• Eva Zhang, UK CEO at Alipay


• 09.06.2023 03:30 am
#payments

With many East Asian countries including China making travel restrictions a thing of the past in 2023, global tourism is expected to spike, and Europe is expecting an influx of visitors. 

Chinese travellers have historically been strong spenders when in  Europe, as well as across the rest of the world. European retailers have so far benefitted from this spending, however many still lack the critical tools to properly cater for it – a familiar payment system.  

Blast from the past 

In 2019, according to data from the UN World Tourism Organisation (UNWTO) 155 million Chinese tourists travelled abroad, spending a total of $255 billion, far more than the next biggest spenders. Overall international travel had been trending upwards to that point, and expenditure had also risen each year from 2014 to 2018, only slightly dropping in the year before the pandemic.   

However, during the pandemic, the UNWTO reported that Chinese outbound travel fell to just 20.3 million trips in 2020, and none at all in 2021. However, leaving COVID-19 behind, Alipay data shows that Chinese tourists’ average spending in Europe when using the platform doubled in Q1 2023, compared with the same period in 2019 – demonstrating that Chinese tourism is coming back with strong momentum. 

The size of China’s population plays a role here, however, the will of its people to travel is the larger driver. 43% of people in China aim to spend their next holiday abroad, according to a McKinsey study from January 2021 – a sentiment that is likely to have grown since. What’s more, a similar ING study last November showed that 42% were eager to travel in the near future.

Although it’s common for tourists to initially want to stay close to home, France was one of the top five destinations, and signs for the rest of Europe are strong too, with tourism already nearing pre-COVID-19 levels. 

Harnessing an opportunity

Change and unfamiliarity are inevitable when travelling abroad, particularly over long distances, and this is one of the big appeals of exploring different parts of the world. However, we all wish could keep the way we pay as familiar as possible. From the Chinese and broader East Asian perspective, the different payments landscape in Europe means they are unable to use the digital payments solutions, such as e-wallets, that many use every day. This is a big consideration for digital-native Asian tourists, and many will prefer to travel to destinations where they know they can pay seamlessly. 

In Europe, Asian e-wallets are not broadly accepted, leaving a huge opportunity for merchants to attract Asian customers by differentiating themselves from competitors. To achieve this, they will have to partner with the right payments provider that will enable them to offer payment methods tailored to the Chinese consumer, unlocking increased spending and footfall. In addition to this, the ability to offer familiar and trusted names will further propel businesses into favour with the new wave of visitors from around Asia. 

Considering this, retailers can get ahead even further by providing a service that is accessible both online at home as well as in-store overseas, to be prominent in consumers’ minds before travelling and after they’ve returned. The built-in marketing options which are part this kind of service mean that retailers can directly connect with customers to give them a slick online shopping journey in addition to in-person retail, and ensure that the potential for sales lasts a lot longer than in traditional sales funnels. Asian shoppers, for example, are more likely to engage with things like discount codes and personalised ads. 

All in all, merchants need to think outside of what is ‘traditional’ and consider what will entice consumers, granting them access to a wider and more international customer base. With Asian travellers keen to return to Europe, getting ahead of the game and ensuring your business is able to facilitate a smooth payments journey will pay off.