HONG KONG - Chinese tourists tapped a lengthy national holiday to travel to Hong Kong, Macau and overseas in the largest numbers in years, suggesting that consumption in the world’s second-largest economy is mounting a rebound. 

More than 1.2 million Chinese travellers visited Hong Kong during the eight-day Chinese New Year celebration, the financial hub’s government said on Feb 18.

That surpassed the number that was recorded over an equivalent period in 2018, before the Covid-19 pandemic.

Nearby Macau reported a record 1.4 million tourists for the holiday – an upbeat sign for casinos in the world’s biggest gambling hub. 

The 2024 new year holiday – which was one day longer than in 2023 – marks China’s most important national celebration and is a key barometer for consumption early in the year.

China’s outbound travel has been recovering more slowly than domestic travel as the country’s ongoing property crisis dents confidence and deflationary pressures persist.

During 2023’s national holidays, budget-conscious consumers still took trips but sought out cheaper deals and spent less. 

This time around, overseas tourism appeared to be picking up.

Shanghai’s Pudong and Hongqiao international airports handled about 860,000 inbound and outbound passengers over the holiday period, more than five times above the 2023 figure, the official Xinhua news agency reported. 

About 29,000 people either coming from or headed to Singapore travelled through Pudong airport, some 12 times more than over a comparable timeframe in 2023.

The two nations reached a visa-free arrangement that kicked off earlier in February, allowing Chinese nationals and Singaporeans to stay in the other country for up to 30 days without a travel permit.

“The relaxing of visa (requirements) really takes away a lot of friction,” said Mr Lim Ching Kiat, executive vice-president for air hub and cargo development at Singapore’s Changi Airport Group. “Our recovery rate between Singapore and China market is actually quite healthy.”

Spending overseas has been positive, too, with Chinese tourists shelling out 70 per cent more on food and beverage compared with 2019, according to data last week from fintech giant Ant Group.

Among the top destinations for Chinese travellers were Hong Kong, Japan, Thailand, France and Australia. BLOOMBERG