PARIS — Currency volatility is driving global tourism, with April spending surging 50.1 percent, its highest level since February 2011, according to the most recent Global Blue data.
Spending by Chinese tourists catapulted 92.4 percent in the month, while Russian spending declined 31.3 percent, according to a report by Barclays analyzing data from the tax-refund company.
Spending in Europe, up 40.4 percent in April, was eclipsed by the rest of the world, which recorded a 93 percent gain. Barclays noted the figures suggest higher spending my middle-class Chinese in Asia.
Watches and jewelry ranked as the strongest overall category, up 56.6 percent, while Chinese tourists gravitated towards leather goods, spending 78.2 percent more in the month.
Barclays said the latter figures suggests “there may be a slowing pace in the redirection of Chinese spending from Hong Kong (HK) to Europe in hard luxury with, for instance, Cartier currently sitting at a discount in HK after a 5 percent price cut and our price checks suggesting a 7 percent increase in Europe as part of Richemont’s semi-annual price adjustment.
“This supports our view that price cuts are a key risk for soft luxury, as the hard luxury category is already operating at more normalized price premiums between Mainland China, HK and Europe,” the bank added.
Russian tourism declined for the 16th consecutive month, despite a recent recovery in the ruble, hitting the fashion and clothing category especially. Meanwhile, European spending in April slipped 31.7 percent, signaling a “general decline in activity,” Barclays noted.
Tourism accounts for as much as 70 percent of luxury sales in Europe.