Published on : Thursday, November 2, 2017
More than 135 million Chinese took overseas holidays in 2016 accounting for 11% of total international tourist traffic according to the report and of every US$5 spent by international tourists, US$1 is by Chinese travellers.
In New Zealand alone, Chinese tourists spent just over NZ$1.5 billion in the year to June 2017.
In recent years, the Asia Pacific region report notes a main shift away from spending on luxury and other consumer goods towards culture and experience-based retail with significant implications for the retail sector.
It cites a review from August this year in which just one-third of respondents selected shopping as their main motivation for travel, down from 68% in 2016 and another recent study which found spending by Chinese tourists on shopping has fallen by 40% between 2013 and 2017 while spending on food and entertainment has surged. A more grown-up domestic retail market in China is a major reason for the trend according to the report with 54 percent of worldwide retail brands having at least one store in tier 1 cities such as Shanghai as of the end of 2016.
The e-commerce and ease at which Chinese consumers can shop for foreign-made goods is also seen to be having an impact while social media has played a part too by revealing tourists to a wider range of tourism experiences via posts and online reviews.
As a result, the Chinese tourists are mounting higher expectations and more discriminating tastes when travelling aboard.
Tim Male, CBRE New Zealand’s National Director, Advisory & Transaction Services Retail says that with China is continuing to grow as one of our most important sources of inbound tourism and it is critical retail occupiers and landlords take note of the change in spending patterns.
Increased interest by Chinese tourists in local cuisine and dishes is another trend with data showing Chinese visitors to Australia spending a quarter of their budget on dining compared to an average of just 10% elsewhere in Asia Pacific.
In New Zealand, the Chinese tourists’ spending on food and beverage has increased by 35% in the past year despite the slowdown in their overall spending.