China lives wrapped in a paradox from which it cannot escape. It is the most populous country in the world, with 1,200 million inhabitants, and the largest source market for tourists. However, these travelers mostly choose to spend their vacations in China or in a nearby country such as Japan, Korea, Singapore, Malaysia or Indonesia. “Before 2019 it was the custom; then there have been the severe restrictions imposed by the Government to prevent the spread of the coronavirus ”, he remarks Ada Xu, Regional Director for Europe, the Middle East and Africa at Fliggy, Alibaba’s travel platform. A trend that may break in the coming weeks, as the industry discounts the Chinese Executive lifting travel restrictions. Xu warns that the recovery will not be immediate because first it will be necessary to overcome the bureaucratic procedures necessary to renew passports and visas, but he confirms that the demand exists. “There are 372 million Chinese tourists ready to travel as soon as the borders open,” says Xu, who attended a conference last Friday at the Forward_Mad tourism congress, held in Madrid.
Since 2016 in Paris, he has been leading Fliggy’s strategy in Europe as a link between the market of origin (China) and the market of destination (Europe). What conclusions do you draw from these six hectic years with a pandemic in between?
My first goal is for Fliggy, as a brand in the Alibaba ecosystem, to be recognized in Europe and to be attractive to all operators in the industry for what we offer. Fliggy is not an online travel agency, but works as a travel platform. We reach agreements with partners, such as the Louvre Museum, the Prado Museum or Disneyland, and we offer exclusive experiences for travelers. A good example are the streaming that we did during confinement to show some of his great works.
Until the pandemic, Chinese tourism to other countries was only an emerging phenomenon and trips were usually made in groups and with a tour operator to reinforce security in the face of not knowing the language. What kind of customers does Fliggy target?
The main objective of Fliggy is to attract individual travelers who rule out group trips. A very important part are Chinese citizens who studied or spent time in Europe, who learned the language, and who are looking for unique experiences of the country they visit. In Spain they seek sun and sand, but they also want to discover luxury, culture, heritage or innovation. They like to test technology all the time, so technology is vital in China’s travel industry. They are people closely linked to mobiles, who like to be permanently connected and buy everything by mobile.
“France is the gateway to Europe, and Italy and Spain are mandatory stops”
Another advantage is its high purchasing power…
They are highly educated travelers who speak the language of the country they are visiting and who prioritize luxury shopping as an essential part of the trip. They have a high budget to buy in reference stores, food or wines because they want to join that luxury atmosphere.
Spain is one of the most visited countries in the world along with France. However, Paris has a great advantage over Madrid as the first European destination in shopping and luxury tourism. Has this perception changed after Covid?
Spain is very well positioned within Europe in the ranking. Before the Covid crisis broke out, we began to see some figures in Spain [alcanzó en 2019 el máximo histórico con 700.000 viajeros] and Italy very interesting, confirming that they had become very attractive destinations for Chinese tourists. Traditionally, Chinese travel included various cities in Europe. The gateway was France and the obligatory stops were Spain and Italy. Spain has everything a Chinese tourist may need: the Chinese traveler is looking for an experience that mixes luxury, culture and technology. But the Spanish Administrations and companies have to work harder and better to promote the destination in China. In France and the United Kingdom they are working very intensively and in the Middle East as well.
“I am optimistic about the reopening of borders, but millions of passports and visas will have to be renewed”
Hotels, restaurants or luxury shops from all over Europe are waiting for Chinese tourism to travel again. It was the first affected by the coronavirus crisis and the last to leave, since it is still not possible to travel abroad. Are you optimistic about an imminent reopening?
Yes, I am optimistic. But it will not be an immediate recovery. Chinese policy is very strict. After three years of confinement, millions of passports and visas will have to be renewed. Without these two elements you will not be able to travel. Those two elements are very controlling. But if the restrictions are finally lifted in the coming weeks, there will be an explosion of travel. In Fliggy alone we have 372 million users eager to travel in the coming months.
You have mentioned technology as one of the elements of attraction for Chinese tourism. Give some example.
In China we are revolutionizing the way of visiting museums. We have taken a step beyond audio guides and are using augmented reality glasses. A sculpture that lost an arm can be recreated with technology to understand how it was before. A ruined temple can also be rebuilt. Our obsession is to provide added value to partners and consumers. It would be important to have this type of experience in Europe, which is already common in China.
