Chinese tourists are spending less on their trips abroad. The biggest spenders among international tourists bought 24% less in European stores in March after rising 5% in February and 11% in January compared to the same months last year, according to Global Blue.
According to a report by Quartz, terrorist attacks in Brussels and Paris are scaring the Chinese. In March they chose to go to other destinations and spend their Yuans elsewhere. In a survey among 5,000 Chinese travelers, 56% cited safety as a factor in picking a travel destination.
The drop in spendings are hurting international luxury brands; Prada and LVMH have already admitted that the plummeting of spending by the Chinese have impacted their results. Hermès said the attacks could continue to cloud sales in the year ahead.
Chinese shoppers buy more luxury goods than anyone else in the world. They account for 31% of global luxury purchases. They also do about 80% of their buying outside mainland China, where luxury goods cost more because of currency exchange rates and import tariffs. Deutsche Bank estimated that some brands get 35% or more of their revenue from Chinese shoppers, both domestically and while traveling.
Image by Mparweo, via Wikimedia Commons
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