Retail tourism is playing a pivotal role in the recovery of the travel sector, which saw inbound tourism revenues surging by 82 pc in 2022
The World Travel & Tourism Council (WTTC) has published a new report Global Retail Tourism: Trends and Insights, dissecting shopping tourism.
According to the WTTC, retail tourism is playing a pivotal role in the recovery of the travel sector, which saw inbound tourism revenues surging by 82 pc in 2022. It adds that 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.
This is in comparison to retail tourism representing a substantial USD 178 billion, comprising 6 pc of the travel & tourism sector’s value, and exceeding 15 pc in some destinations in 2019.
Julia Simpson, WTTC President & CEO, Professor Haiyan Song, School of Hotel and Tourism Management at The Hong Kong Polytechnic University Director of Hospitality and Tourism Research Center, Desirée Bollier, The Bicester Collection Chair and Global Chief Merchant, Elena Foguet, The Bicester Collection Business Director Spain
The report was published by WTTC in collaboration with Hospitality & Tourism Research Centre of the Hong Kong Polytechnic University and the Bicester Collection.
WTTC’s report suggests retail tourism began to recover from the 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.
The report highlights emerging themes, including ‘retailtainment’, the fusion of retail and entertainment, to incentivise shopping and enhance the customer’s experience.
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.
“Retail tourism is no longer just about buying souvenirs, it is a driving force behind the recovery of the travel and tourism sector, contributing significantly to revenue, job creation, and overall economic growth,” says Julia Simpson, President & CEO of WTTC.
“Merging economic prosperity with enriching experiences, retail tourism uplifts communities while celebrating cultural heritage. A collaborative approach between retail, travel, and tourism elevates the traveller’s journey, balancing sector growth with conscious actions. Through destination integrity, technological embrace, public-private cooperation, empathising with the traveller’s point of view and advocating for well-considered policies, we chart the path for retail tourism’s dynamic future,” says Desirée Bollier, Chairperson and Global Chief Merchant of the Bicester Collection.
“This report underscores the untapped potential of retail tourism and the need for stakeholders across the travel and 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,” adds Simpson.
“Sustainability in travel and tourism will continue to grow in significance after the Covid-19 pandemic and it is imperative that retailers understand how much shoppers and travellers are willing to pay for sustainable products,” says Professor Haiyan Song, Director of Hospitality and Tourism Research Centre in the School of Hotel and Tourism Management at the Hong Kong Polytechnic University.
The report says while the future of retail tourism looks positive, It is 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.
