Structural shift in Chinese tourism lowers overseas spending

Structural shift in Chinese tourism lowers overseas spending

17-01-2026

The behavior of Chinese tourists abroad is undergoing a profound transformation, and its impact is already being felt in many of the world’s leading destinations. Although outbound travel has recovered to levels close to those seen before the pandemic, the era of large-scale shopping and high spending at duty-free stores appears to have ended on a more permanent basis, marking a new phase in the dynamics of international tourism from China.

During the first 11 months of 2025, trips by Chinese citizens to Asian countries reached almost 93 per cent of the movements recorded in 2019, pointing to a clear recovery in mobility after restrictions linked to the global health crisis. However, one of the clearest indicators of this transformation is the sharp decline in spending on shopping in key destinations. A revealing example can be seen in South Korea, which before the pandemic relied heavily on Chinese visitors to sustain around 70 per cent of its duty-free sales, and which has since seen duty-free retail sales fall to levels similar to those of 2015.

This phenomenon is explained by several structural factors that go beyond simple fluctuations in tourism demand. First, China’s domestic policies in recent years have encouraged the expansion of duty-free retail within the country itself, especially in tourist areas such as Hainan Island, thereby reducing the incentive for travelers to spend large sums overseas. The availability of domestic tax exemptions, combined with the growing sophistication of China’s consumer market, means many tourists now find sufficient opportunities to buy luxury and branded goods without needing to leave the country.

Another driver of this new reality is a shift in the profile of the Chinese traveler. Older practices associated with organized group tours, where shopping at certain stores was effectively a mandatory part of the itinerary, have given way to more independent tourism motivated by cultural experiences and leisure rather than the acquisition of material goods. This change in focus is particularly evident among younger generations, who prioritize discovering destinations, local gastronomy, and engagement with the culture of the places they visit over traditional purchases of luxury items.

The broader economic context also influences these trends. Even though the renminbi has strengthened at certain times and made international travel more accessible, wider economic uncertainty—including strains in areas such as the property sector and a slowdown in growth—has encouraged more cautious spending. As a result, even when Chinese citizens travel abroad, their propensity to make large purchases has decreased, affecting economies that previously benefited from Chinese tourism characterized by high spending.

The reduction in overseas shopping does not necessarily mean a general retreat of Chinese tourism, which remains strong in terms of traveler volumes. Rather, it signals a change in the nature of that tourism. Destinations must adapt to a visitor who is looking for more meaningful experiences, personalized itineraries, and cultural activities, instead of focusing primarily on shopping opportunities. This requires rethinking tourism offerings, diversifying products and services, and emphasizing cultural richness and local experiences to attract this evolving segment.

The implications for receiving economies are significant. For countries that have traditionally depended on Chinese tourism as a consumption engine in sectors such as retail, hotels, and dining, this decline in spending may pose a challenge that demands a recalibration of visitor-capture strategies. It will be essential to redefine the value these visitors bring by focusing on longer stays, activities beyond conventional shopping circuits, and tourism products tied to culture, nature, or heritage.

International tourism from China is entering a new, more mature and diversified stage. The shift from shopping-centered trips to experiential and exploratory travel reflects not only changes in preferences and behavior among travelers, but also a broader structural transformation that invites destinations to innovate and adapt to the expectations of the 21st-century Chinese tourist.

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