According to a Citi research report, official data from mainland China shows that during the 9-day Lunar New Year holiday, domestic tourism reached 596 million visits and generated revenue of RMB 803 billion, representing year-on-year growth of approximately 19% compared to last year’s 8-day holiday period. This indicates that per capita spending remained largely stable year-on-year. Meanwhile, average daily tourist visits and industry revenue grew by 5.7% and 5.5% respectively year-on-year, reflecting commendable performance.
The total passenger volume during the holiday increased by 9.4% year-on-year, with both short- and long-distance travel witnessing notable growth. The average daily cross-border traffic rose by 10.1% year-on-year, including a 10.2% increase in Chinese citizens crossing borders. This performance was robust, albeit slightly below the forecast by the National Immigration Administration, considering the impact of events in Japan.
Citi believes that the Lunar New Year holiday travel demonstrated steady performance, reflecting continued healthy momentum in both domestic and outbound tourism markets, which is beneficial for online travel platforms. However, the share price of Trip.com (09961.HK) may continue to be affected by the ongoing investigation by the State Administration for Market Regulation. The bank maintains its "Buy" ratings for both Trip.com (09961.HK) and Tongcheng (00780.HK), with a target price of USD 82 for Trip.com (TCOM.US) shares and HKD 28 for Tongcheng.
