Chinese travellers are relying more on mobile apps like Alipay and less on cash. BANGKOK POST
CHINESE tourists last year paid for 32 per cent of transactions using mobile payment, overtaking cash for the first time, according to a survey by Nielsen and Alipay.
Polling more than 2,800 Chinese travellers and over 1,200 overseas merchants, the survey sheds light on the latest trends in outbound tourism and the consumption habits of Chinese travellers. The report concludes that the average budget for Chinese tourists travelling abroad has increased, with more tourists adopting mobile payment.
Mobile payment methods also boosted the operations of overseas merchants. Some 58 per cent of surveyed merchants said that after adopting the Alipay system, their foot traffic increased, while 56 per cent claimed improved sales.
As more Chinese tourists travel abroad, their spending habits and choices become more influential.
Outbound Chinese tourists visited more destinations last year, with respondents visiting an average of 2.8 countries or regions, up from 2.1 in 2017. Both average actual spending and the travel budget for outbound Chinese tourists increased year-on-year – the former rising by six per cent to $6,026 and the latter by 15 per cent to $6,706.
Shopping, accommodation and dining remained the top three spending categories for Chinese tourists. Discounts, quality and pricing are the three key factors weighing on Chinese tourists’ shopping decisions.
Chinese tourists from second-tier cities have become a new driving force in the outbound tourism market. Of note, 38 per cent of surveyed tourists from second-tier cities travelled to Europe last year, surpassing the proportion of respondents from first-tier cities for the first time. In addition, 22 per cent of those from second-tier cities travelled to North America, on a par with the proportion of Chinese tourists from first-tier cities.
Chinese tourists have become more adventurous in their choice of travel destinations. Last year, 10 per cent visited Central Asia, Western Asia and Africa, a noticeable increase from the previous year. Chinese millennials are leading the trend in selecting less popular destinations. Some 18 per cent of respondents born during 1990-99 have travelled to Central and Western Asia and Africa, while five per cent have travelled to Nordic countries.
Chinese millennials are no longer the single most dominant group of mobile payment users abroad – older generations are catching up. Some 68 per cent of Chinese tourists born in 1970-79 used mobile payment methods while travelling abroad last year, almost equalling the percentage of millennials.
Last year, over 60 per cent of Chinese tourists made payments with their mobile phones in locations ranging from Singapore, Malaysia and Thailand to Europe, the US and Australia. Some 90 per cent of surveyed merchants in Singapore, Malaysia and Thailand reported encountering Chinese customers asking whether mobile payments were accepted. BANGKOK POST
