BOC International: The integration of culture and tourism ignites the domestic cultural tourism market, and the inbound and outbound tourism during the Dragon Boat Festival is booming.

BOC International released a research report stating that the overlap of the Dragon Boat Festival holiday and Children's Day has created a synergistic effect between parent-child demand and folk culture. Data from Ctrip shows that parent-child orders account for 25% of overall travel orders, with an 80% increase in bookings for parent-child group tours; ticket bookings for theme parks have increased by 127%. During the Dragon Boat Festival holiday, the Jiangsu City Football League ("Su Super League") and the South Dragon Boat Race have sparked a fusion of sports and cultural tourism. On the other hand, according to data from the National Immigration Administration, a total of 5.907 million Chinese and foreign nationals entered and exited during the Dragon Boat Festival period, with an average of 1.969 million people per day, a year-on-year increase of 2.7%. Among the foreign nationals entering the country, there were 231,000 people entering under visa-exemption policies, an increase of 59.4% compared to the previous year. According to Ctrip data, inbound tourism orders increased by nearly 90%, and the GMV of inbound tourism tickets doubled compared to last year. BOC International's main points are as follows: - Short-distance leisure trips dominate during the Dragon Boat Festival holiday - Folk experiences have become the key to cultural tourism traffic - The overlap of the two holidays has a significant effect, with high parent-child economic consumption; performances and events ignite the cultural tourism market industry chain During this Dragon Boat Festival holiday and Children's Day overlap, parent-child demand and folk culture have formed a synergistic effect. Ctrip data shows that parent-child orders account for 25% of overall travel orders, with an 80% increase in bookings for parent-child group tours; ticket bookings for theme parks have increased by 127%. During the Dragon Boat Festival holiday, the Jiangsu City Football League ("Su Super League") and the South Dragon Boat Race have set off a storm of integration between sports and cultural tourism. The "Su Super League" has transformed inter-city competition in Jiangsu into a catalyst for cultural tourism consumption. In the Yancheng area, football tickets can be exchanged for free tickets to scenic spots, attracting over 60,000 visitors from Yangzhou in a single match; Yancheng attracts thousands of visitors with "watching the game and receiving egg cakes", Nanjing offers discounts on accommodation, shopping, and tickets to increase business turnover, and Huai'an City hosts a cultural tourism festival with exclusive discounts for ticket holders, leading to a 30% increase in tourist traffic at related scenic spots during the event. During the Dragon Boat Festival holiday, over 180,000 football fans flocked to various home cities to watch games, with a 14.63% increase in total consumption through the UnionPay cross-city channel for cultural tourism. Jiangsu Province, through timely marketing and operations, promotes consumption through the football matches, driving the entire cultural tourism industry chain. Inbound and outbound tourism is booming, with a high increase in visa-exempt visitors According to data from the National Immigration Administration, a total of 5.907 million Chinese and foreign nationals entered and exited during the Dragon Boat Festival period, with an average of 1.969 million people per day, a year-on-year increase of 2.7%; among foreign nationals entering the country, there were 231,000 people entering under visa-exemption policies, an increase of 59.4% compared to the previous year. According to Ctrip data, inbound tourism orders increased by nearly 90%, and the GMV of inbound tourism tickets doubled compared to last year; popular scenic spots, apart from Disneyland and Universal Studios, include Jiuzhaigou, Zhangjiajie, Tianmen Mountain, and Huanglong. Additionally, various cultural tourism destinations are actively promoting in the international market, with Ctrip reporting a 32% increase in inbound tourist visits to Huangshan during the Dragon Boat Festival. Outbound tourist destinations are concentrated within a 3-hour flight radius, with the top five destinations being Japan, Hong Kong, South Korea, Thailand, and Malaysia, with water-related activities being a popular option for travelers this Dragon Boat Festival. Investment recommendations The domestic tourism market operated smoothly during the Dragon Boat Festival holiday, and inbound and outbound tourism markets were booming, with expectations of continued recovery. We recommend companies in the travel chain and related industries that have high-quality resources, strong operations, and growth prospects: Guangzhou Lingnan Group Holdings (000524.SZ), UTour Group (002707.SZ), Changbai Mountain Tourism (603099.SH), Huangshan Tourism Development (600054.SH), Songcheng Performance Development (300144.SZ); benefiting from the recovery of business travel flows and increased market share after the pandemic, SSAW Hotels & Resorts Group (301073.SZ), Shanghai Jin Jiang International Hotels (600754.SH), BTG Hotels (600258.SH); the growth of the cross-border tourism market is expected to drive the recovery of airport duty-free shops, the implementation of new local duty-free policies, and upgrades to the departure tax refund policy contributing to incremental revenue, we recommend China Tourism Group Duty Free Corporation (601888.SH), Wangfujing Group (600859.SH), among others. The trend of integration of sports and culture tourism is booming again, and we recommend paying attention to China Sports Industry Group (600158.SH), Funshine Culture Group (300860.SZ), and others. Main risks faced by the rating Travel demandInsufficient recovery, macroeconomic recovery falling short of expectations.Je suis dsol, je ne parle pas franais.