U.S. retailers and other businesses are feeling the impact of a drop in tourism from China, according to business executives and economic experts.
Following several years of double-digit growth in the number of visitors from China, there was a 6 percent decline last year, to 2.99 million people, reports the Financial Times. Macy’s says this contributed to its own 9 percent drop in sales in the second quarter, and other retailers similarly say they have been affected. Tapestry, owner of Coach and other retail brands, blamed “pressure from lower tourist spend” for a weak second-quarter performance.
“It’s a significant worry, given that China has represented so much of the growth in international tourism over the past decade”
Chinese tourists are a particularly valuable revenue source, retailers say. “They’re more apt to buy at full price, and there’s virtually no returns,” said Macy’s CEO Jeffrey Gennette, as reported in the newspaper.
“It’s a significant worry,” said Adam Sacks, president of Tourism Economics, “given that China has represented so much of the growth in international tourism over the past decade.”
By Edmund Mander