Will Chinese tourists be back to Europe soon?

"China will be the engine of the international tourism industry" - said Glenn Fogel, Booking Holding’s Board of Directors Chairman. Chinese tourists will increase their importance in the European tourism market.

In 2020, the estimated financial losses resulting from the Covid-19 pandemic were $1.3 billion for the international tourism market. The absence of Chinese travelers certainly played a big role. Chinese tourists have been the world's largest travelers and spenders for a few years, in 2019, they spent about $254.6 billion.

The Covid-19 has cost a fortune to the tourism industry worldwide in an unprecedented year. After a long lockdown, many Chinese are ready to take flights again, starting with the Asia-Pacific region in 2021 and venturing into Europe in 2022. The Chinese have never lost interest in travel, as the boom in Chinese domestic tourism in the last months has indicated when the international travel ban had been announced.

Although the pandemic is far from over, some 500 million doses of vaccine have been administered worldwide, creating a climate of cautious optimism. A quarantine-free world seems within reach.

The recovery pace of Chinese tourism abroad

The recovery pace of foreign Chinese tourism will depend heavily on the rapid deployment of vaccines. In China, nearly 65 million citizens were vaccinated in March. According to Chinese government estimates, 40% of the population will be vaccinated by the end of July. This means that 560 million Chinese will be fully immune this summer. While the United States and the United Kingdom are on track to achieve collective immunity by the end of the first half of 2021, we expect the EU to achieve collective immunity in the second half of the year. This will accelerate the return of Chinese tourists abroad.

Forecasts by Chinese multinational travel company CTRIP predict that up to 60 million tourists will travel outside of China this year. This means that as soon as travel restrictions are lifted, Chinese tourists will return to Europe.

What kind of Chinese tourists European merchants should expect?

A study conducted by Vogue Business in China indicates that luxury consumers, whose spending on luxury goods has exceeded 2400 € in the last months, are 40% more likely to travel abroad in the next two months than other consumers. Some 14% of "non-luxury" consumers say they are ready to travel abroad in Q2 of 2021, while this figure rises to 17% for luxury consumers.

Chinese tourists will focus not only on luxury but also on independence, and a healthy lifestyle.

Independent tourists, or travelers who plan their own trips and prefer to travel alone or in small groups, will become a very important segment of Chinese tourism in Europe. After the coronavirus, it is expected that up to 85% of Chinese tourists will make independent trips and will not travel in large groups.

Another change in the behavior of Chinese tourists concerns luxury consumption. In October 2020, during China's Golden Week, booking luxury hotels increased by 600% compared to 2019 even during the pandemic. It is assumed that Chinese tourists in Europe will be looking for high-quality hotels and services in 2021.

However, it is not only luxury that interests Chinese consumers. The travel habits of Chinese tourists have gained new momentum, many Chinese are looking for a healthy lifestyle, spending more time in nature, promoting well-being, and choosing independent trips. Eco-tourism and all kinds of outdoor sports activities, as predicted, would be the main interest of travelers from China.

Is shopping still a priority for Chinese tourists?

Yes. The same Survey by Vogue Business holds promise for the fashion industry. It indicates that shopping (especially luxury goods and services) is likely to remain a high-priority activity for Chinese tourists. One-third of Chinese consumers who have purchased luxury items in the past six months are waiting for the return of international travel to make the most of their luxury shopping.

Taking advantage of digital technology to attract Chinese tourists

In Mandarin, the concept of hospitality suggests being friendly with foreigners and treating guests well, which is what the Chinese expect when visiting new countries. But this is not enough to attract the world's highest spenders, an understanding of Chinese culture and genuine anticipation of the Chinese tourists’ needs are needed. Chinese consumers are super connected, this has been amplified in the coronavirus era. Contactless protocols and increased digitalization will all help attract and reassure the new wave of Chinese tourists to Europe.

Chinese consumers make extensive use of digital technology, and WeChat is one of the most widely used platforms in China. Each month, approximately 1.2 billion active users use it for different types of services, from online payments to messaging and more. A Chinese customer, not familiar with cash or credit card payment, expects to pay with Alipay or WeChat Pay in a foreign country.

In addition, in the digital world, WeChat is the ideal place to promote your stores, products and services, or even a tourist destination. In Italy, the city of Milan has launched a specific promotional campaign on WeChat, called "Yes Milano". This advertising campaign allowed Chinese tourists to join the official account of the city of Milan, explains Nicola Canzian, managing partner of Digital Retex. In doing so, tourists receive, once a week, highly targeted and engaging digital content that stimulates the desire to visit the city of Milan. The first signs of a recovery in the tourism market are expected to appear gradually next summer, before a full recovery in 2023.

Speaking of promotion, we cannot rule out Alipay, the giant with more than a billion users. Alipay offers the possibility for merchants to geolocate their shops, the application displays to its users nearby merchants who accept their payment methods. Alipay also helps merchants promote their business through promotional coupons or banners.

By combining these two payment giants with their powerful marketing tools, brands can increase their awareness in the Chinese market, engage with their Chinese customers, and increase acquisitions by converting Alipay users into customers. It's powerful!

These payment systems are not just transaction channels; they are powerful marketing tools that every brand targeting the Asian market needs to be aware of.

Silkpay, a partner of Alipay and WeChat Pay, provides an omnichannel and secure payment solution to help physical stores and e-commerce companies in Europe and the United States accept the two Chinese mobile payment giants Alipay and WeChat Pay.

Our offer also goes beyond payment solutions, our marketing services offered to merchants allow them to reach millions of Chinese consumers via cross-border commerce. Our specialized team takes care of their digital strategy and social networks in the Chinese market. For more information, please contact us by phone at +33 7 50 27 78 12, by email, or through the contact form on our website. Our teams are available to answer your questions.