The World Travel & Tourism Council (WTTC) has introduced “Global Retail Tourism: Trends and Insights,” a report poised to revolutionize our understanding of shopping tourism. This collaborative research effort between WTTC and the Hospitality & Tourism Research Centre of The Hong Kong Polytechnic University, in partnership with The Bicester Collection, was unveiled during an event held at La Roca Village, a part of The Bicester Collection, in Barcelona, Spain, marking the Village’s 25th anniversary.
In 2019, retail tourism accounted for a substantial $178 billion, constituting 6% of the Travel & Tourism sector’s total value and surpassing 15% in select destinations. Despite its substantial contribution to economies worldwide, it has historically remained an under-researched area, resulting in a dearth of crucial data for strategic planning.
The latest WTTC report addresses this knowledge gap by providing insights into travelers’ shopping behaviors, including visits to out-of-town retail destinations, and highlights emerging trends like sustainable retail. This report illuminates retail tourism’s vast untapped potential for destinations and businesses.
According to the report, this segment began rebounding from the COVID-19 pandemic in most markets in 2021, with the Americas and Europe leading the recovery. Exhibiting remarkable growth, it outpaced overall economies in nearly all pre-pandemic markets, demonstrating its resilience and promising future growth prospects.
Retail tourism plays a pivotal role in the recovery of the Travel & Tourism sector, with inbound tourism revenues surging by 82% in 2022. Shopping has evolved beyond a mere leisure activity; it shapes travel decisions, enhances destination appeal, bolsters foreign exchange earnings, and supports local brands and products.
The report spotlights emerging themes, including ‘retailtainment’ – the fusion of retail and entertainment – designed to incentivize shopping and enhance the customer experience.
Julia Simpson, WTTC President & CEO, remarked, “Retail tourism is no longer confined to souvenir shopping; it’s a driving force behind the Travel and tourism sector’s resurgence, making substantial contributions to revenue, job creation, and overall economic growth.
“This report underscores the untapped potential of retail tourism and underscores the need for stakeholders across the Travel and tourism sector to adapt to changing traveler preferences. Travelers seek authentic brands that capture the culture and uniqueness of their destination, as well as luxury brands in luxurious settings.”
Desirée Bollier, The Bicester Collection Chair and Global Chief Merchant added, “By merging economic prosperity with enriching experiences, retail tourism uplifts communities while celebrating cultural heritage. A collaborative approach between retail, travel, and tourism enhances the traveler’s journey, balancing sector growth with conscientious actions. Through destination integrity, technological adaptation, public-private cooperation, empathy for the traveler’s perspective, 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 at The Hong Kong Polytechnic University, stated, “Sustainability in Travel and tourism will continue to gain importance post-COVID-19, and it is crucial for retailers to understand how much shoppers and travelers are willing to invest in sustainable products.”
The report offers valuable insights into the spending patterns and preferences of contemporary shopping tourists. It underscores the fusion of experiential tourism with shopping to meet the demands of retail tourists. While traditional high-street shops remain popular shopping destinations, out-of-town retail is also on the rise, with approximately one-third of survey respondents reporting visits to such locations. Additionally, online shopping complements rather than replaces traditional retail experiences.
The report also provides valuable recommendations for stakeholders in retail tourism, offering guidance on how to navigate these emerging trends successfully. However, it is essential to acknowledge and address certain obstacles, including challenges related to labor laws and the impact of tax-free shopping policies, to ensure the continued growth and sustainability of this dynamic sector.
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