Despite the challenges posed by the Covid-19 pandemic, the United States has retained its leading position as the preferred choice for shopping holidaymakers, says travel industry association WTTC.

International travel organisation World Travel & Tourism Council (WTTC) says that the United States of America remains the preferred choice for shopping holidaymakers, as revealed by a survey at the Virtuoso Travel Week that took place in Las Vegas recently.

In a press statement, WTTC says that the US was the largest contributor of retail tourism to GDP in 2019 with USD 34.7 billion.

Despite the challenges posed by the Covid-19 pandemic, the US retained its leading position in 2020 with USD 17.5 billion and continued to grow in 2021, contributing USD 23.9 billion to the country’s economy through retail tourism.

According to the report, global retail tourism was worth USD 178.2 billion in 2019. This is equivalent to 6 pc of the travel & tourism sector and can represent more than 15 pc in some destinations.

WTTC says that historically, retail tourism has been overlooked by researchers, resulting in limited data for travel providers to plan and invest strategically.

“Retail tourism is a thriving market segment of the Travel & Tourism sector in the US. For millions around the world, shopping is one of life’s great pleasures. The pandemic impacted both travel and retail industries severely, but as the world reopens, this report shows how the retail experience can become a journey too. Our latest findings on the US reinforce its allure as a shopping mecca, highlighting the vital role that retail tourism plays in the country’s travel and tourism sector,” says WTTC President & CEO, Julia Simpson.

According to WTTC, governments that incentivise this retail segment with tax-free shopping have seen tourism revenues boom. Countries like the UK that scrapped tax-free shopping have seen visitors move to other countries like France or Italy, depriving the UK economy of critical export revenues.

In Paris, retailers have thrived since France set a three-day VAT rebate window for purchases exceeding USD 108 in 2019, with the Bicester Collection witnessing a dramatic spike in Paris visits which surpassed London as the UK phased out its VAT refund scheme. 

‘‘For millions around the world, shopping is one of life’s great pleasures. The pandemic impacted both travel and retail industries severely, but as the world reopens, this report shows how the retail experience can become a journey too. Our latest findings on the US reinforce its allure as a shopping mecca, highlighting the vital role that retail tourism plays in the country’s Travel & Tourism sector,” adds Simpson.

The statement says that a joint research collaboration between WTTC and the Hospitality and Tourism Research Centre of the Hong Kong Polytechnic University, in collaboration with the Bicester Collection, will be published on September 7 in La Roca Village, part of the Bicester Collection in Barcelona in Spain.

WTTC says that its upcoming report will provide valuable insights into people’s shopping habits when travelling, such as out-of-town retail destinations; the latest trends in retail tourism, such as sustainable retail and the immense potential it holds for destinations and businesses.