In Beijing, China, on February 21, 2026, the public gathered on Qianmen Street to enjoy performances welcoming the 'God of Wealth' as part of the Lunar New Year festivities. Images by Nurphoto and Getty.
BEIJING — China’s consumer market is showing signs of recovery, sufficient to ward off the necessity for extensive stimulus measures investor analysts have long anticipated. During the nine-day Lunar New Year, which concluded on Monday, spending across various sectors including hotel bookings and duty-free shopping demonstrated a steady increase. A record rail travel of over 18.7 million passengers in a single day further bolstered confidence in a recovering economy.
According to a report released Tuesday by CCB International Securities, the encouraging data suggests the effectiveness of Beijing’s recent support measures. The report also highlights a significant consumer trend: a faster increase in spending on experiences such as travel and entertainment as opposed to traditional goods.
Retail sales in China have faced challenges since the pandemic, unlike the U.S., which provided cash incentives to consumers; Beijing has opted for trade-in programs and vouchers. Despite increasing calls to improve consumer incomes, detailed plans remain undeveloped, and are not expected to change imminently.
Policymakers are poised to build on the positive holiday momentum with targeted, incremental easing initiatives anticipated during the March Two Sessions to stabilize expectations and continue the recovery, according to CCB analysts. Chinese Premier Li Qiang is scheduled to outline the year's economic targets and policies on March 5.
Despite resurgence in travel activities, budget-conscious attitudes among consumers persist. Official holiday reports released revealed a 5.7% average daily increase in tourism trips compared to the previous year, aligning with figures from 2025. Although spending rose by 5.5%, it was slower compared to the previous year’s 7% growth. Morgan Stanley Equity Analyst Lillian Lou commented that while the improving sentiment owed to a longer holiday period, consumers were generally cautious with spending.
Indicating ongoing deflationary pressures, holiday data noted a 0.2% decrease in average spending per tourist trip compared to the previous year. To spur consumer expenditure, China extended the official holiday by an additional day compared to the preceding year, with many people also opting for personal leave during this time. “The extended holiday encouraged families to travel together,” mentioned Jihong He, chief strategy officer at H World Group, a prominent Chinese hotel chain. “This shift is driving demand for larger rooms and family-friendly configurations for shared experiences.”
H World operates over 12,000 hotels under more than 30 brands across mainland China. During the Lunar New Year, their top destinations, all of which boasted hotel occupancy rates of 90% or more, were located in southern or coastal cities, including the tropical city of Sanya in Hainan. With China’s expansion of a zero-tariff policy for the island in December, duty-free luxury product purchases have been encouraged on the mainland, with Hainan’s duty-free sales for the holiday period rising by 30.8% from the previous year to reach 2.72 billion yuan ($400 million).
Alibaba-owned travel booking platform Fliggy reported a doubling in bookings for hotel and theme park packages compared to last year. Other destinations, such as Altay in Xinjiang and Pu'er in Yunnan, also experienced a noteworthy increase in bookings, indicating a diversification in travel interests.
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