China’s Service Spending Rose 19.5% Over National Day Holiday, Led by Travel, Culture and Sports

Service spending in China rose sharply over the National Day holiday. VAT invoice data released by the State Taxation Administration on October 8 show average daily sales in service-related industries up 19.5% year on year, led by travel and entertainment, culture and sports.

By FOCUS BUSINESS editorial staff

The figures are based on sales recorded on VAT invoices issued by businesses, converted to a daily average for the holiday and compared with the same period last year. Shanghai Securities News and The Paper reported industry-level numbers based on the State Taxation Administration release.

Travel, culture and sports lead

Within services, travel and entertainment grew 23.6%. Travel agencies rose 26.2%, amusement parks 41.2% and homestays 12.8%, while budget chain hotels grew a more modest 6.3%. Culture and arts services rose 20.9%, with performance services up 21% and public cultural and sports activities up 28.3%. Sports services grew 29.4%.

Catering rose 9%: fast food was up 30.6% and snacks 15.5%, while beverage and cold-drink services more than doubled.

Phones and appliances jump

In goods, communication devices (mobile phones, smart bands and similar) rose 119.8%, the biggest gain. Home appliances and audio-video equipment grew 40.1%, including 40.6% for household appliances such as refrigerators and washing machines and 36.6% for home viewing equipment such as TVs. Kitchen and bathroom goods rose 52.3%.

“Spending on oneself” also grows

Pet services rose 80.8%, hair and beauty services 37.1% and fitness activities 16.7%. Economist Fu Yifu said consumption is shifting from a goods-led pattern toward one driven by services and goods together.

Business Checkpoints

These are year-on-year changes in sales recorded on invoices. Korean-owned businesses in retail, dining, travel and culture can compare the sector figures with their own holiday results. Sectors with large percentage gains may be coming off a small base, so the ratios alone say little about market size.

This release does not show whether holiday spending will carry over after the break. It is worth watching follow-up data such as retail sales of consumer goods from the National Bureau of Statistics.

※ This article is based on data released by the State Taxation Administration of China and Chinese media reports.