WTTC: The United States is the most popular shopping tourism destination

The United States remains the top destination for shopping holidaymakers, the World Travel & Tourism Council (WTTC) revealed at Virtuoso Travel Week, held in Las Vegas from August 13 to 18.

This is the result of a joint study between WTTC, the Hong Kong Polytechnic University’s Hotel and Tourism Research Centre and the Bicester Collection.

In 2019, retail tourism was valued at $178.2 billion, equivalent to 6% of the tourism sector and exceeding 15% in some destinations.

Historically, retail travel has been neglected by researchers; resulting in limited data for travel suppliers to conduct strategic planning and investment.

WTTC’s latest report seeks to correct this, providing valuable insights into people’s shopping habits when travelling, such as out-of-town retail destinations, the latest trends in retail tourism such as sustainable retail, and its huge potential for destinations and businesses.

The latest data released by international organizations show that the United States was the country with the largest contribution of retail tourism to GDP in 2019 (US$34.7 billion).

Despite the challenges of the pandemic, the United States maintained its lead in 2020 with $17.5 billion and continued to grow in 2021, contributing $23.9 billion to the U.S. economy through retail travel.

Governments have incentivised this retail sector through duty-free shopping, which has led to a surge in tourism revenue. Countries like the UK that have abolished duty-free shopping have seen tourists switch to other countries such as France or Italy, depriving the UK economy of key export revenue.

In Paris, retailers have thrived since France introduced a three-day VAT refund window for purchases over €100 in 2019. As Britain phases out its VAT refund scheme, Bicester Collection has seen a surge in visits in Paris, outpacing London.