COVID-19 and Olympic restrictions curb Lunar New Year spending
Tourist receipts are down by 3.9 per cent in one year, and now represent only 56.3 per cent of those reported in 2019, before the pandemic. The authorities issued a warning against domestic travel, while Beijing is in a security bubble for the Winter Olympics. China’s zero-tolerance policy against the coronavirus is a threat to growth.
Beijing (AsiaNews) – Restrictions associated with COVID-19 and the Winter Olympics in Beijing have cut spending for the Lunar New Year holidays, which began on 1 February under the sign of the Water Tiger.
According to the Chinese Ministry of Culture and Tourism, the long holiday that began on 31 January saw tourist receipts drop by 3.9 per cent to 289.2 billion yuan (US$ 45.5 billion). Domestic trips fell 2 per cent over a year ago to 251 million.
Compared to pre-pandemic figures, tourist receipts and domestic trips this year dropped considerably over 2019, down by 56.3 per cent and 73.9 per cent respectively
Entertainment also suffered major losses. Box office receipts fell by almost 23 per cent in one year while cinema admissions dropped by 28.4 per cent.
New Year's Eve celebrations are usually the only ones workers can enjoy and last at least 15 days, until the Lantern Festival.
Like last year, central and provincial authorities warned people against travelling, especially the hundreds of millions of migrants, who work in cities but go back to their villages to celebrate New Year with their families.
Seven high-risk areas of China are currently in lockdown because of SARS-CoV-2, including the capital.
To ensure the Winter Games go off without a hitch, Beijing has been placed in a security bubble, with a total travel ban.
The same restrictions are in effect in two other Olympic venues: Yanqing, a suburb of the capital, and Zhangjiakou (Hebei).
Big enterprises are paying bonuses to couriers and deliver staff to boost home consumption during the holidays.
Nikkei Asia estimates that on average, delivery workers will earn in nine days around 4,000 yuan in basic salary and bonuses, the equivalent of the usual wages for half a month.
Lockdowns have had a significant impact on economic activities. In the Zhangjiakou, where Olympic ski events are being held, all major ski and tourist resorts are closed until 30 March to the detriment of local operators.
With the fall in holiday receipts, several observers predict a modest growth, at least by Chinese standards, in China’s GDP in the first quarter, just under 4 per cent.
Consequently, the government's COVID-19 containment strategies will weigh heavily for the next few months.
Analysts note that its zero-tolerance policy will most likely continue until the 20th Congress of the Communist Party of China, scheduled for this fall.
According to a recent study by the Eurasia Group, the authorities fear an explosion of infections, given the population’s low level of immunisation and the limited effectiveness of Chinese vaccines against the Omicron variant.
However, maintaining the restrictions will limit the growth of domestic consumption and continue to damage the global supply chain.
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