Tariffs Devastate Economy: How Are Chinese People Spending This May Day holiday?

As the "May Day" holiday approaches, China's sluggish economy, unstable job market, and low consumption have led many to opt for affordable short-distance travel. Popular search and booking destinations are concentrated in small cities and rural areas. For outbound tourism, as of April 17, international flight bookings for the May Day period have increased by 25% compared to last year, but they are mainly for relatively inexpensive short-haul destinations like Japan and South Korea.

With weak domestic demand, the Chinese government is attempting to stimulate foreign consumption through policy measures. Starting April 28, the tax refund threshold for foreign visitors in a single store has been lowered from 500 yuan to 200 yuan, and the maximum tax refund amount has been raised from 10,000 yuan to 20,000 yuan. However, experts widely believe these measures are merely a drop in the bucket.