Chinese outbound tourism propels luxury travel industry of Australia

The rising outbound tourism of China and the opulent travel expenditure made by Chinese tourists have taken two Australian cities into the list of the top 25 cities for luxury goods consumption. According to a study by Boston Consulting Group (BCG), Sydney and Melbourne climbed the ranks steeply owing to the rising number of Chinese visitors in 2013.

According to the report, consumers globally spent more than US$1.8 trillion on both luxury travel goods and experiences such as tailored tours which is far beyond the US$390 billion usually cited as total global sales of goods. The report says consumers are favouring luxury travel experiences over luxury goods.

Emerging markets like China, Brazil, Russia and India are some of the most active drivers behind the growth of the luxury goods industry, accounting nearly 30% of the global market.

The surge of outbound tourism market in China is set to put the country as the largest source market for the global tourism industry. According to facts and figures, the Chinese travelers will account for a third of all the tourists visiting Melbourne and Sydney by 2020.

According to a senior partner of BCG, Mr. Jean-Marc Bellaiche, “Luxury travelexperiences are by far the most powerful driver of luxury spending everywhere. Collectively, they make up nearly $1 trillion of the annual global total.”