According to Fitch Ratings, domestic travel will improve in the second half of the year.
Domestic tourism in China is on track to rebound after reaching an all-time low during strict Covid-related lockdowns, according to CNBC, citing Fitch rating data.
The analysis revealed an increase in holiday bookings since the country's largest lockdown ended in late May in Shanghai. In July, traveler numbers increased by more than 62% month on month. Bookings from online travel agencies increased 112% in July.
According to Fitch, the increased bookings indicate that tourism spending will begin to recover in the second half of the year.
"Despite ongoing scattered outbreaks, China's relaxed Covid-19 pandemic-related travel restrictions and more targeted pandemic control measures have fueled a rise in tourism demand," the ratings agency's China-based analysts wrote. "A slow recovery in the tourism sector has weighed on the economy given its significant contribution, accounting for around 11% of GDP and 10% of national employment in 2019," they said.
Tourism revenue and numbers are said to have dropped by nearly half in the first half of 2022 compared to the same period in 2019, before the pandemic.