During the “Golden Week” holiday in China Mainland, which is a peak period for travel and consumer spending, the average expenditure per person on domestic travel experienced a significant decline, marking the lowest in four years. Additionally, the box office revenue of the film industry plummeted by 36.6%, hitting a new low of 12 years.
The “Golden Week” holiday is traditionally promoted as a time for abundant tourism and consumer spending, serving as a gauge of consumer confidence. However, factors such as sluggish performance in the real estate market and slow wage growth have contributed to a lack of confidence among consumers.
According to data released by the Chinese Ministry of Culture and Tourism, the average expenditure per person for domestic travel during this year’s “Golden Week” holiday was 893.92 yuan (RMB), down by 1.9% compared to the same period last year when it was 911.04 yuan, marking the lowest record since 2023. During the 2022 pandemic period, the average expenditure per person for domestic travel was 680.6 yuan, showing a subsequent rise in 2023 and 2024 to 912.65 yuan and 916.1 yuan, respectively.
Jefferies cited industry data in a report indicating that during this year’s “Golden Week” holiday, the average revenue per room in domestic Chinese hotels decreased by 0.5% annually, with room prices dropping by approximately 2% per room.
Analysts pointed out that the primary issue lies in the lack of consumer confidence in China. Ailsa Liao, a senior analyst at Forthright Securities, highlighted that the problem is not that people are unwilling to spend but rather they feel uncertain about their income and job prospects.
The film market also exhibited a sluggish state during the holiday period. The box office revenue from films during the “Golden Week” holiday, which is typically an important period for the Chinese film industry along with the Chinese New Year holiday, only reached 1.156 billion yuan this year, representing a sharp drop of 36.6% compared to the same period last year and marking the lowest record since 2014, performing even worse than during the pandemic.
Public data indicates that during the National Day holiday in 2019, the box office revenue in Mainland China reached 4.466 billion yuan, dropped to 2.734 billion yuan in 2023, and further decreased to 2.104 billion yuan in 2024. In 2025, with an 8-day holiday, the box office revenue was 1.835 billion yuan, which dropped further to 1.156 billion yuan this year with a 7-day holiday.
The downturn in the film market was also reflected during the Mid-Autumn Festival period. According to ticketing platform data from Maoyan, the total box office revenue for the 2026 Mid-Autumn Festival (from the 25th to the 27th) was 269 million yuan as of 9:00 PM on September 27. In 2025, with just one day for the Mid-Autumn Festival, the box office revenue was around 200 million yuan. The data for 2026 slightly exceeded that of the previous year, but the last time that the Mid-Autumn Festival box office revenue was less than 300 million yuan was in 2013.
Macro data revealed that from January to August, the total retail sales of consumer goods grew by 1.1%, with a monthly increase of only 0.4% in August, indicating that despite some industries experiencing growth, China’s overall investment, consumption, and real estate market still face significant pressures.
Xu Hongcai, Chairman of the HLC Global Think Tank, recently analyzed the fundamental issue of weak demand in Mainland China. He mentioned that the root cause of insufficient investment, overcapacity, and deflationary pressures lies in inadequate consumer demand. Understanding the relationship between investment and consumption is crucial in stabilizing the macroeconomy, facilitating the circulation of the national economy, and addressing overcapacity and deflationary pressures effectively. Recognizing and addressing this key contradiction is essential for managing the country’s macroeconomy effectively. Amid widespread overcapacity, blindly expanding investment will only exacerbate the existing issues.