Published on : Tuesday, February 19, 2019
This tectonic shift in the outlook of Chinese tourists is bringing in winds of change in domestic tourism as well as global travel, and domestic consumption.
Besides, changing tourist preferences hold promise for certain emerging vocations, tech-enabled businesses and tradition, as well as value-based cultures across the world.
Outbound Chinese tourists still spend a lot of money on shopping, but the corresponding growth rate is dropping every year. For instance, in 2017, Chinese tourists spent 5 percent more than in 2016. And in 2018, they spent $120 billion, which was only 4 percent more than in 2017.
Luxury purchases by Chinese tourists used to top the world’s per-tourist spend list. But now, this has gone down as luxury products now are not only less expensive but easily available at home. Since 2009, leading luxury brands have been slashing prices in the China market, to synchronize them with tags worldwide.
Hunter Williams, Oliver Wyman partner, said: “Chinese tourists have leapfrogged shopping formats that are mainstream elsewhere and taken up mobile e-commerce, mobile payments and social shopping.”
Since July 1, 2018, China has lowered import tariffs on more than 1,440 items across product categories like clothing, shoes and cosmetics.
Tags: Chinese tourists