Weathering the Economic Downturn: Middle Class Turns to Budget Travel While Low-Income Individuals Struggle

China’s economy has experienced a rapid decline after three years of epidemic control measures. Numerous private enterprises have shut down, and street shops are closing their doors one after another. Even the lower middle class is cutting back on expenses, with many struggling to make ends meet and voicing their grievances.

Mr. Yang from Fuzhou, Fujian Province, told Dajiyuan that after the end of epidemic control measures, the economy has worsened. Many middle-class individuals have lost their jobs or faced pay cuts, coupled with the burden of mortgages and car loans. People who used to enjoy traveling annually now only travel for the sake of taking photos.

“Traveling experiences have become quite dull. Domestic travel is available, but some people are choosing to explore nearby destinations. It’s rare to hear about overseas travel,” said Mr. Tan from Fuzhou.

A Thai tourism operator, Mr. Liu, mentioned that Chinese tourists visiting Thailand nowadays mainly consist of low to mid-income individuals. In order to attract Chinese tourists to Thailand, some Chinese travel agencies have even offered luxury 7-day tours for as low as 555 RMB.

Despite this, the number of tourist groups visiting Thailand this summer has decreased by more than half compared to previous years. Consumption power has also significantly declined. Mr. Liu shared, “Today, even though I led a tour group, no one was interested in playing popular activities like parasailing. It’s as if everyone lost interest in having fun.”

He added that Chinese tourists nowadays have a minimalist approach to travel – sleeping on the bus, taking quick restroom breaks, snapping pictures at destinations, and considering the visit as a mere formality.

Moreover, many tourists are reluctant to make purchases during their trips. Mr. Liu noted that some Chinese tourists refuse to buy even essential items like flip-flops to protect their feet from the scorching cement ground.

The video shows that clothing stores were the first to shut down in large numbers. As clothing is not considered a necessity, consumers are cutting back on non-essential purchases. Eateries have managed to survive as people still need food to eat.

Mr. Liu mentioned that many Chinese tourists he encountered were freelance professionals. A small business owner from Wuhan explained how the pandemic has drastically impacted his income, with many businesses closing down and livelihoods becoming uncertain.

Mr. Tan from Fuzhou pointed out the stark economic situation in his county, where small eateries and supermarkets are closing down. The once bustling marketplace has seen a significant decline in business activity, indicating a severe economic downturn.

Mr. Tan, who previously worked in the construction industry, expressed how the real estate market slump has left him without employment opportunities for over half a year.

Amidst the challenging economic conditions, Mr. Zhu from Guangzhou shared the distressing story of a middle-aged woman he knew who faced severe financial difficulties, leaving her unable to afford medical treatment when she fell ill.

A villager named Cuihua from southwestern Henan province revealed the struggles of caring for her elderly and sick family members without adequate resources. The burden of caring for her father with terminal lung cancer and her mother in a vegetative state has taken a toll on her physical and emotional well-being.

Cuihua’s husband works in a frontline city and supports the family financially, but the strain of balancing work and caregiving responsibilities has visibly aged her at a young age.

These grim accounts and personal stories reveal a bleak reality for the lower-class population in China, with many feeling hopeless about their future prospects.