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China's retail sales rose by 16 percent year-on-year during the week-long May Day holiday, largely driven by large retailers, the Ministry of Commerce said yesterday.

 

Retail sales of consumer goods hit 278 billion yuan (US$34.75 billion) over the holiday period, according to statistics released by the ministry. The figure was nearly half the country's average monthly retail sales in the first quarter of this year.

 

"Large chain enterprises, cashing in on their advantages in sales networks and brands, played a leading role in the 'golden week' market," the ministry's department of market operation regulation said.

 

Distribution businesses, particularly shopping malls, supermarkets and electronics chain stores in urban areas, drew in customers with shopping festivals, fairs and other promotions.

 

Statistics from the ministry show that the major 1,000 retail companies achieved a sales volume of nearly 50 billion yuan (US$6.25 billion) from May 1 to May 7, up 18 percent from a year ago.

 

The week-long holiday has become a great opportunity for businesses in more industries to make money.

 

China's catering sector enjoyed robust growth during the "golden week," especially driven by demand for wedding banquets, the ministry said.

 

Many couples in China married during the May Day holiday week, traditionally a good time for a wedding, especially this lunar year of the dog when there are two "springs" believed to bring good luck.

 

Some couples in Shanghai who were unable to book a wedding banquet in the city travelled to nearby cities in Zhejiang and Jiangsu provinces for their weddings.

 

Statistics published by the National Tourism Administration on Sunday show that during this May Day holiday the number of tourists visiting 116 Chinese scenic spots grew 12.9 percent year-on-year, with ticket income rising 21.6 percent.

 

Overall tourism revenue in 38 major Chinese cities during the seven-day holiday exceeded 20 billion yuan (US$2.5 billion).

 

Since the "golden week" holiday system which includes week-long holidays for the Lunar New Year in January or February, Labor Day in May and the National Day in October was introduced by the government in the late 1990s, the three holidays have become the most important sales periods for domestic retailers.

 

This is despite disputes about the rationality of "golden week," which has exerted great pressure on the transport, catering and hotel and tourism infrastructure, according to experts.

 

(China Daily May 9, 2006)