Booming Ice and Snow Economy

Data from Meituan show that during November 2024, the number of searches for skiing on the travel platform increased by 83 percent compared to the previous month. Beijing, Shanghai, Tianjin, Shenzhen, and Chengdu logged the highest clicks.

“After the Beijing 2022 Winter Olympics, China’s winter sports continue to gain popularity,” said Zhou Jinqiang, vice president of the Chinese Olympic Committee. He noted that this is mainly reflected in the large number of participants, increase of venues and facilities, and numerous events held across the country.

According to the General Administration of Sport of China, during the period from the Beijing 2022 Winter Olympics to April 2024, the number of participants in winter sports nationwide reached 313 million. “The vast number of participants has opened up broad prospects for China’s winter economy,” said Wang Qiyan, a senior researcher at the Yangtze River Economic Zone Research Institute of Renmin University of China.

Flourishing industry

The rise of winter sports has not only aroused people’s enthusiasm for sports, but also promoted economic consumption and the recovery of the cultural and tourism market. In recent years, many places have created a series of unique tourism products and routes by tapping into local resources for winter sports.

Harbin in northeast China’s Heilongjiang Province gained immense popularity in 2023 thanks to its resources for winter sports and tourism. People’s enthusiasm remained undiminished for the snow season in 2024. Chengde in Hebei Province launched five premium routes centered around unique winter tourism, such as hot springs, folk customs, and sports events. Tacheng in Xinjiang Uygur Autonomous Region focused on ski resorts and utilized a cultural, tourism, and sports integration model to carry out a variety of activities, contributing to the development of winter tourism.

In addition, several international winter sports events have been successfully held in China in recent years, significantly boosting local economic development. Since 2024, the General Administration of Sport of China has organized a series of tourism activities, further enhancing the development of the country’s winter sports economy.

Yang Xuedong, an official with the General Administration of Sport of China, said various forms of winter activities will be organized across different regions to better satisfy the needs of the public and unleash the potential of the sports economy.

Ski equipment and gear are the foundation for the development of winter activities and an important component of the winter economy. New technologies represented by 5G, artificial intelligence, and virtual reality are becoming a strong engine for promoting the high-quality development of ski equipment and gear, giving rise to many new products and business models.

A new growth engine

Ice and snow economy in China increased from RMB 270 billion in 2015 to RMB 970 billion in 2024, said an industry research report. It is expected to exceed RMB 1 trillion by 2025, showing a rapid development momentum. Provinces in both northern and southern China are showing a favorable trend in winter tourism development.

The number of people engaging in winter leisure tourism across the country during the 2024-2025 winter season is expected to exceed 500 million, up from 385 million during the previous winter season. The total revenue from winter leisure tourism is anticipated to exceed RMB 700 billion in the 2024-2025 winter season. The data highlights the vibrancy of China’s winter economy, while further policy support has bolstered market confidence.

The State Council, China’s cabinet, recently released 24 measures to boost ice and snow economy. The document pledged efforts to develop the entire industrial chain and have the winter economy grow to RMB 1.2 trillion in scale by 2027, and RMB 1.5 trillion by 2030.

According to Peng Fuwei, head of the Department of Social Development of the National Development and Reform Commission, promoting the winter economy has a positive impact on stimulating domestic demand, spurring employment, and expanding consumption.

“The rapid development of China’s winter economy is attributed to the benefits brought by the Beijing Winter Olympics, which has driven rapid development of and historic breakthroughs in winter sports and industry. The winter economy will become a new growth engine,” Wang Qiyan explained.

High-quality development

Nowadays, it has been a consensus in the winter economy sector that high-quality development of winter sports could spur the development of the ice and snow economy. According to Wang, each measure in the State Council document is highly targeted. One of the highlights is that the ice and snow culture will be integrated into the entire industrial chain. Ice and snow culture is the foundation of the ice and snow economy. It provides a profound cultural foundation and strong internal driving force for the sector, and will enhance the added value and competitiveness of the sector.

The rise of leading businesses and outstanding small and medium-sized enterprises symbols the maturity of an emerging industry. The State Council document encourages various regions to adapt to local conditions, and utilize public spaces, such as parks and urban squares, to construct winter sports venues accessible to the public. Incentives were pledged for the private sector to remodel old factories, warehouses, and outdated commercial facilities into winter sports venues and reuse venues for the Beijing Winter Olympics in a post-Olympics era. The venues are also encouraged to open to the public for free or at a low price.

Wang noted that the ice and snow industry is capital-intensive. It takes a very long time to recover invested capital and the operating costs are very high, he said. “Measures to further broaden financing channels will help alleviate any financial crunch faced by enterprises in the sector,” he said. Currently, the number of enterprises in this sector in China has increased from approximately 300 in 2015 to around 900 in 2023, with sales revenue rising from less than RMB 5 billion in 2015 to approximately RMB 22 billion in 2023.

During the post-Olympics period, China has been encouraging various regions to apply for and host high-level winter sports competitions according to local conditions.

Efforts have been made to promote integrated development of sports events with related industries, such as culture, tourism, and commerce, optimize the environment for the development of winter sports events, and improve the economic efficiency of winter sports events. Additionally, China will further improve the youth winter sports event system, support public winter sports activities, and ensure the comprehensive utilization of winter sports venues during the post-Olympic era.

Zhang Lijuan and Wang Junshi are reporters with China Report.