Shopping tourism refers to travelling to destinations specifically for shopping purposes and gaining unique shopping experiences. Tourists' expenditure with the intention of buying goods across borders has significantly increased in the recent past. With the availability of large international retail brands and affordable prices of high quality and branded items, shopping has evolved as a key motivation for travelling. Factors such as trendy fashion, electronics goods, and duty-free luxury products available at discounted rates compared to domestic prices have boosted the cross-border shopping boom.
The Global shopping tourism market is estimated to be valued at US$ 497.97 Bn in 2024 and is expected to exhibit a CAGR of 9.3% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the shopping tourism market are Japan Deluxe Tours, Trafalgar Tours, EF Educational Tours, The Shopping Sherpa, Luxury Escapes, Costco Travel, AAA Vacations, Travel + Leisure, Context Travel, Intrepid Travel, Tauck Tours, Backroads, Country Walkers, G Adventures, World Expeditions, AdventureSmith Explorations, Esquire Travel, and Abercrombie & Kent. These players offer specialized tours and packages facilitating hassle-free shopping experiences in prominent global shopping destinations.
The Shopping Tourism Market Trends availability of a wide assortment of products at competitive prices presents significant opportunities for tourists seeking unique shopping experiences abroad. Major shopping destinations worldwide have witnessed substantial foreign spending owing to their tax-free shopping policies and discounted luxury goods compared to local markets. Countries such as Singapore, Dubai, London, New York, Bangkok, and Seoul attract millions of international tourists annually through their vibrant shopping districts, electronic markets, and luxury brand stores spread across megamalls.
The growing global middle-class with increased disposable incomes and changing consumption patterns has accelerated the growth of shopping tourism on a global scale. Emerging economies in Asia Pacific and Middle East are realizing their potential to become prominent shopping hubs by investing in state-of-the-art retail infrastructure, promotional campaigns targeting foreign tourists, and implementing policies favorable for cross-border shopping. Several destinations have recognized shopping as a means to diversify their tourism product and attract high spending foreign visitor segments.
Market drivers
One of the key drivers for the shopping tourism market is the growing popularity of duty-free shopping. Tourists are able to avail attractive discounts and save substantially on international luxury goods, premium cosmetics, electronics and spirits by shopping at duty-free outlets located within airports and cruise terminals. Many destinations have significantly expanded their duty-free shopping space and product assortments to serve the rising demand.
Market restraints
Restrictions imposed on tax and duty-free allowances by various governments for travellers pose a key restraint to the growth of shopping tourism. Frequent changes made to import rules particularly impact impromptu shopping trips. Additionally, fluctuations in currency exchange rates can prove discouraging for foreign shoppers at times leading to reduced expenditures.
Segment Analysis
The Shopping Tourism Market is dominated by the organized tourism segment, wherein shopping tourist destinations are included in planned tour itineraries by tourism companies. This segment accounts for over 50% revenue share as organizing transport, accommodation and destinations under one package is a convenient option for tourists. The unorganized segment, comprising individual travel to shop at various destinations, holds a smaller share due to lack of organization and logistical support for tourists. One of the fastest growing sub segment is the luxury goods shopping tours, mainly catering to high spending tourists visiting cities like Paris, Milan, London and New York. These tours focus on luxury fashion goods, designer accessories and premium cosmetic products stores located in these cities.
Global Analysis
Europe accounts for the largest share in the Shopping Tourism Market currently.Countries like France, Italy, UK and Germany attract the maximum number of global shopping tourists due to the presence of prominent luxury fashion brands and a wide variety of goods ranging from affordable to high-end products. North America follows Europe with US and Canada witnessing substantial annual growth in shopping visits. The Asia Pacific region is expected to showcase highest growth during the forecast period with increasing spending power and middle class population in countries like China, Thailand, Indonesia and India contributing to the growth. Countries in West Asia like UAE and Qatar are also emerging shopping destinations owing to development of international shopping centers and malls.
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