The shopping activities of mainland Chinese tourists visiting the Philippines during the Chinese New Year (CNY) rose 50 percent higher this year than in 2023, the cross-border payment platform Alipay+ said on Wednesday.
This was reported by the Shanghai-headquartered parent firm Ant Financial who noted that the Philippines was not even the top destination for the Chinese New Year travelers.
Compared to last year, spending by Chinese tourists in the Philippines via their home e-wallet, Alipay, increased by 50 percent this year, with shopping as the most popular category. Other than those from the Chinese mainland, tourists from South Korea, Hong Kong, and Malaysia are the top three biggest spenders in the Philippines, the e-payments platform said.
According to Alipay+, shopping in Manila and Cebu proved the most popular activity among Chinese tourists during the period in two of the country’s most popular destinations. It did not provide actual numbers.
The Ant Group said the rebound of cross-border consumer spending during the first back-to-normal Chinese New Year travel season after the COVID-19 pandemic has proven robust and claimed the recovery made possible by Alipay+.
The Alipay+ mobile payment technology allows travelers to pay for goods, food and beverage, recreation, and entertainment at over 8 million merchants in over 70 countries and regions from their home app and without having to change money or carry cash.
Users also enjoy in-app instant tax refunds, as well as transparent and competitive exchange rates.
In the Philippines, Alipay+ is expanding its merchant partners in Manila and Cebu which are its most popular destinations in the country.
In the CNY holiday week between February 9th and 12th, the number of transactions made by Alipay users overseas surpassed that of 2019 by 7 percent, while consumer spending recovered to 82 percent of the 2019 level, or 2.4 times that of 2023, the e-payments platform said.
Closer socio-economic connections between Hong Kong SAR, Macao SAR, and the Chinese Mainland, the new visa-free policies from major Southeast Asia destinations, and recovering international flight capacities were key enablers of the cross-border travel boom.
Hong Kong SAR, Japan, Macao SAR, Thailand, Malaysia, Singapore, South Korea, France, Australia, and Canada were the top destinations for Chinese travelers by their Alipay spending.
Thailand, Malaysia, and Singapore combined reported a 7.5 percent increase over 2019, and a 580 percent leap over 2023, with Thailand leading in total volume and Malaysia showing the largest increase.
Besides a larger physical parameter, the Chinese globetrotter is also expanding its interest from traditional activities like shopping and tourism spot shopping to more immersive and unique local experiences. Globally in the CNY week, Chinese tourists spent 70 percent more on food and beverage than in 2019, venturing from downtown hotspots to out-of-the-way local treasures.
In-town transportation volume also grew, fast thanks to the passion for “travel local.”
Alipay users in multiple destinations may choose from rail, taxi, rideshare, car rental, bus, subway, and even scooter-share when abroad, all from the familiar app on their own phone.
The cost per ride on any vehicle for Alipay travelers dropped by 60 percent compared to 2019. A lighter carbon footprint also means more local SMEs on the public transport network gain a share of international tourist revenue.
The Chinese New Year is widely celebrated across Asian communities. With new partnerships in 2023 and increased travel, total cross-border spending on the region’s leading e-wallets powered by Alipay+ increased by 252 percent year-on-year.
Daily average transactions increased by 304 percent. Japan, South Korea, Macao SAR, Thailand, and Singapore were the top 5 most popular destinations for Alipay+ consumers besides the Chinese mainland, where the Philippines ranked as the 8th most popular destination globally.
“With its use spreading across age and income groups, increasingly mobile payment is becoming an important promoter of local and cross-border commerce in Asia and beyond, ” said Douglas Feagin, senior vice president of Ant Group and Head of Alipay+. “We expect to grow our partnerships with payment industry leaders, national tourist agencies, and merchants in 2024 to generate more growth. “
Enabled via Alipay+, Alipay (Chinese mainland) has been accepted by local merchants in the Philippines since 2017, while more e-wallets launched locally last year, such as AlipayHK (Hong Kong SAR), Kakao Pay (South Korea), and Touch ‘n Go eWallet (Malaysia). Overall, these e-wallets provide added convenience to tourists, while bringing more growth opportunities to local merchants.
The addition of these new e-wallets ahead of the peak travel season, with a predicted 8.21 million inbound tourists for the Philippines this year, provides a convenient payment experience for tourists while bringing more growth opportunities to local merchants, the e-payments platform said.
