Retail Tourism: WTTC and Partners Unveil Ground-breaking Insights

The World Travel & Tourism Council (WTTC) has unveiled a transformative report titled “Global Retail Tourism: Trends and Insights,” a collaborative effort between WTTC, the Hospitality & Tourism Research Centre of The Hong Kong Polytechnic University, and The Bicester Collection. The report, released on the occasion of La Roca Village‘s 25th anniversary in Barcelona, Spain, promises to revolutionize our understanding of shopping tourism.

Historically under-researched, retail tourism represented a substantial $178 billion in 2019, accounting for 6% of the Travel & Tourism sector’s value and exceeding 15% in select destinations. Recognizing its profound impact on global economies, the report offers vital insights into travelers’ shopping behaviors, including visits to out-of-town retail destinations and emerging trends such as sustainable retail.

The study sheds light on the untapped potential of retail tourism for both destinations and businesses. It reveals that this segment began its post-COVID-19 recovery in 2021, with the Americas and Europe at the forefront. Even before the pandemic, it consistently outpaced overall economies, demonstrating its resilience and future growth prospects.

Retail tourism is proving to be a linchpin in the recovery of the Travel & Tourism sector, contributing significantly to revenue, job creation, and economic growth. Shopping is now a pivotal part of travel decisions, enhancing destination allure, boosting foreign exchange earnings, and supporting local brands and products.

The report identifies emerging themes, including ‘retailtainment,’ the integration of retail and entertainment, to incentivize shopping and enhance the customer experience.

Julia Simpson, WTTC President & CEO, emphasized the transformative role of retail tourism, stating, “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.”

Desirée Bollier, The Bicester Collection Chair and Global Chief Merchant, emphasized the synergy between economic prosperity and enriching experiences that retail tourism brings, uplifting communities while celebrating cultural heritage.

Professor Haiyan Song, Director of the Hospitality and Tourism Research Center at The Hong Kong Polytechnic University, highlighted the growing significance of sustainability in Travel & Tourism, underscoring the importance of retailers understanding the willingness of shoppers and travelers to invest in sustainable products.

The report offers valuable insights into the spending patterns and preferences of today’s shopping tourists, recognizing the merging of experiential tourism with shopping. While high-street shops remain popular, out-of-town retail destinations are gaining traction, with approximately one-third of respondents reporting visits to such locations. Online shopping complements rather than replaces traditional retail experiences.

The report concludes with essential recommendations for stakeholders in retail tourism, offering guidance on navigating these emerging trends successfully. It also acknowledges and addresses obstacles, including challenges related to labor laws and the impact of tax-free shopping policies, that must be overcome for the continued growth and sustainability of this dynamic sector.