Shanghai experienced a significant boost in consumption during the May Day holiday, with a total expenditure of 59.46 billion yuan ($8.24 billion) recorded both online and at physical stores.

This marked a notable year-on-year increase of 13.1 percent, reflecting the city's vibrant economy and growing appeal as a tourist destination.

From April 30 to May 4, 33.15 billion yuan was spent on in-store purchases, while online transactions amounted to 26.31 billion yuan.

Statistics revealed that 35 monitored commercial districts across the city received a total of 29.93 million visitors, representing a year-on-year increase of 12.8 percent.

The surge in consumption was particularly evident among inbound visitors, who spent 455 million yuan during the holiday period, showcasing a year-on-year increase of 211.6 percent.

This uptick followed Shanghai's recent efforts to optimize its departure tax refund system, including the installation of self-service machines for generating tax refund applications at stores with high demand for such services, such as the Shanghai New World Daimaru department store.

These machines, available in bilingual mode, streamline the tax refund process by scanning passport information.

The Shanghai Municipal Tax Service of the State Taxation Administration reported an 81 percent year-on-year increase in tax refund sales during the first four months of 2025.

Currently, 1,013 enterprises and over 3,300 merchants in the city have benefited from the tax refund services.

A contributing factor to the heightened consumption levels is the subsidies offered during the 2025 Shanghai Shopping Festival.

Merchants in sectors like home appliances, furnishings, and electronics introduced products with discounts for trade-in purchases.

Additionally, districts such as Pudong New Area and Jiading district provided subsidies ranging from 1,000 to 10,000 yuan for car trade-ins and replacements.

To further incentivize spending, districts issued consumption vouchers for use at key commercial districts, including Pudong New Area, Jing'an and Yangpu districts.

These vouchers covered a wide range of categories such as clothing, cosmetics, gold and jewelry, and anime goods.

The dining sector also saw a boost, with dining consumption vouchers contributing to total spending of 79.9 million yuan.

Dine-in traffic increased by 9.8 percent, with a notable 37.1 percent surge in patrons from outside the city.

Various citywide festivals, including the 3rd West Bund International Coffee Lifestyle Festival and the First Block Car Life Festival, further stimulated consumption and attracted visitors to different districts.

Festivities also catered to emerging consumption sectors such as anime-related products and pets, with globally debuting flagship shops opening in the Huangpu district and pet-friendly dining options available in certain shopping malls in Changning district.

Sources: Shanghai Observer, Jiefang Daily