How a Drop in Chinese Tourism Will Hurt Luxury Retail in the U.S.
Photo Credit: The Hermès Spring-Summer 2019 Ready-to-Wear collection fashion show in Paris. The trade war between China and the United States threatens the luxury goods industry. AFP via Getty Images / Bertrand Guay
Skift Take
An expected drop in Chinese tourism to the United States won’t just impact hotels and restaurants. In fact retail may take the biggest hit.
Within the realm of tourism, the trade war between the United States and China is likely to have a significant impact on luxury retail. And yes, luxury retail is a major player in the tourism industry.
While Chinese buy roughly one-third of the world's luxury goods, 73 percent of this consumption occurs outside the country, according to estimates from Bain & Company, a global management consulting firm. Statistics released by the Chinese Tourism Academy and Ctrip show Chinese travelers spent more than $115 billion during their overseas trips in 2017.
The Outbound Chinese Tourism and Consumption Trends Survey, jointly issued by Nielsen and Alipay, contrasted overseas spending patterns of the Chinese with travelers from the United States, the United Kingdom, France, Japan, and South Korea. Nielsen found that the Chinese not only spend more on shopping per person when abroad ($782 versus $486), they prioritize shopping in their budgets.
Outbound Chinese
