Skift Take
Trump's ban on the Chinese superapp WeChat may turn out to be a mere annoyance for many Chinese travelers. But it could cause real harm to some U.S. travel organizations.
It's been hip for years for many travel marketers to tout their use of WeChat, the omnipresent Chinese digital service app, as a way to reach Chinese tourists. But that quickly became imperiled when President Donald Trump issued an executive order that gave U.S. companies 45 days to stop engaging with WeChat allegedly over espionage and data security issues.
See the text of the August 6 executive order here. With the Trump administration sparring with the Chinese government over coronavirus and trade issues, he also banned in the U.S. the popular video-sharing app, TikTok, and opened up a path for a U.S. company to acquire TikTok's operations stateside.
Many U.S. companies in the travel sector have courted Chinese visitors since 2017 by using WeChat, a superapp owned by tech giant Tencent. Several of them may now need to change their tactics.
"WeChat is more than a messaging app," said Amit Anand, co-founder and managing partner at Singapore-based Jungle Ventures. "It's a lifeline for over a billion Chinese residents and outbound travelers."
Chinese citizens use WeChat to make payments in their cashless society, and they use it for person-to-person communication much more than email.
Federal authorities worry that the Chinese government might collect data via WeChat for espionage. Some say it also has fairness in mind in its WeChat criticisms and shots at other apps and Chinese businesses. China has long banned WhatsApp, Facebook, Twitter, and Google.
But the order may have implications for the travel sector. WeChat is one of the main digital marketing channels for reaching Chinese outbound travelers. For context, Skift Research subscribers can read the report, WeChat Marketing Strategies for Global Travel Brands.
"Taking away the fundamental mode of communication will be disastrous to the U.S. and potentially compel Chinese tourists to travel to other countries," Anand said.
Tencent said it is "reviewing the executive order." In its second quarter earnings call on August 12, the company noted its revenue from the U.S. is less than 2 percent.
[caption id="attachment_402022" align="alignright" width="400"] Mandarin Oriental is a Hong Kong-based hotel chain that has ramped up its use of WeChat since May 2020. Source: Mandarin Oriental[/caption]
It remains unclear how authorities and companies will interpret the executive order. One unknown: Will U.S.-based hotel chai
