As the “May Day” holiday just came to an end, many businesses in various places have reflected that this year’s “May Day” was the worst year for business, with “a lot of people, but no one buying.”
The Chinese Communist Party’s Ministry of Transportation released data claiming that during the “May Day” holiday period (May 1st to 5th), it is anticipated that the total interregional population flow throughout the whole society will accumulate to 1.467 billion person-times, with a daily average of 293 million person-times, an 8.0% increase compared to the previous year. In addition, the Chinese Communist Party’s Ministry of Commerce announced that the sales of key retail and catering enterprises in China during the May Day holiday increased by 6.3% compared to the previous year.
However, these official figures are vastly different from the actual experiences of many merchants. Many business owners have taken to social media platforms to lament: “This year’s May Day holiday is the worst year for business.”
A blogger in Shanghai, known as “CEO Jiangyu,” released a video on May 5th stating that during the May Day holiday, there were indeed many people in Shanghai, with many tourists on the streets, but no one was making purchases, just window shopping, unwilling to spend an extra penny. With no one buying, businesses started to struggle.
A merchant in Shanghai lamented, “There are so many people, yet no one is buying.”
This blogger mentioned that it’s not just Shanghai, as consumption data in first-tier cities like Guangzhou and Shenzhen are also declining.
Internet users commented in the discussion section: “Nowadays, when people travel, they generally only buy food.” “Having many people doesn’t have an impact, there’s no boost in consumer spending.”
A hotel owner in Inner Mongolia, known as “Hotel Yangliulang,” released a video on May 4th, stating that the business during this year’s May Day holiday was extremely bleak. Despite the Chinese official claim of 1.4 billion trips during the holiday period, the Inner Mongolia official also declared a 25% increase in tourists this year compared to last year, he seriously questioned the authenticity of these official figures.
“Hotel Yangliulang” expressed that the official figures are alarmingly high, yet his hotel business did not see any growth, even worse than last year. “The first three days of ‘May Day’ were as bleak as death, and the last three days were equally bleak… averaging it out, it’s much worse than usual.”
Similarly, “Qiu Ge,” also in the hotel industry, stated in a video released on the 5th that the hotel industry did not experience the situation of “1.4 billion trips” as claimed by the authorities, indicating that a harsh winter has arrived for the hotel industry.
“Qiu Ge” jokingly commented, “Many of them (tourists) probably slept on the streets, in tents, or in small groves, but didn’t come to the hotels.”
He also mentioned, “During this year’s May Day holiday, there has been a significant change in the consumption habits of hotel customers. People are staying within their own cities to play, long-distance travel has significantly decreased. With the substantial decrease in business clients and expected reduction in outbound tourists, the survival of the hotel industry will be in question after these two reductions.”
Many netizens who operate hotels left comments in the discussion area: “It’s hardly full any day during the May Day holiday, it seems like I am the worst, only an 80% occupancy rate, today 20%.”
“On the 1st to the 3rd, the 2nd was fully booked, the occupancy rate on the 3rd was 50%, on the 4th it returned to the original rate of 40%, I dare not check the data today, the 5th.”
“It feels like after ‘May Day,’ the harsh winter for hotels has truly arrived.”
The owner of a bakery in Shanxi, named “Yongji Pujiusi Stone Cake,” stated in a video released on the holiday that this year’s May Day was the worst year in history for business, with tourists bringing their own dry rations, tightly holding onto their pockets, and not spending.
“After the end of ‘May Day,’ to sum it up for everyone, this year is the worst. It is estimated to get worse and worse in the future,” said the bakery owner. “In the first year after we just got rid of masks (pandemic), people seemed to be crazy about spending, afraid they won’t be able to buy something for themselves. Then after another year, it’s not good anymore; then after another year, this year will be completely, completely bad.”
“Ah, they are roaming about but there’s minimal consumption overall. Just take a simple example, like going to eat a big pot of chicken, normally six or seven people should order a large portion, but they will just order a small one. Ah, it’s getting worse every year.”
In response, a netizen remarked, “It’s true, obviously, with four or five people, they should order food for two people and buy a few more cakes to share, they didn’t even ask for drinks.”
“All the same, now people don’t have money, a lot of travel expenses have also decreased, some non-essential consumption will be eliminated.”
The owner of a tobacco and alcohol hotel in a tourist city, known as “A Qing Vlog,” stated in a video on the 3rd, “During ‘May Day,’ there were more people, but the turnover was average, consumption has downgraded, and opening a store can only be done as a side job.”
The owner of a coffee shop in Hangzhou, named “Su Hangqing,” mentioned in a video on the 2nd that the May Day long holiday had scorching weather but the market’s consumption power was freezing. On the 2nd, the West Lake scenic area was clear, with hardly any people. Even the taxi drivers mentioned that people were not going out to spend, so no passengers were taking taxis.
“Last year on May 1st, the daily turnover in the store was 12,000 yuan, this year it’s only 3,000 yuan, it is a significant cut and then another cut, I have no idea where people have gone,” the coffee shop owner remarked. “It’s very evident that the consumption quality of out-of-town tourists this year is far below the previous years. People coming out to play now are not willing to spend money, I don’t know why, maybe they are afraid to spend money, or are we already in an era of low desires?”
A netizen responded, “A 70% decrease in turnover is normal.” “People can’t make money, so they’re not spending.”
“Consumption power has indeed decreased in Hangzhou this year during ‘May Day,’ many fewer people. Hotels have plummeted drastically these past two days.”
The owner of a restaurant in Hefei, named “Qiu Yongtai Handmade Soup Dumplings,” stated in a video on the 2nd that during the May Day holiday, when it was mealtime there wasn’t a single person in the restaurant. And it wasn’t just his shop, the neighboring restaurants and the Luckin Coffee shop across the street also had no customers.
He mentioned that Hefei is not a tourist city. During long holidays, people travel to nearby or out-of-town areas, resulting in particularly poor business in the shops, even worse than on regular weekends. He openly stated that he wouldn’t open the store during the next long holiday, he’d directly take a break at home.
Chinese private consumption continues to decline, with one blogger analyzing that continued falling property prices could lead to a significant shrinkage in people’s assets, further causing a cliff-like drop in consumption levels, and ordinary people are now afraid to spend money.