Broke Chinese Gen Zs turn factory town of Zibo

Arief Budi

Global Courant 2023-04-29 06:25:00

BEIJING — Zibo, in eastern Shandong province, looks like any other industrial city in China, home to petrochemical, textile and porcelain factories.

Its biggest claim to fame is a visit by then-FIFA president Sepp Blatter in 2004, who proclaimed the city the birthplace of football based on vague links to an age-old ball game.

The city of 4.7 million is now one of China’s most popular tourist destinations, with the highest hotel room occupancy rate nationwide for the five-day Labor Day holiday that begins Saturday, according to data from leisure booking app Meituan.

When train tickets for the holiday season went on sale earlier this month, the Beijing-Zibo route sold out in less than a minute, according to domestic media.

Local authorities on Wednesday advised people not to visit the town over the holidays, warning it could struggle with the sudden influx and that hotels are almost fully booked.

Tourists, especially young people, flock to Zibo not for its famous scenic spots or historic sites, but for the promise of an inexpensive, value-for-money experience. It is best symbolized by the city’s barbecue skewer meals, where about 35 meat skewers can be bought for $10 (S$13.35).

As China quickly reopens after finally lifting its virus restrictions, scenes like the one in Zibo show how despite high expectations that the economy will recover immediately, the financial blow of three years of Covid Zero is still keeping residents’ purchasing power in check .

This is especially true for younger people who face historically high unemployment rates, while traveling abroad remains out of reach for many given the high ticket prices.

Searches for domestic hotels for Labor Day are up nearly 200 percent from 2019, while those for overseas destinations have only recovered to about 70 percent of pre-Covid-19 levels, according to data from online booking site Ctrip .com.

“There is a difference in the rate of consumption recovery,” said Ms. Ada Li, an analyst at Bloomberg Intelligence. “Lower income groups, who would be most affected by pandemic and unemployment, tend to be more cost conscious as they have less disposable income. It will take longer for their demand to recover.”

Traveling to Zibo makes sense for many young people, who crave cheap food and the chance to mingle with friends after three years of social isolation and economic stress.

“This is my first trip since the end of Covid,” said student Chris Wu, who plans to spend just 1,200 yuan (S$232) on her Labor Day vacation in Zibo and can’t afford to go to the to go abroad.

She said she plans a “special forces” style vacation, using a popular term describing a short trip with a packed itinerary to minimize costs.

The fact that these consumers are willing to travel to another city shows that “even the money-conscious group is willing to spend money on experiences,” Ms. Li said.

Broke Chinese Gen Zs turn factory town of Zibo

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