China looks to ‘experience economy’ for a consumption lift

(By Caixin journalists Bao Yunhong, Feng Yiming and Wang Xintong)

Chinese travellers are no longer content to simply admire scenic views — they want an experience.

The shift was evident during the Lunar New Year holiday in February. Keyword searches for “intangible cultural heritage” and “folk customs” on e-commerce platform Meituan jumped 34% and 30% year-on-year. A surge in tourist orders in areas with folk attractions helped domestic travel shatter records with 596 million trips and 803.5 billion RMB (US$116 billion) in tourism spending.

Folk activities such as fish lantern parades helped boost travel bookings in Huangshan, East China’s Anhui province, by 32% year-on-year, data from Trip.com Group Ltd. show. In the southern province of Guangdong, Shantou and Chaozhou lured tourists with rhythmic Yingge folk dances, helping to boost orders by 36% and 31%, respectively.

Other cultural hubs also benefitted. Jingdezhen in Jiangxi province recorded a 48% increase in orders as visitors flocked to try ceramic making, while Quanzhou in Fujian province saw bookings rise 12%, helped by experiences such as traditional hairpin flower styling.

The demand for experiences has been propelled by favourable policies, viral videos and changing consumer preferences, according to Huang Yunxuan, vice-president of hotel and hospitality for Greater China at Jones Lang LaSalle Inc.

The trend is part of the growing “experience economy”, which Chinese policymakers increasingly view as a catalyst for domestic consumption.

Tourism is no longer just about visiting famous landmarks and taking in the scenery, said Minister of Culture and Tourism Sun Yeli at a press conference on 7 March on the sidelines of the annual “Two Sessions” political meetings. “People are more willing to step into local lives and experience the culture, paying for shows, lining up for trendy toys, and travelling simply to check out a viral city,” Sun said, adding that products that emphasise immersive and emotionally engaging experiences are more likely to gain market traction.

Premier Li Qiang highlighted “cultural tourism” as an area to unlock spending and a potential boost to service consumption as he delivered the government work report at the opening session of China’s top legislature on 5 March.

But while policymakers see the trend as an economic engine and local governments and businesses race to turn culture, attractions and sporting events into tourism experiences, the boom is also bringing challenges — from managing demand between peak and off-peak seasons to curbing a wave of copycat attractions.

Visually striking and highly interactive events, such as fireworks shows and lantern parades, have proven to be powerful visitor magnets.

During this year’s Lunar New Year holiday, fireworks in Liuyang, Hunan province, drove a 130% increase in hotel bookings, while folk parades in Pingyao, Shanxi province, lifted hotel occupancy by 47%, Qunar.com Inc. data showed.

Hotel bookings in Guangdong’s Shantou rose more than 80% from last year’s holiday, driven by the popularity of the Yingge dance, a dynamic art form that blends drama, dance and martial arts, according to Tongcheng Travel Holdings Ltd.

To cater to the surge in visitors, a cultural venue in Shantou introduced immersive Yingge dance packages, providing makeup, photography and guided street performances, drawing dozens of groups every day at peak times, according to Xu Weiguang, one of the venue’s founders.

Similarly, Huangshan, a city named for its renowned scenic mountain, is pivoting from selling scenery to selling experiences. The city’s average daily visitor numbers rose 27.2% during the normally quiet winter season, driven by attractions such as the local fish lantern parade.

Foreign tourists are also increasingly interested in experiencing Chinese life and culture more than just visiting landmarks, said Zhou Xiaoguang, general manager of Guilin Tang Dynasty Tours Co. Ltd., which specialises in inbound tourism. Some travellers have added activities such as traditional brocade weaving, acupuncture and cupping therapies to their itineraries, Zhou said.

“Outstanding folk traditions and intangible cultural heritage can become long-term tourism assets, but the first step is to turn these resources into products,” said Zhou Haitao, chief executive officer of tourism publication Wenlv.

In an increasingly competitive tourism market, simply relying on scenic resources is no longer enough, he said, adding that destinations must attract visitors with better product design and operations.

A theme park in Kaifeng, Henan province, which recreates the martial arts culture of China’s Song dynasty (960–1279 AD), updates its large-scale performances every two to three years. Consequently, the share of projects achieving revenue growth through operations rather than expansion investment rose from less than 20% in 2019 to nearly 60% in 2024, said Wang Xiaofeng, chairman of cultural tourism operator Zhonglian Aobo.

Livestreaming gave the park another boost. A live interactive matchmaking show went viral in 2024, amassing billions of views online. The viral momentum translated into sustainable revenue growth: The park drew 24.5 million visitors in 2025, up 146.9% year-on-year, generating revenue of 1.3 billion RMB, seven times its 2023 turnover. The surge has also lifted Henan’s broader tourism industry, drawing more than 1.1 billion visits in 2025 and generating over 1 trillion RMB in tourism revenue.

Grassroots sports have proven equally potent. The Jiangsu Football City League, dubbed the “Suchao”, helped push tourism spending by non-local visitors in Jiangsu province to 660 billion RMB in 2025 on the Chinese payment platform UnionPay, the highest in the country. Following its success, a wave of regional leagues has emerged nationwide in 2026.

However, experts warn against simple imitation. The popularity of Suchao stems from Jiangsu residents’ strong local identities and the competitive spirit among its cities, while the province’s broader economic prosperity provides a solid consumer base, Zhou said. He added that regions organising sports leagues should avoid simply copying formats from elsewhere. What sets successful events apart, he said, is the ability to identify and amplify distinctive local characteristics.

In the future, those who can continually create compelling content, stimulate spending and enhance visitor experiences will stand out among the competition, Wang said.

At the same time, destinations riding the experiential tourism boom are struggling to manage sharp swings in visitor demand between peak and off-peak seasons.

In Shantou, prices for budget hotels typically jump from their usual range of 300 to 500 RMB to nearly 2,000 RMB per night during the Lunar New Year holiday. Wenlv’s Zhou said the local market lacks budget hotels — the preferred accommodation choice for most Chinese travellers.

“The contrast between peak and off-peak seasons in Shantou’s tourism market is extremely pronounced, bringing large economic fluctuations and making management more difficult,” Xu said. He emphasised the need to develop new tourism attractions and stage the popular Yingge dances all year round, not just during holidays. The region has a rich merchant history and overseas diaspora it could tap to smooth out seasonal economic volatility.

Additionally, the rapid spread of similar attractions is raising concerns about homogenisation across destinations. “Da Tie Hua”, also know as Iron Flower, is a folk performance in which molten iron is flung in the air to create an explosion of sparks, resembling fireworks. While traditional to provinces such as Henan, it has now been replicated nationwide, a Tongcheng Travel executive said.

Wang cautioned that while many cities are trying to monetise local culture, fewer than 10% successfully break through to attract a national audience. Tourists usually only resonate with food or culture that is deeply connected to them, so for local culture to become popular nationwide, it must have a certain mass appeal.

Achieving real differentiation requires people who understand both traditional culture and modern tourism operations, Huang said. “Only when visitors move from simply watching or checking in to engaging more deeply and emotionally can local folk and heritage tourism gain lasting vitality.”

This article was first published by Caixin Global as “In Depth: China Looks to ‘Experience Economy’ for a Consumption Lift”. Caixin Global is one of the most respected sources for macroeconomic, financial and business news and information about China.

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