from 5.1 per cent in June, based on our estimates,' economists Dan Hanson and Ana Andrade said. BLOOMBERG
