China hotels, travel bookings perk up in boon for COVID-hit services sector

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After three years of dealing with some of the world's toughest COVID-19 curbs, there are early signs that Chinese consumers are gearing up to go out and spend again, particularly in major cities and tourist hot spots.

Over the three-day New Year's Day holiday, businesses and consumers caught their first glimpse of a return to post-pandemic life -- holiday-makers flocked to beaches, flight numbers ticked up, and hotels turned some guests away because they were fully booked.on Thursday showed that the services sector continued to struggle in December, businesses are now hoping that the busy long weekend was a sign that a rebound is on the cards, even if a full recovery will take some time.

"I think the most difficult time for China's tourism industry is behind us, and what didn't kill us will only make us stronger," said Haiqing Lu, chief corporate affairs and strategic relations officer at InterContinental Hotels Group Greater China. However, any such recovery will initially be focused on the country's first-tier cities, he added, noting that if travellers take the virus home to rural areas during the upcoming holiday the resulting rise in infections will hurt consumption in third and fourth-tier cities.

For four of the past six years, the first day of the Lunar New Year has been the busiest single day at the box office, including 2021 and 2022, according to China's movie ticketing platform Maoyan Entertainment.Many businesses have been forced to adapt how they reach customers over the course of the pandemic.

 

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