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Europa Press
Translated by
Barbara Santamaria
Published
Dec 19, 2016
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Spend by Chinese visitors to Spain declines 6%

By
Europa Press
Translated by
Barbara Santamaria
Published
Dec 19, 2016

Spend by Chinese visitors to Spain has declined by 6% in the year to October, however Chinese shoppers continue to dominate as the leading shopper nationality in Spain, according to a new analysis from Global Blue. Luxury sales in Spain are expected to see double digit grow in 2017.


Spend by Chinese visitors to Spain declines 6% - Loewe

 

The devaluation of the yuan and China’s new tax on overseas purchases, introduced to boost domestic consumption, are to blame for the decline, says a report from Global Blue conducted by Circulo Fortuny.

It’s a similar situation for visitors from Russia, an economy that is highly sensitive to oil price fluctuations and the devaluation of ruble, which have led to a 9.7% decline in terms of tax free shopping spend in Spain.

Meanwhile, international tax free spend has reported consistently strong reports in the UK since the EU vote in June, a situation that is proving to have “positive consequences” for Spain. The Mediterranean country is becoming a European bright spot when compared to cities like Paris, where terrorist attacks and crime rates have scared tourists away, according to Global Blue.

Tax free spend from non-EU visitors is expected to reach 2 billion in 2016, according to estimates released by Global Blue in the summer, representing an increase of 2-3% on a year-on-year basis.

Spain’s tax free shopping spend has seen double digit growth in the last few months, and is expected to grow 10-15% to 2.3 billion euros next year.

In terms of nationalities, Chinese visitors to Spain spend the most with 31% of visitors buying tax free products, followed by Russian tourists with 8%, Argentinian (7%), and the US and Morocco (each 4%).

While spend by Chinese and Russian visitors has declined, international tax free spend by Argentinian, Moroccan, and American tourists have increased by 62%, 14% and 13% respectively.

Global Blue Director Lluis Llorca said Argentinian’s impressive shopping spend uplift responds to price differences in countries. “The gap is brutal,” said the executive, who also highlighted the volatility of this market.

Fashion and accessories were the most popular tax free items in October, accounting for 66% of sales, followed by jewellery and luxury watches with an 18% share.

Llorca said that spending in Madrid remains below that of other European cities.  However, based on a Deloitte report which analyses luxury brands in different regions, he stressed that Europe will continue to be a retail hotspot as prices are significantly lower than in Asia or the Middle East.

Global Blue expects a number of factors to play a role in this, including rising oil prices and their impact on the Russian, Mexican and the Middle East economies.

Spain will also benefit from the new travel routes connecting Spain to Latin America and Asian countries, as well as Norwegian Air’s new service to Barcelona from the US.

The Spanish government is also seeking to reinvent the country as a cultural and shopping destination, continued Llorca. “We have to focus on ‘quality tourism’, where shopping is an important element,” he added.

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