China tourism spending declined by 60% since the coronavirus pandemic, according to the report of the Ministry of Culture and Tourism.
Most Chinese people reduced their travel spending during the first major holiday in China since the virus began to spread.
China posted 115 million tourist trips domestically during the Labor Day holiday from May 1 to May 5 this year. The country collected tourism revenue of 47.56 billion yuan ($6.79 billion).
The figures represent a 59.58% decline from the 117.67 billion yuan the country gained for last year’s Labor Day holiday.
Based on the figures published by the ministry, the country recorded 195 million visits last year, which was one day shorter and took place between May 1 and May 4.
Overall figures fell short of 2019. According to Ctrip, car rental reservations gained 10% from last year. The online travel booking site reported that Shanghai, Sichuan province’s capital Chengdu and Sanya city turned up as the three most popular destinations.
COVID-19 outbreak sprang late last year in Wuhan, China before it spread around the country and to other countries. Johns Hopkins University’s latest data shows that the virus already killed more than 4,600 people in China. There are more than 252,700 beyond the country.
More than half of China extended the Lunar New Year holiday shutdown for a week. Then, businesses started to reopen gradually. Beijing imposed the most stringent measures, such as requiring domestic travelers to self-quarantine for 14 days upon arrival.
A day or so before the Labor Day holiday started, the city lifted the self-quarantine policy for most travelers.
The Forbidden City’s Palace Museum started accepting visitors on May 1 after closing in late January. According to state media the museum accommodated about 5,000 visitors each day throughout the holiday.
China's economy
China's economy saw its first quarter GDP experience contraction. Data from the National Bureau of Statistics of China showed that the first quarter GDP contracted by 6.8% in 2020 from a year ago.
Analysts consulted by Reuters gave forecasts for China, saying its economy, particularly its GDP, would drop by 6.5% in the January to March quarter, compared to a year ago.
While the headline GDP figure was not a surprise, the rest of the data did not look good for the months ahead, said Bo Zhuang of TS Lombard.
“Before March, everybody was expecting China to have a V-shaped recovery because it was actually (about) China supply disruption,” Zhuang told CNBC. "But now we are seeing this demand shock."
Criticisms against China
National Economic Council Director Larry Kudlow said that China should be accountable for the coronavirus pandemic.
“On the China business, it’s up in the air. They are going to be held accountable for it. There’s no question about that. How, when, where and why — I’m going to leave that up to the president,” Kudlow said in an interview with CNBC.
Meanwhile, a source told CNN that according to a report from the US Department of Homeland Security (DHS), China intentionally concealed coronavirus data from the international community.
“China likely cut its exports of medical supplies prior to its January WHO (World Health Organization) notification that COVID-19 is a contagion,” the report states.
Secretary of State Mike Pompeo supported claims that China made efforts to conceal the gravity of the coronavirus outbreak. This also involves hiding the stockpiling of medical supplies.
