China's Lunar New Year Travel and Spending Surpass Pre-COVID Levels

China's tourism revenues during the Lunar New Year holidays surged by 47.3% year-on-year, surpassing pre-pandemic levels and offering temporary relief to policymakers amid deflationary risks. Domestic tourism spending reached 632.7 billion yuan, with the number of domestic trips growing by 34.3% from last year. However, average spending per trip decreased by 9.5% from 2019, indicating consumption downgrading. International travel also saw a significant increase, with the total entry-exit trips returning to 90% of 2019 levels. The economy, facing challenges such as a property downturn and sluggish demand, prompted policymakers to maintain a delicate balance between supporting growth and addressing deflationary pressures.