Sharp rise in domestic tourism spurs spending

China’s domestic tourism sector demonstrated remarkable resilience in 2025, achieving substantial growth with residents making 6.522 billion trips—a significant 16.2% increase from the previous year. According to the Ministry of Culture and Tourism’s latest sampling survey, this surge generated approximately 6.3 trillion yuan ($906 billion) in tourism expenditure, marking a 9.5% year-on-year increase.

The most striking development emerged in rural tourism dynamics. While urban residents recorded 4.996 billion trips (14.3% growth), rural residents demonstrated exceptional momentum with 1.526 billion trips—a dramatic 22.6% increase. Spending patterns mirrored this trend: urban tourism expenditure reached 5.3 trillion yuan (7.5% growth), while rural tourism spending skyrocketed by 21.4% to 1 trillion yuan.

Industry experts attribute this growth to multiple factors. Professor Lyu Ning, Dean of the School of Tourism Sciences at Beijing International Studies University, identified three primary drivers: a flourishing holiday economy, deeper integration of tourism with cultural and sports activities creating novel experiences, and effective pro-consumption policies. She emphasized tourism’s evolution from mere leisure activity to a essential source of emotional value and happiness in modern Chinese society.

The disproportionate growth in rural tourism reflects the sector’s crucial role in rural revitalization. Years of tourism-focused poverty alleviation have substantially improved rural infrastructure, while urban demand for authentic cultural experiences and micro-vacations has created new economic opportunities. This transformation has repositioned rural areas from tourist sources to premium consumption destinations, establishing a mutually beneficial urban-rural dynamic.

Both Professor Lyu and Professor Yin Ping from Beijing Jiaotong University dismissed concerns about ‘consumption downgrading’ despite the slower spending growth relative to trip volume. They characterized this phenomenon as market maturation rather than weakening consumption, noting travelers’ increasing preference for value-conscious experiences, short-distance travel, and county-level destinations. Improved transportation infrastructure, particularly high-speed rail, has reduced travel times and altered traditional spending patterns while enhancing overall accessibility.

The professors emphasized that tourism’s economic impact extends beyond direct revenue, stimulating broader industrial chains, expanding domestic demand, creating employment opportunities, and facilitating information and capital flow throughout the economy.