Meaning:

“原地”means the place where you are currently staying, while “宅”as a noun means a house, and indoors and introverted when used as an adjective. “度假” means vacation. So “原地度假”, “宅度假” literally means staycation or staycay, a vacation spent at home involving day trips to local attractions.

Example:

A: 你计划好今年怎么过年了吗？

Nǐ jìhuà hǎo jīnnián zěnme guònián le ma?

What’s your plan for the lunar New Year holiday? Have you decided yet?

B: 还没有呢。今年我收到通知说要避免不必要的回乡探亲。

Hái méiyǒu ne. Jīnnián wǒ shōudào tōngzhī shuōyào bìmiǎn bùbìyào de huíxiāng tànqīn。

Not yet. I was told that people are not encouraged to make “unnecessary” trips to their hometowns for the holiday this year.

A: 干脆来个宅度假吧。深圳也有很多游玩的选择。

Gāncuì láige zháidùjià ba. Shēnzhèn yěyǒu hěnduō yóuwán de xuǎnzé.

Why don’t you take a staycation? There are plenty of places in Shenzhen for you to see.