The World Travel and Tourism Council (WTTC) on Thursday released a report set to change the way we think about shopping tourism.
“Retail tourism is no longer just about buying souvenirs,” WTTC President & CEO Julia Simpson when announcing the report at an event in Barcelona, Spain.
“It’s a driving force behind the recovery of the Travel & Tourism sector, contributing significantly to revenue, job creation, and overall economic growth.”
Retail tourism: 6% of Travel & Tourism’s GDP in 2019
According to the report, in 2019, retail tourism represented a substantial US$178 billion, comprising 6 percent of the Travel & Tourism sector’s value, and exceeding 15 percent in some destinations.
Despite this significant boost to economies across the globe, it has historically been under-researched, leading to a lack of critical data for strategic foresight.
The latest WTTC report addresses this gap, offering insights into travellers’ shopping habits, including visits to out-of-town retail destinations, and highlights emerging trends such as sustainable retail.
This report sheds light on the immense untapped potential of retail tourism for both destinations and businesses.
Travellers are looking for authentic brands
“This report underscores the untapped potential of retail tourism and the need for stakeholders across the Travel & Tourism sector to adapt to changing traveller preferences. Travellers are looking for authentic brands that capture the culture and uniqueness of their destination, as well as luxury brands in a luxurious setting,” Simpson said.
According to the report, this segment began to recover from the COVID-19 pandemic in most markets in 2021, with the Americas and Europe leading the way. Demonstrating remarkable growth, it outpaced overall economies in almost all markets pre-pandemic, showcasing its resilience and future growth prospects.
Retail tourism is playing a pivotal role in the recovery of the Travel & Tourism sector, which saw inbound tourism revenues surging by 82 percent in 2022. Shopping is no longer just a leisure activity; it shapes travel decisions, enhances destination appeal, boosts foreign exchange earnings, and supports local brands and products.
The report highlights emerging themes, including ‘retailtainment’ – the fusion of retail and entertainment – to incentivise shopping and enhance the customer’s experience.
Moreover, it provides valuable insights into the spending patterns and preferences of today’s shopping tourists. It underscores the merging of experiential tourism with shopping, meeting the demands of retail tourists.
While high-street shops remain popular shopping destinations, out-of-town retail is also growing in popularity, with around one-third of survey respondents reporting visits to such destinations. Additionally, online shopping complements rather than substitutes traditional retail experiences.
The report also offers valuable recommendations for stakeholders in retail tourism, providing guidance on how to navigate these emerging trends successfully.
While the future of retail tourism looks positive, it’s essential to acknowledge and address certain obstacles, including challenges related to labour laws and the impact of tax-free shopping policies.
Overcoming these barriers will be crucial for the continued growth and sustainability of this dynamic sector.
The “Global Retail Tourism: Trends and Insights” report is based on joint research between WTTC and the Hospitality & Tourism Research Centre of The Hong Kong Polytechnic University, in collaboration with The Bicester Collection.
WTTC released the report during an event at La Roca Village, part of The Bicester Collection, in Barcelona, Spain, to coincide with the Village’s 25th anniversary.