Retail tourism accounted for 6% of Travel and Tourism GDP in 2019

The World Travel and Tourism Council (WTTC) has recently launched “Global Retail Tourism: Trends and Insights”, a report that will change the way we think about shopping tourism.

The joint research between the WTTC and the Hospitality and Tourism Research Center of the Hong Kong Polytechnic University, in collaboration with The Bicester Collection, was published during an event that took place at La Roca Village, part of The Bicester Collection, in Barcelona, ​​Spain. coinciding with the 25th anniversary of the Village.

In 2019, retail tourism accounted for a substantial US$178 billion, representing 6% of the value of the travel and tourism sector and exceeding 15% in some destinations.

Despite this important boost to economies around the world, it has historically been under-researched, leading to a lack of data critical for strategic forecasting.

WTTC's latest report addresses this gap, offering insights into travelers' shopping habits, including visits to out-of-town retail destinations, and highlighting emerging trends such as sustainable retail.

This report sheds light on the immense untapped potential of retail tourism for both destinations and businesses.

According to the report, this segment began to recover from the COVID-19 pandemic in most markets in 2021, with America and Europe leading the way. Demonstrating remarkable growth, it outperformed broader economies in almost all markets before the pandemic, demonstrating its resilience and future growth prospects.

Retail tourism is playing a key role in the recovery of the travel and tourism sector, with inbound tourism revenues increasing by 82% in 2022. Shopping is no longer just a leisure activity; shapes travel decisions, enhances destination attractiveness, increases foreign exchange earnings and supports local brands and products.

The report highlights emerging themes, including “retail entertainment” (the fusion of retail and entertainment) to incentivize purchases and improve customer experience.

Julia Simpson, president and CEO of the WTTC, said: “Retail tourism is no longer just about buying souvenirs; is a driving force behind the recovery of the travel and tourism sector, and contributes significantly to revenues, job creation and overall economic growth.

“This report highlights the untapped potential of retail tourism and the need for stakeholders across the travel and tourism sector to adapt to changing traveler preferences. Travelers are looking for authentic brands that capture the culture and uniqueness of their destination, as well as luxury brands in a luxurious setting.

Desirée Bollier, President of The Bicester Collection and Global Chief Commercial Officer, said: “By fusing economic prosperity with enriching experiences, retail tourism elevates communities while celebrating cultural heritage.

“A collaborative approach between retail, travel and tourism elevates the traveler journey, balancing sector growth with conscious actions. Through destination integrity, technology adoption, public-private cooperation, empathy with the traveler's point of view and advocacy for thoughtful policies, we chart the path for the dynamic future of retail tourism." Professor Haiyan Song , director of the Hospitality and Tourism Research Center

from the School of Hospitality and Tourism Management at The Hong Kong Polytechnic University, said: "Sustainability in travel and tourism will continue to gain importance after the COVID-19 pandemic and it is imperative that retailers understand how much shoppers are willing to pay. and travelers". for sustainable products.”

The report provides valuable insights into the spending patterns and preferences of today's shopping tourists. The fusion of experiential tourism with shopping stands out, satisfying the demands of retail tourists.

While high street shops remain popular shopping destinations, out-of-town retail is also gaining popularity, with around a third of respondents reporting visits to such destinations. Additionally, online shopping complements, rather than replaces, traditional retail experiences.

The report also offers valuable recommendations for retail tourism stakeholders, providing guidance on how to successfully navigate these emerging trends.

While the future of retail tourism looks positive, it is essential to recognize and address certain obstacles, including challenges related to labor laws and the impact of duty-free shopping policies.

Overcoming these barriers will be crucial to the continued growth and sustainability of this dynamic sector.

Source: WTTC