Buying power increases, while travel ability decreases
Money, law and travel restrictions are as many factors that can influence the mobility of Chinese tourists. We will overview the main factors that can influence and restrict Chinese tourists ability to travel.
The Chinese Yuan has appreciated in recent months , to reach 1 EUR = 7.92 CNY at the time of writing this article . This is one of the lowest rates of exchange for the last two years .
The appreciation of the Chinese currency increases the purchasing power of Chinese tourists , while others in South-East like the Japanese see theirs melt like snow in the sun.
Change in legislation in China
The new law did not slow the growth of the Chinese tourism market but it has affected their spending. Even though they have the ability to spend more due to the appreciation of their currency, they no longer the ability to do so.
A few years ago, Chinese tourists could take part in very cheap tours cross Europe and strongly encouraged to buy high-value items such as luxury goods. This kind of practice is now banned and Chinese tourists no longer have as many opportunities as before for purchasing .
However the promotion is still legal. All tourism agencies and other players are thus very careful not to break the law . Consequently , there was not as much change than what one would expect: the Chinese are waiting for you, and remain the biggest spending tourists in the world .
Yet trends change. From the clear preference for luxury items, they now increasingly prefer cultural discovery. It is no longer just about travel in a hurry between two shopping malls luxury .
Severe restrictions on the movement of Chinese officials
Since the anti – corruption measures initiated by the new Chinese government , Chinese officials have had their movements severely restricted , as well as their ability to give and receive gifts of great value. And this especially between influential businessmen and representatives of the official party
These measures have had the effect of greatly reducing the market for luxury watches or men’s fashion . Surveys have also shown that a large number of European and Singapore were closed to Chinese officials destinations.
The U.S.A. and Australia
With new regulations in the USA and in Australia, to facilitate the entry of Chinese tourists on their territory, fewer tourists are likely to go in the faraway Europe
The stream of Chinese tourists is now shared between the following destinations
• Other Asian countries such as Thailand,
• The United States
In response to this new division of tourist flows , luxury brands have decided to set up branches on the West coast of the United States.
Purchases in mainland China are increasingly favored
The rise of trade of luxury in China highlights the desire of the Chinese to buy their products as soon as possible . Why ? Simply because with a 7% growth they now have the ability to afford what they want immediately rather than waiting for an opportunity to arise by itself such as a friend or themselves going abroad
It is certain that Chinese tourists are no longer looking for the same things when they go on a trip , either by choice ( behavior change) or obligation (anti -corruption laws ) .
Yet with continued growth and a stronger yuan , their taste for luxury does not wane , it’s simply the place of purchase that changes. This express a change in mindset as well
They now have the power to buy in their home country, so they buy immediately to fulfill their desires. Let’s not forget that China, with its strong presence of e-commerce platforms and delivery methods makes it easy for customers . This type of service encourages Chinese not to wait whenever they want to buy something, even when it comes to luxury.