Tourism pivotal force driving demand recovery

After being pummeled by the COVID-19 pandemic a few years back, China's economy is showing signs of recovery. The biggest factor driving it is domestic demand. Projections suggest the uptrend will continue, pointing to a steadying of consumer confidence after the contagion-related slump.

While not all sectors are booming, a big driver of the recovery has been the robust performance of tourism, a large contributor to the CPI, the main barometer of inflation.

Chinese consumers are optimistic about the economic recovery, according to a report by McKinsey & Co, with projected tourism-related expenditures expected to remain robust. Surveys reveal that 87 percent of respondents plan to increase or maintain their tourism spending, particularly in the areas of culture, entertainment and shopping — categories of consumption that are highly flexible and full of potential for economic growth.