Chinese tourists: growth of tax-free spending slows in Q3 2014

By

Anne-Sophie Savenier

Published
Oct 31, 2014

Chinese tourists now account for nearly a third of the world's total spending on tax-free shopping (32%). 

Nevertheless, even while China remains the most significant nation in terms of global shoppers, the tax-free spending of these consumers has slowed, rising only 10% in Q3 2014 as compared to the same period in 2013, according to the foreign traveller spending experts at Global Blue.

While positive growth is normally a positive sign of momentum, the 10% increase pales in comparison to the 81% increase recorded in 2010 or the 30-50% increases recorded until 2013, when the rise began to be abruptly reduced.

According to Global Blue World, the slowdown in spending growth is actually a sign of the democratization of Chinese tourism. 

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Tourism in Europe, which was previously primarily reserved for the upper middle class, has now been made accessible to the “relatively” ordinary middle class.

Inevitably, the profile of the average consumer is changing even if they continue to make up the most affluent 3% of the Chinese middle class. 

The result? Even while "rich” and "upper middle class" Chinese tourists are travelling the same as before… the increase in the amount of "ordinary" Chinese tourists is tending to bring down the total amount of tax-free spending. 

It’s a consequence that Global Blue believes to be inevitable in the development of the nation’s global shopping.