China’s Tourism Numbers
According to China’s state TV (CCTV), travel during the June 22-24 Dragon Boat Festival holiday showed a mixed picture for the country’s tourism industry. While it was up compared to 2022, it was still down 22.8% from the pre-COVID levels of 2019. This data reflects the ongoing challenges faced by the Chinese economy as it tries to recover from the impact of the pandemic.
- The number of railway trips during the Dragon Boat Festival holiday saw a jump of 12.8% compared to the same period in 2019.
- Road travel, on the other hand, witnessed a significant decline of 33.3% from the pre-COVID levels of 2019.
- Trips by sea were down by 43.6%.
- However, trips on flights recorded a modest increase of 3% compared to 2019.
South Korean Carriers Cut Flights
At least two South Korean carriers, Korean Air Lines and Asiana Airlines, have decided to reduce their flights to and from China due to lower demand and strained relations between the two countries. This move highlights the challenges faced by airlines as they navigate the complexities of international travel in the current geopolitical landscape.
Market Concerns and Stimulus Measures
Global markets are closely monitoring data from China to gauge the progress of its economic recovery. As the initial bounce from the COVID crisis starts to fade, attention is shifting towards stimulus measures implemented by the Chinese government. While recent policy rate cuts by the central bank have been observed, market experts believe that more significant fiscal stimulus would be required to alleviate concerns and bolster market confidence.
Political Focus of China’s Leadership
Interestingly, China’s leadership seems to be putting more emphasis on political issues rather than the economy at present. Support for Putin and the growing tension surrounding Taiwan are among the key concerns occupying the country’s leadership.
Despite these developments, it’s important to stay updated on the ongoing situation in the Russian coup, which continues to evolve.