China's Railway Passenger Boom: 500 Million Trips and Counting!

China's Railway Passenger Trips Hit 500 Million Mark

According to data released by the country's railway operator, China's railway network has already carried over 500 million passenger trips during the summer holidays. This highlights the strong vitality of China's travel sector, which has emerged as a crucial driver of consumption.

According to data from China State Railway Group Co, the country's railway network carried 513 million passenger trips between July 1 and August 6, representing a 5.4 percent year-on-year growth. The operator reported that the daily average number of passenger trips during this period was 13.86 million.

"During this year's summer holiday period, there has been robust travel demand," an official with China State Railway Group Co said, pointing to large travel flows by students and tourists.

The summer holiday period is a peak travel season in China from July 1 to August 31. This year, the China State Railway Group Co. expects the total number of railway passenger trips to reach 860 million, compared to 830 million trips during last year's summer holiday period.

China's civil aviation industry is expected to experience high demand during this year's summer holidays. The Civil Aviation Administration of China predicts that air passenger trips will reach 133 million during this period.

The latest figures indicate that this year's summer travel is expected to exceed last year's, which could significantly boost consumption, a significant driver of economic growth. In the summer of 2023, domestic tourism trips reached 1.839 billion, generating revenue of 1.21 trillion yuan ($168.56 billion), according to the China Tourism Academy.

Since the beginning of 2024, China has experienced a significant increase in tourism. In the first half of the year, the total number of domestic tourism trips had already reached 2.725 billion, showing a 14.3 percent increase year-on-year. Additionally, total tourism spending reached 2.73 trillion yuan, marking a 19 percent increase year-on-year, according to the Ministry of Culture and Tourism.

Boosting tourism is a vital part of China's overall effort to increase consumption, which has become a top priority in the country's economic agenda. Officials have consistently emphasized their commitment to making boosting consumption a more prominent priority to ensure stable economic growth.

Analysts predict additional policy measures to stimulate consumption in the second half of 2024, following recent high-level meetings emphasizing the need for concrete efforts to meet annual economic growth targets.

The Political Bureau of the Communist Party of China Central Committee met on July 30 to discuss economic priorities for the second half 2024. The focus will be on increasing domestic consumption to stimulate demand, emphasising policies that directly benefit the people and promote spending. The meeting highlighted the importance of supporting consumption in cultural tourism, elderly care, childcare, and domestic services.