Domestic travel will recover in the second half of the year, Fitch Ratings says
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Domestic tourism in China is on track to make a comeback after sinking to an all-time low during strict Covid-related lockdowns, CNBC reported Monday, citing Fitch Ratings data.
The analysis showed an increase in holiday bookings since the country’s biggest lockdown in Shanghai ended in late May. Traveler numbers surged by over 62% month-on-month in July. Data from online travel agencies showed bookings surging 112% over July.
The increased bookings indicate that tourism spending would be recovering in the second half of the year, according to Fitch.
“China’s relaxed Covid-19 pandemic-related travel restrictions and more targeted pandemic control measures have fueled a rise in tourism demand, despite ongoing scattered outbreaks,” the ratings agency’s China-based analysts wrote. “A slow recovery in the tourism sector has put a drag on the economy given its large contribution, accounting for around 11% of GDP and 10% of national employment in 2019,” they noted.
Tourism revenue and numbers reportedly dropped in the first half of 2022 by nearly half compared to the same period in 2019 before the pandemic struck.
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