The Great Mall: how China is turning foreign tourists into shoppers

Foreign tourists in China are increasingly drawn to shopping, said Steven Zhao, CEO of China Highlights, a travel agency that organises tours of the country.

“They’ll buy drones and take them back home,” he said, noting the trend has become “more obvious” over the past two years – especially among Middle Eastern travellers – as China produces an outsized share of the global total, with some devices small enough to fit in the hand.

“Drone prices are cheap and the choices are numerous,” he said, referring to products available on the Chinese market.

Relaxed visa policies could make China an even stronger draw for overseas shoppers. Inbound tourism revenue is likely to rise to 18 per cent of the overall travel market in five years, up from the current 11 per cent, according to a Morgan Stanley research note on Thursday.

“Shopping will become an increasingly significant reason for inbound travellers to visit China, especially considering the higher trade barriers globally”, one of the analysts told the Post, referring to tariffs and other restrictions that have raised prices in many parts of the world.

Morgan Stanley Research highlighted China’s value-added tax (VAT) refunds for tourists as a driver of expected growth. The initiative was liberalised this year to stimulate the domestic economy, allowing visitors to receive cash that they can spend elsewhere in the country.

South China Morning Post