This article only represents the author's own views.

Freed from Covid restrictions, hordes of Chinese holiday makers set off on long-awaited adventures during this year’s “Golden Week” getaway, in an exodus that was expected to deliver a bonanza for the travel industry. But the splurge on travel has fallen short of the loftiest projections, leaving some investors out of pocket.

When China eased its travel controls, shares in the country’s leading operator of duty-free stores soared on an anticipated release of pent-up demand. At its peak, the share price of China Tourism Group Duty Corporation Ltd. (CTG) (1880.HK; 601888.SH) reached HK$280 in January this year. But the company’s latest quarterly earnings, along with data for the recent holiday period, were not stellar enough to satisfy market hopes for astronomical profits. CTG shares tumbled last Friday to close at just HK$92.35, 67% below the January peak. This year, China’s Mid-Autumn Festival coincided with the Golden Week holiday, raising hopes of an intense surge in travel-related consumption. Figures from China’s tourism ministry show a rise in spending, but it was not quite the supercharged boost that some had been looking for. Domestic tourism revenue jumped 130% to 753 billion yuan ($103 billion) in the eight-day holiday from Sep. 29 to Oct. 6, compared with the same period a year earlier. But the spending was only 1.5% higher than the equivalent period in 2019 and failed to match the government’s forecast of 782 billion yuan.