When China introduced the idea of 'holiday economy' back in 1999 - making National Day and Labor Day weeklong holidays - the masses used their time off work to travel the country and abroad.

That holiday wanderlust is wearing off as people become accustomed to three weeklong vacations a year - including the traditional Spring Festival, Chinese lunar New Year.

As a result, travel agencies are slashing prices for the upcoming National Day holiday to boost sluggish sales.

"Locals no longer get very excited about having a long holiday. And when they do make travel plans, many people intentionally try to avoid the peak season," said Chen Jisheng with the Shanghai Spring International Travel Service.

Prices for package tours to domestic scenic spots are down 15 percent on average from last year with only one third of tour vacancies booked so far, five major local travel agencies told Shanghai Daily yesterday.

On average, only about 70 percent of tours to traditionally hot destinations, such as Hainan Island, Yunnan Province and Beijing, have been reserved unlike last year when very few vacancies were available in mid September.

Shanghai Spring International Travel Service has cut the cost of a five-day package tour to Hainan, departing Shanghai on October 1, to 2,890 yuan (US$348) - 500 yuan cheaper than last year.

The company says it has only filled 80 percent of its packages so far.

"Now, our business doesn't fluctuate too much seasonally. Reservations are more evenly distributed throughout the year," said Chen.

"We have three weeklong holidays now, why should we hurry?" said Chen Song, a software engineer who travelled during the previous holidays.

China initiated its "holiday economy" scheme as an antidote to deflation and sputtering consumption in 1999, turning the National Day holiday into a weeklong vacation for workers and students.

The plan worked as many people spent their time off shopping and traveling, providing a quick boost to the economy.

In 2000 the government expanded the idea, extending the traditional one-day holiday for the May 1 International Labor Day to a week.

While domestic trips should cost less this year than last, the price of an overseas vacation hasn't changed much, except for trips to Australia.

Shanghai Youth Travel Service is offering a 12-day tour package to Australia for 16,800 yuan, 3,000 yuan cheaper than last year.

While reservations for overseas tours are down, agencies in the city say it is too early to tell how many travelers will head abroad during the holiday.

"In the past, locals were required to book at least three weeks in advance as most did not have passports," said Li Wenjun with the Shanghai China Travel Service.

But due to new regulations that make it significantly easier to get a passport, most don't apply for one through a travel agency anymore, said Li.

( eastday.com September 19, 2002)