China is experiencing the most stubborn economic downturn in decades. The housing sector is in its third year of a slump. The stock market is testing new lows. Youth unemployment remains worryingly high, even as the government tweaks the statistics.
There is a bright spot, however. Young people are busy traveling, taking advantage of the free time — there are few good jobs out there — as well as the consumer power that comes with a deflationary economy.
As China enters the month-long Lunar New Year travel season, expectations are high that young millennials and Gen Z, inspired by hit TV shows such as Divas on the Road, will be touring around. After all, we witnessed a busy Jan. 1 long weekend. Domestic tourists totaled 135 million, up 9 percent from the pre-pandemic 2019 level. Those aged below 34 were the driving force.
They went to the most unexpected places. The northeast city of Harbin, which has been hosting the annual Ice and Snow Festival for decades, became a top destination. It was a boom for an icy, freezing place that has long suffered from population decline and fiscal struggles.
Social media has played a big role. Entertained by the “southern potatoes,” a nickname given to tourists wrapped in layers of winter clothes, locals offered visitors free rides across the city. The government installed small, warm houses as well as an artificial moon above a local Russian Orthodox Church, to provide better lighting, and cater to a generation obsessed with taking Instagram-worthy selfies. All these welcoming gestures were recorded and amplified on popular platforms.
Shandong province’s Zibo, a small, declining industrial town in eastern China, offers another case study for places that went viral. Young Chinese flocked to the city of 4.7 million, where $10 can buy roughly 35 meat skewers. They were pleasantly surprised by “how sincere and honest” local businesses were, as they didn’t raise prices even when tourism demand surged.
Open-minded and budget-conscious youths are drawn to hidden gems. They prefer hanging out with the locals and learning ethnic minorities’ way of life to shopping in glitzy resorts such as on the island of Hainan. And when they have saved enough money for overseas trips, they are following in the footsteps of those Divas on the Road, who ventured to Saudi Arabia in the latest season. During the eight-day October holiday, Chinese descended on Dubai, en route to places like Egypt and Jordan.
These are healthy developments. When economic prospects dim, it’s a good time to slow down and reflect. During the 1974 recession, Steve Jobs travelled to India in search of spiritual teachings. So who knows? Those digital nomads hanging out in “Dalifornia,” a nickname for Dali in
southwest China, known for its eastern Himalayan scenery and work-life balance, may just be able to find their soulmates and business partners, too. A few might even come up with ideas that can reshape the world.
For years, the hospitality industry in popular destinations only saw dollar signs when tourists arrived. Commercialism came before anything else. But young millennials and Gen Z are creating seismic changes in consumer tastes and economic fortunes. Last year, duty-free sales in subtropical Hainan were 12 percent below the 2021 peak. The gaming hub of Macau fared even worse, and no longer has the power to charge exorbitant hotel rates.
Travel expands one’s world view, but trips that evolve around shopping sprees do not. Young Chinese are discovering genuine hospitality and alternative ways of life on a budget. We all cherish our backpacking days — they will, too.
Shuli Ren is a Bloomberg Opinion columnist. Views do not represent the stand of this publication.
Credit: Bloomberg
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