Bankinter: First data on Golden Week spending: international daily travel is estimated to have increased +19% year-on-year, surpassing pre-covid levels. On the first day of this holiday week, foreign travel increased 40%, according to Trip.com (up 30% to Europe) and rail travel reached record highs. According to Alipay, tourists who have travelled abroad have spent 120% more than last year. Other indicators, however, such as travel to Hong Kong showed no significant change compared to a normal weekend.
Analysis team’s view: These initial data show a higher propensity to spend than expected, at least in certain segments of the population with higher income and wealth levels. Recent monetary stimulus announcements and probably other fiscal stimulus that could be enacted should continue to improve consumer confidence. In Europe, this has a positive impact on the luxury sector, where China accounts for ~25% of the sector’s sales.
