Chinese Tourists Are Spending More Overseas

Chinese tourists spent a total of $203 billion (¥1,390 billion) in overseas markets in the 12 months ended August 2019, according to Coresight Research’s recently released fifth annual survey of Chinese overseas tourists’ travel, spending and behavior preferences.

Among the survey’s other key findings:

• Growth in the total number of trips taken by Chinese tourists has been driven by more people traveling, with our survey finding the average number of trips per traveler declined in 2019.

• Traveling independently—i.e., travelers making their own arrangements and not using a tour guide—became the most popular option this year, primarily driven by travelers from tier-one cities. This shift from group travel has negatively impacted outlet stores: Traditionally driven by group tourists, outlet stores captured 8.1 percent of total Chinese tourist retail spending, down from 9.3 percent a year ago.

• Coresight found that the average total spend per trip for Chinese tourists increased 1.1 percent year over year on a comparable basis. Total retail spend increased 11 percent to an estimated $102 billion (¥701 billion), but average retail spend per trip declined 2.3 percent.

• Beauty was again the most-bought retail category in this year’s survey. And, while last year the beauty category was in joint first position with clothing, footwear or accessories, our 2019 survey found beauty pulled ahead.

• Coresight said it continues to observe a decline in the proportion of travelers going overseas with a spouse/partner or with young children, and a jump in the proportion traveling with friends.

• Consumers in China have become accustomed to using mobile apps for in-store purchases—and they expect the same seamless experience overseas. Retailers and service providers should look into securing the capability to accept digital payments using Chinese settlement mechanisms such as Alipay.

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