China’s tourism slowdown raises pressure on consumer spending

China’s domestic tourism market is weakening faster than expected, adding to concerns about the country’s broader consumer slowdown. Hotel demand has softened, with Hilton saying its China revenue per available room fell 2.2% in the second quarter and is expected to decline modestly for the full year. Industry data cited by Goldman Sachs showed hotel RevPAR across China down 6% year on year through late July, after a smaller decline in June. Lower occupancy and slightly weaker room rates have weighed on revenue, especially in popular travel destinations where price competition has intensified. The article says the weakness reflects fading postpandemic travel demand and softer household spending amid slower wage growth and cautious consumer behavior. At the same time, inbound tourism and premium hotels are performing better, helped by visafree policies and rising visits from foreign travelers.