Fresh policy support has arrived for the tourism industry, as three government bodies — the Ministry of Natural Resources, the Ministry of Culture and Tourism, and the National Forestry and Grassland Administration — have jointly issued new guidelines. These measures aim to optimize natural resource allocation across multiple dimensions, foster orderly industry development, and unlock new potential in domestic demand. The policy framework outlines five key areas: strengthening spatial planning, refining land-use controls for tourism projects, improving natural resource supply mechanisms, encouraging utilization of existing spaces, and enhancing service quality and regulatory efficiency.
Travel booking data points to a robust upcoming holiday period. Railway tickets for the day before the Mid-Autumn Festival (September 24) went on sale recently, with popular routes selling out quickly, according to Tongcheng Travel. This surge has driven a sharp rise in flight booking interest, with searches for domestic routes during the holiday period jumping more than 160% week-over-week. Data from Umetrip shows that as of September 10, advanced domestic flight bookings for travel between September 25 and October 7 have exceeded 6.88 million tickets, representing a year-on-year increase of approximately 12%.
Travel agencies are also seeing strong momentum. Li Mengran, media relations manager at Utour, noted that private small-group tours (typically 2-8 people) are becoming increasingly mainstream, with bookings for such products rising notably — up 20% compared with the same period in previous years. Overall domestic travel volume during the Mid-Autumn and National Day holidays is expected to climb around 50% year-on-year. Regionally, South China continues to outperform, driven by the popularity of a recent cultural phenomenon, with traveler numbers soaring 381% year-on-year. Meanwhile, southwestern destinations including Yunnan, Guizhou, Sichuan, and Chongqing are attracting large crowds drawn to their distinctive ethnic cultures and intangible heritage, with visitor numbers up 556%. Northwestern regions such as Xinjiang, Gansu, and Qinghai are also seeing strong demand thanks to picturesque autumn scenery, with bookings rising 188% from a year earlier.
Looking at travel patterns, GZL International Travel Service anticipates three departure peaks for outbound tourism during this holiday window. The first wave, expected to be the largest, will occur around September 25-26 during the Mid-Autumn period, as travelers take three days of leave to create a 13-day break, fueling demand for outbound long-haul trips exceeding ten days. The second wave will depart on October 1, National Day itself, primarily featuring family travelers. A third wave is expected to set off mid-holiday, with travelers leveraging post-festival leave for off-peak travel and favoring medium-to-long-haul itineraries spanning six to nine days.
From a broader perspective, Tongcheng Travel highlights that the "take 3 days off for 13 days of vacation" strategy is pushing booking decisions earlier, accelerating both searches and reservations on its platform. On the supply side, airlines are expanding international routes while destinations roll out visa facilitation measures, providing foundational support for a surge in long-haul cross-border travel. According to research from Wanlian Securities, valuations across the social services sector have retreated to historically low levels, with the market having largely priced in current weaknesses. Three key indicators — business travel, inbound tourism, and same-store restaurant sales — have clear data validation windows in Q3 and Q4. Should marginal improvements materialize, valuation recovery could offer substantial upside. Over the long term, China's services consumption share has rebounded to 46%, approaching the structural tipping point of 50%, suggesting services consumption is poised to enter a phase of accelerated penetration.
Related stocks worth watching include Trip.com Group (09961), which received an upgraded target price of HK$508 from UOB Kay Hian with a "Buy" rating maintained. The brokerage notes that the State Administration for Market Regulation has formally issued a RMB 5.18 billion penalty against the company — including RMB 1.66 billion in confiscated illegal gains and RMB 3.52 billion in fines — related to alleged abuse of market dominance through exclusive partnerships and minimum pricing requirements. UOB Kay Hian believes this decision officially concludes the antitrust investigation, removing the core regulatory uncertainty surrounding the company.
Tongcheng Travel (00780) reported second-quarter and first-half results on August 24, demonstrating continued growth in user scale and service capabilities as travel becomes more embedded in everyday life. As of Q2 2026, the platform's annual paying users reached 254 million, with cumulative annual service volume of 2.04 billion person-trips. User consumption frequency grew 1.8% year-on-year, while annual revenue per user (ARPU) increased 10.3%.
H World Group (01179) delivered solid Q2 2026 results, with adjusted EBITDA climbing 20% year-on-year to RMB 2.7 billion, driven by continued hotel network expansion, RevPAR improvement, and greater contributions from asset-light franchising, according to BOC International. Encouragingly, China operations saw RevPAR grow 1.1% year-on-year despite adverse weather during the quarter. Management has raised its 2026 revenue guidance while reiterating expectations for low-single-digit RevPAR growth. The company also announced a new three-year, US$2.5 billion shareholder return plan, which should further enhance capital returns and support valuation. The "Buy" rating is maintained.
China Tourism Group Duty Free (01880) maintains a solid foundation in Hainan and is well-positioned to capitalize on its leading position in the region's duty-free market to expand market share, according to Great Wall Securities. Looking ahead, the brokerage expects the company's performance to improve sequentially, supported by strong summer travel demand, and remains optimistic about its growth momentum.