China's economic woes dampen 'Golden Week' holiday travel

China is expecting to see more travelers during Golden Week, but the country's persistent economic woes will likely continue to weigh on overall spending this holiday season.

Authorities at the Ministry of Transport project that 1.94 billion inter-city trips will be made during the National Day holiday this year, slightly higher compared to a year ago, according to officials at the Ministry of Transport.

Shaun Rein, founder and managing director of China Market Research Group said that although the number of domestic trips made during this holiday period could beat 2019, the average spend per traveler is expected to be lower.

Consumers across China have become more frugal as the country struggles with a prolonged real estate slump and rising unemployment. Consumers are likely to cut back on spending until they feel "their income levels are stable and will continue to grow," Rein said.

Average prices for hotels and flights on travel booking site Trip.com have hovered below levels seen a year ago. Prices for both domestic and outbound flights during the National Day period declined compared to last year, according to report by Trip.com released last month.

Alicia Garcia Herrero, chief economist at Natixis, also said that the country could see a slight uptick in overall tourism spending during the holiday break, but such a rise should be seen against the backdrop of what she called last year's "lower base."

During the Golden Week holiday last year, China saw domestic tourism revenue reach 753 billion yuan ($107.37 billion). That represented an increase of 1.5% from 2019, according to data from the Ministry of Culture and Tourism.

Not only have flights been cheaper, data also indicates that travelers may be opting for lower cost