WTTC Reveals the Impact of Retail Tourism

In a recently released report, the WTTC presents valuable information that helps individuals better understand shopping tourism.

The World Travel & Tourism Council (WTTC) has unveiled a groundbreaking report titled "Global Retail Tourism: Trends and Insights," marking a transformative milestone in our understanding of shopping tourism.

This comprehensive research initiative, conducted in collaboration with the Hospitality & Tourism Research Centre at The Hong Kong Polytechnic University and in partnership with The Bicester Collection, was recently introduced during a momentous event hosted at La Roca Village, a part of The Bicester Collection, situated in Barcelona, Spain, to coincide with the Village's illustrious 25th anniversary.

In the year 2019, the realm of retail tourism made a substantial impact, accounting for a noteworthy US$178 billion in economic value, constituting 6% of the overall Travel & Tourism sector's worth, and in some locales, it even surpassed the 15% mark.

Despite its profound influence on global economies, the sphere of retail tourism has long been underexplored, resulting in a scarcity of critical data essential for strategic planning.

The latest WTTC report effectively addresses this void by providing profound insights into the shopping preferences of travelers, encompassing their proclivity for visiting retail hubs situated beyond city centers, and notably, their increasing interest in sustainable shopping practices.

This report illuminates the immense, hitherto untapped potential of retail tourism, promising substantial advantages for both destinations and businesses alike.

According to the report's findings, the retail tourism sector embarked on a recovery trajectory in the aftermath of the COVID-19 pandemic, with the Americas and Europe leading the resurgence. Demonstrating impressive resilience, this sector surpassed overall economic growth rates in nearly all markets even before the pandemic, underscoring its robustness and promising future prospects.

Retail tourism now plays a pivotal role in revitalizing the Travel & Tourism sector, evident in the remarkable 82% surge in inbound tourism revenues experienced in 2022. Shopping has evolved beyond a leisure activity; it now profoundly shapes travel decisions, enhances the allure of destinations, bolsters foreign exchange earnings, and lends support to local brands and products.

Furthermore, the report spotlights emerging trends such as 'retailtainment,' a fusion of retail and entertainment, aimed at enticing shoppers and elevating the customer experience.

Julia Simpson, President & CEO of WTTC, emphasized,

“Retail tourism is no longer just about buying souvenirs; it’s a driving force behind the recovery of the Travel & Tourism sector, contributing significantly to revenue, job creation, and overall economic growth.

“This report underscores the untapped potential of retail tourism and the need for stakeholders across the Travel & 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.

Desirée Bollier, Chair of The Bicester Collection and Global Chief Merchant, articulated,

“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.”

Professor Haiyan Song, Director of the Hospitality and Tourism Research Centre at The Hong Kong Polytechnic University, emphasized,

“Sustainability in Travel & 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.”

The report offers invaluable insights into the spending patterns and preferences of today's shopping tourists, highlighting the integration of experiential tourism with shopping experiences to meet the evolving expectations of retail enthusiasts.

While traditional high-street stores remain a popular choice for shopping, the appeal of out-of-town retail destinations is on the rise, with approximately one-third of survey respondents reporting visits to such locales. Furthermore, online shopping complements traditional in-person retail experiences rather than serving as a substitute.

Additionally, the report furnishes critical recommendations for stakeholders in the retail tourism sector, offering strategic guidance on navigating these emerging trends successfully.

While the outlook for retail tourism appears promising, it is imperative to acknowledge and address certain challenges on the horizon, including issues related to labor regulations and the impact of tax-free shopping policies.

Source: breakingtravelnews.com