China experienced a significant level of travel activity during the 2025 Dragon Boat Festival holiday, which took place from May 31 to June 2. This period, also known as the Duanwu Festival, is traditionally celebrated with local dragon boat races and often sees many people taking short holidays. State broadcaster CCTV reported that an estimated 657 million passenger trips were taken during this year's festival, marking a 3% increase year-on-year. This surge in travel is closely monitored as an important barometer of Chinese consumer confidence.

Domestic travel within China saw robust activity. According to CCTV, there was an average of 219 million domestic trips per day throughout the holiday. Road travel was particularly popular for short-distance journeys, recording 600 million travellers, an increase of 3% compared to the previous year. The nation's rail network also experienced high passenger volumes, with the peak of return passenger flow occurring on June 2. To manage this demand, authorities added 1,279 trains to the existing network of over 11,000 passenger trains operating across the country. Air travel also reported robust passenger flow.

Cross-border travel also saw an uptick. Data released by China's National Immigration Administration (NIA) indicated that nearly 5.91 million cross-border trips were made during the three-day holiday, representing a 2.7 percent increase year-on-year. Reuters reported a similar figure of 5.9 million trips. The busiest day for cross-border travel was June 1, which recorded nearly 2.09 million trips according to the NIA.

A notable aspect of the holiday travel was the significant rise in foreign arrivals, largely attributed to China's expanding visa-free policies. Both sources reported that 231,000 foreign nationals entered the country visa-free during the festival. The National Immigration Administration highlighted this as a 59.4 percent year-on-year increase, underscoring the effectiveness of these measures. China has been actively refining its visa regulations since late 2023, introducing a series of traveler-friendly policies. Currently, the country grants unilateral visa-free access to citizens of 43 countries and allows visa-free transit for up to 240 hours for travelers from 54 countries, aiming to promote greater cross-border mobility.

The heightened travel activity during the Dragon Boat Festival is viewed against the backdrop of China's current economic climate. Consumption in the world's second-largest economy has faced pressures from sputtering growth and a prolonged property crisis. Additionally, uncertainty stemming from the U.S.-China trade war has impacted overall consumer confidence. Therefore, indicators like holiday travel figures are keenly observed for insights into the public's willingness to spend.

The holiday period also provided a boost to the entertainment sector, particularly cinemas. Total box office revenue reached 460 million yuan (approximately $63.9 million), a significant increase from the previous year's 384 million yuan, according to data from online ticketing platform Maoyan. Tom Cruise's latest film, "Mission: Impossible - The Final Reckoning," was a major draw, topping the box office charts and generating 228 million yuan, which accounted for half of the total revenue during the holiday. This strong performance in the film sector was seen as a positive indicator for the upcoming summer entertainment season.

In summary, the 2025 Dragon Boat Festival in China was characterized by a substantial volume of passenger travel, both domestically and across borders. The increase in trips, coupled with a significant rise in visa-free foreign entries, points to the impact of evolving travel policies and offers a glimpse into consumer activity. The festival's positive effect on the entertainment industry further contributes to the overall picture of consumption patterns during this important holiday period.