LONDON — Tourist spend globally, and in Europe, continued to deteriorate in June, and the problem is only set to worsen following a suspected terrorist attack on Thursday in Nice, France that killed at least 84 people.
According to an analysis of the latest Global Blue data by Barclays, tourist spend fell 13 percent globally in June. In Europe, it fell 16.8 percent after a slight improvement in the previous month when declines were in the single digits.
The Asia-Pacific region showed a 4.1 percent decline after a flat result in May — despite easier comparatives with last year.
Barclays noted that Chinese consumers globally posted their fourth consecutively negative monthly result since 2010, with a 17.5 percent fall in June, and a 17.4 percent decline in May. Russian spending continued to wither, notching a 32.4 percent downturn in the month.
“In our view, the recent daigou crackdown measures put in place by the Chinese government are putting further pressure on Chinese consumer travel and spending abroad, in addition to terrorist attack fears and biometric visa changes in Europe,” said Barclays in its report on Friday.
Daigous are shoppers who buy luxury goods, and even groceries, in foreign markets and send them to clients in China. The aim is to circumvent the 30-40 percent price premiums found on certain goods in China.
Chinese tourists have also diverted their trips to the Asia-Pacific region due to the threat of more terrorist attacks in Europe.
Chinese tourist spending is also under pressure: Chinese global spending fell for the fourth consecutive month, posting a 17.5 percent decline in June, after 17.4 percent decline last month, and an 18.5 percent one in April.
Chinese spending in Asia-Pacific was up 1.8 percent, compared with minus 4.1 percent in May, boosted by a strong result in South Korea. In Europe, Chinese spend was down nearly 25 percent, compared with a fall of 24.5 in May and 23.8 percent in April.
In Europe, France saw a decline of 17.6 percent compared with May’s fall of 21.2 percent; Germany was down 18.2 percent and Italy worsened, dropping 18.9 percent, compared with minus 4.5 percent in May.
Switzerland was resilient, up slightly at 0.8 percent while the U.K. fell 17.1 percent after rising 2.6 percent in May. Barclays noted that the June figure does not include any post-Brexit impact on spending in the U.K.
The British pound crashed following the country’s vote to leave the European Union, and tourists from Europe and further afield took full advantage, flocking to stores to pick up bargains during the last week of June.
Tourist purchases in Spain turned negative at minus 9 percent after a 7.7 percent uptick in May. Within the Asia-Pacific region, Singapore was down 4.3 percent compared with a flat May, while Japan was down 11.6 percent in June.
Korea was an outlier, showing 122.2 percent growth against a period of easier comparative figures from the MERS coronavirus outbreak last year.