Chinese Tourists Outspend Foreign Counterparts by USD 77 Billion

Steven Schwankert | Oct 11, 2014 3:00 pm | 5 comments | 2217 reads

It's not exactly a fair comparison, but Chinese tourists spent USD 77 billion more during the first three quarters of 2014 than foreign visitors did in China over the same period. 

That is a very us-and-them comparison: all of the money spent by Chinese tourists, versus everything spent by foreign tourists, whose numbers have been declining for at least a year, in China, according to People's Daily. Ninety-five million trips were made to China, versus 85 million outbound trips during the same period.

The deficit for the year could be as high as USD 100 billion.

"Despite occasional disorderly conduct, Chinese tourists were generally well received abroad as many of them spent lavishly on luxury goods, from branded bags to expensive wrist watches," People's Daily wrote, in a way that manages to demean not only Chinese tourists, but those who do business with them overseas.

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Email: stevenschwankert@thebeijinger.com
Twitter: @greatwriteshark

Photo: CNN

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Re: Chinese Tourists Outspend Foreign Counterparts by USD 77...
Posted Nov 26, 2014 5:52pm by Steven Schwankert

TX_Chick makes a great point: why buy things here when you can buy them and get a trip abroad for about the same money, maybe even less?

Think about it -- how much stuff do you buy when you're traveling, either abroad or back to your home country because 1) that brand doesn't exist in China; 2) it's more expensive in China; 3) your size isn't available in China. After many years here, there is still a whole raft of things I not only would never buy here, but wouldn't consider doing so.

Case in point: do you know that when Solana opened, there was an L.L. Bean store there? But the outlet ultimately closed because consumers of the brand in China could get it cheaper either in the US or by some form of mail order.

I agree with Admin -- the stats are relevant because it's obvious tourists from China are spending lots when they're abroad, much more than most of their counterparts from any other country.

Re: Chinese Tourists Outspend Foreign Counterparts by USD 77...
Posted Nov 26, 2014 5:45pm by admin

^ your points are valid but the stat remains the same: Chinese people are spending shitloads more than other nationalities when they travel, and its much more about the luxury goods than it is about additional subway fare

And although they do not state so in the article, I have heard people in the tourism and retail businesses in the US say their biggest spending customers are Chinese -- ie the Chinese person visiting New York is spending more than the Japanese, Russian, European ...

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Re: Chinese Tourists Outspend Foreign Counterparts by USD 77...
Posted Nov 26, 2014 4:37pm by TommyUK123

Isn't this utterly meaningless? I mean...if it was compared to any foreigner when they travel anywhere, it would make more sense, but it has clearly been tipped in China's favour to make the numbers sound more ridiculous...Let's say a Londoner comes to Beijing and a Beijinger goes to London - the Beijinger is BOUND to spend tons more in London than the Londoner will here. The tube in London costs about 7-8 pounds for a day ticket, wheras a daily average of, say, 5 trips (that's conservative, as well) in Beijing costs just 1 pound. A taxi in Beijing can cost as little as 1.30 pounds, whereas a London cab will set you back AT LEAST 5 pounds. In London, the cheap pubs cost the same as the middling pubs here, the food is about 10 times more expensive, the hotels 3-4 times more expensive. And to boot, TX_Chick is right in that there are those going overseas with one of the main purposes being to buy what they've seen in the Beijing LV and Gucci stores for 30 percent lower than they would here.

Another good point made above is that foreigners coming into China come here with the express purpose of spending less, I think. Foreign shoppers in China might be looking for cheaper tailored clothing, cheap DVDs etc...the Chinese going to Europe and the US are looking for luxury stuff (and yet ironically are also out for better deals). It stands to reason that what they spend is going to be WAY WAY more than what foreigners spend in China. I reckon if you look at what foreigners living in China spend on their social lives compared to Chinese living overseas, you might also see massive discrepancies, but then what would it all even mean anyway? Does it mean we're smarter for getting better deals in China? Does it mean they're less miserly when it comes to parting with cash? Basically this is all just numbers crunched into an interesting sounding blog. Blargh!

Re: Chinese Tourists Outspend Foreign Counterparts by USD 77...
Posted Oct 12, 2014 7:55am by TX_Chick

But look at what they are buying- luxury goods for much less than they would pay in China, to the tune of 30% for many things. When my local friends go overseas they have loads of friends requesting that they buy things for them on their trips. One friend had a huge shopping list that ranged from makeup to $1000 watches.

When I travel, I'm not going on a shopping trip, and when my friends come to China, they aren't coming to spend money on luxury goods, but do want to take home a few souvenirs.

It is fact, but you have to look at what people are buying and why.

Re: Chinese Tourists Outspend Foreign Counterparts by USD 77...
Posted Oct 11, 2014 4:27pm by admin

well, it is relatively comparable

95 million trips into china
85 million outbound trips

A deficit of 77 billion means that the average outbound Chinese tourist spends about $1000 more per trip than the average inbound tourist.

 

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