Bank of China Securities: Cultural, sports and tourism integration ignites the popularity of inbound and outbound Dragon Boat Festival tours in both directions in the domestic cultural tourism market

The Zhitong Finance App learned that BOC Securities released a research report saying that the Dragon Boat Festival holiday and Children's Day overlap, creating a synergy between the needs of parents and children and folk culture. According to Ctrip data, parent-child orders accounted for 25% of total travel orders, and the popularity of parent-child group product bookings increased 80%; theme park ticket reservations increased 127%. During the Dragon Boat Festival holiday, the Jiangsu City Soccer League (“Su Super League”) and the South China Dragon Boat Race simultaneously set off a storm of cultural, sports and tourism integration. On the other hand, according to data from the State Administration of Immigration, a total of 5.907 million Chinese and foreign personnel entered and left the country during the Dragon Boat Festival, with an average of 1.969 million visitors per day, an increase of 2.7% over the previous year; among foreigners entering the country, 231,000 were under the visa-free policy, an increase of 59.4% over the previous year. According to Ctrip data, inbound travel orders increased by nearly 90%, and the GMV for inbound travel tickets increased 1.5 times compared to last year.

The main views of BOC Securities are as follows:

Short-distance leisure tours dominate during the Dragon Boat Festival holiday

According to data from the Ministry of Culture and Tourism, during the three-day Dragon Boat Festival holiday, 119 million people traveled domestically, up 5.7% year on year; total domestic travel expenses were 42,730 billion yuan, up 5.9% year on year; the unit price for passengers was 359.08 yuan, -2.1% year on year. According to data from the Ministry of Transport, during the Dragon Boat Festival holiday, the entire society is expected to move 657 million people across regions, +3.0% over the same period last year. The Dragon Boat Festival holiday is short, and it is linked to the May Day holiday and summer vacation respectively. The travel market is dominated by local tours and surrounding tours.

Folk experiences become the password for cultural tourism traffic

According to data released by various provinces and cities, Guangdong Province received the largest number of visitors, with a cumulative total of 23.21 million visitors, an increase of 20.6% over the previous year; it achieved tourism revenue of 11.44 billion yuan, an increase of 25.6% over the previous year. As a traditional festival, Dragon Boat Festival is a major trend in cultural tourism consumption. There are many dragon boat races and intangible heritage events in Guangdong, and more attention is paid to traditional folklore, so it is popular among tourists.

The superposition effect of the double festival is remarkable, and the parent-child economy accounts for a high proportion; performance events ignite the cultural tourism market industry chain

This Dragon Boat Festival holiday overlaps with Children's Day, and there is a synergy between the needs of parents and children and folk culture. According to Ctrip data, parent-child orders accounted for 25% of total travel orders, and the popularity of parent-child group product bookings increased 80%; theme park ticket reservations increased 127%. During the Dragon Boat Festival holiday, the Jiangsu City Soccer League (“Su Super League”) and the South China Dragon Boat Race simultaneously set off a storm of cultural, sports and tourism integration.

The “Soviet Super League” League turned the “Bulk Jiangsu” inter-market competition into a catalyst for cultural tourism consumption. The Yancheng Division used tickets to exchange free tickets for scenic spots to achieve closed-loop drainage for spectators and tourism; Changzhou opened free tickets to all A-level tourist attractions to Yangzhou residents, attracting more than 60,000 visitors to Yangzhou in a single game; Yancheng attracted 10,000 visitors to check in with “watching the game and delivering egg cakes”. Nanjing used the “tickets+accommodation+shopping” promotion package to drive business district turnover growth. Huai'an City launched a cultural tourism consumer carnival to show off at the cultural tourism consumer carnival Ticket stubs enjoy exclusive shopping discounts, and the number of visitors to the relevant scenic spots during the competition increased by 30% compared to normal.

More than 180,000 fans poured into various home cities to watch the game during the Dragon Boat Festival holiday. Total cultural tourism spending on UnionPay offsite channels in the six home cities increased by 14.63%. This time, through timely marketing and operation, Jiangsu Province promoted consumption through events, converted traffic, and fueled the entire cultural tourism consumption industry chain.

Inbound and outbound tours are popular in both directions, and the number of visa-free inbound tourists increased year-on-year

According to data from the State Administration of Immigration, a total of 5.907 million Chinese and foreign personnel entered and left the country during Dragon Boat Festival, with an average of 1.969 million visitors per day, an increase of 2.7% over the previous year; among foreigners entering the country, 231,000 were under the visa-free policy, an increase of 59.4% over the previous year. According to Ctrip data, inbound travel orders increased by nearly 90%, and the GMV for inbound travel tickets increased 1.5 times compared to last year; in addition to Disney and Universal Studios, natural scenic spots occupied 4 seats, respectively, in Jiuzhaigou, Zhangjiajie, Tianmen Mountain, and Huanglong; in addition, cultural tourism from all over the world is also gaining strength in the international market. On the Ctrip platform, the number of inbound visitors to Huangshan Mountain at Dragon Boat Festival increased 32% year over year. Outbound travel destinations are concentrated in the 3-hour cruise circle. The top five most popular destinations are Japan, Hong Kong, South Korea, Thailand, and Malaysia. Going abroad to play in the water is also a popular option for Dragon Boat Festival visitors this year.

Investment advice

The domestic travel market is running smoothly during the Dragon Boat Festival holiday, and the inbound and outbound travel market is hot in both directions, and it is expected that the recovery trend will continue. We focus on recommending travel chain and related industry chain companies with high resources, strong operations, and potential for extended growth: Lingnan Holdings (000524.SZ), Zhongxin Travel (002707.SZ), Changbaishan (603099.SH), Huangshan Tourism (600054.SH), and Songcheng Performing Arts (300144.SZ); hotel chain brands that have benefited from a recovery in commercial passenger traffic and increased market share after the pandemic (); cross-border 600754.SH 600258.SH The growth of the travel market is expected to drive the restoration of tax exemption at airports. The implementation of the new duty-free policy in the city and the upgrading of the departure tax refund policy are expected to contribute to the increase. The trend of cultural, sports and tourism integration is once again popular. It is recommended to focus on the Chinese sports industry (600158.SH) and Fengshang culture (300860.SZ). 601888.SH 600859.SH

The main risks faced by ratings

The recovery in travel demand was insufficient, and macroeconomic recovery fell short of expectations.