China’s Ministry of Culture and Tourism said that local travellers made an estimated 314 million domestic trips between May 1 and 5. The growth was 6.4% compared to 9.2% a year earlier. However, the travel momentum was 36% higher than in 2019, the year before the pandemic. FILE PHOTO: People walk along the Nanjing Road Pedestrian Street during the five-day Labour Day holiday in Shanghai, China May 4, 2025. REUTERS/Go Nakamura/File Photo

Spending by tourists increased 8% on year to 180.3 billion yuan (about $25 billion). That’s a little less $80 spent on each trip, on average, same as last year. The average spending in 2019 was 6% higher, according to reports. People enjoy the city lights at the Bund during the five-day Labour Day holiday in Shanghai, China May 4, 2025. REUTERS/Go Nakamura

The May Day holiday is an important sign of China’s economic health as well as a big source of income for the country’s transportation, tourism and retail sectors. During this time, millions of Chinese travelers hit the road to visit family, explore domestic and foreign destinations. PHOTO: A Labubu mascot performs for visitors to Pop Land, a theme park for Pop Mart, manufacturer of collectible toys and plush dolls during the May Day holiday in Beijing, Thursday, May 1, 2025. (AP Photo/Ng Han Guan)

According to the Ministry of Commerce data cited by Global Times, sales from major retail and catering businesses across China saw a year-over-year increase of 6.3 percent during the holiday. FILE PHOTO: People shop at a souvenir store during the five-day Labour Day holiday in Shanghai, China May 4, 2025. REUTERS/Go Nakamura/File Photo

Foreigners travelling to China surged 173% year-on-year during the May Day holiday. Visitors film as mascots for a family of collectible dolls including Labubu and Mokoko pefrom at Pop Land, a theme park for Pop Mart, manufacturer of collectible toys and plush dolls during the May Day holiday in Beijing, Thursday, May 1, 2025. (AP Photo/Ng Han Guan)

Retail sales growth in China was less than 4% for almost the whole of last year, except in October. It had inched up this year after a sustained effort by the Xi Jinping administration to boost domestic consumption, which is crucial for China to hit the 5% growth target. The next big holiday season in China will be the National Day Golden Week in October, commemorating Mao Zedong’s proclamation of victory for the Chinese Communist Party in the civil war that ended in 1949.