Overseas spending of Alipay users surpasses 2019 figures

The Year of the Dragon started strong as preliminary data from Alipay shows the number of outbound spending transactions by Alipay users during the 2024 Spring Festival was already 107% of the level in the same period in 2019.

Alipay operator Ant Group said in a statement that transactions of overseas Chinese tourists from Feb. 9 to Feb 12 were 7% higher than for the same holiday period in 2019.

Data shows there was a 45% increase in Hong Kong, signaling the return of the overseas Chinese tourist.

According to Alipay’s analysis of its Lunar New Year holiday cross-border travel data, the period has once again become the peak season for global travel consumption after four years, with a clear “two-way” warming trend.

Hong Kong, Macau, Japan, South Korea and other nearby destinations are the most sought after, while the popularity of Europe, the US, Australia, North America, the Middle East and other long-haul destinations are also gradually warming up. 

By spending amount, Hong Kong, Japan, Macau, Thailand, Malaysia, Singapore, Korea, France, Australia and Canada are the top 10 destinations favoured by Alipay users, as cited in the statement.

Data from multiple online travel platforms showed that on the first day of the eight-day holiday, outbound travel bookings already surpassed the 2019 figure with Southeast Asian countries, particularly those with visa-free policies for Chinese nationals, emerging as red-hot destinations.

From Feb. 10 to 13, bookings for hotels in Bangkok tripled year on year, while reservations for Singaporean hotels reported a stunning growth of 800%, according to the travel platform LY.com.

According to a market forecast by Ctrip, a leading travel platform in China, the eight-day holiday would mark the country’s first travel rush of the year, with a notable increase in international travel being one of the highlights.

“Destinations in Southeast Asia have continued to gain traction as many in China opted for the region for an escape from the winter season,” said Gao Tao, from Tuniu.

“The tourism industry has gone through a rough patch in the past three years due to the pandemic. But it is now poised for a growth spurt, particularly in outbound tourism.”

The holiday period is an important barometer for consumption, which has been lagging due to the country’s continued property crisis and macroeconomic headwinds.

However, the post-CNY data is showing a temporary relief as the world’s second largest economy is regaining its footing amid deflationary risks.

Total domestic trips for the eight-day long holiday that began Feb. 10 rose 34.3% to 474 million, while tourism receipts grew 47.3% to 632.6 billion yuan, according to data published Sunday by the Ministry of Culture and Tourism. That’s 19% more in terms of trips and 7.7% more in terms of tourism spending for the equivalent period in 2019.

“Supported by various favorable factors such as government policies, [services] supply and propaganda work, people in urban and rural areas have exhibited a rising willingness to travel, with many indicators such as the number of trips and travel spending hitting record high levels,” the ministry said in a statement.