Move over, Brits: Why Chinese tourists are Spain’s golden ticket

Amid highly publicized protests against mass tourism in Barcelona, Malaga, and the Balearic and Canary islands, Spain is seeing a resurgence in mainland Chinese tourist arrivals – a development eagerly welcomed by luxury retailers in cities like Madrid, Marbella, and Valencia. More than a temporary summertime spike, Spain welcomed over 100,000 mainland Chinese tourists in the first two months of 2024 alone, contributing to a 207% YoY surge in the first quarter, according to Turespaña, the country’s official tourism marketing agency. This comes following a modest recovery of Chinese tourists after the Covid pandemic crimped arrivals – in 2023, Spain welcomed around 380,000 Chinese tourists, roughly 50% of the pre-pandemic level. Visitor numbers expanded following the lifting of travel restrictions in 2022, leading to strong year-on-year increases driven by pent-up demand: 2023 data showed Chinese tourist arrivals soared by over 575%, spending increased by 388%, and overnight stays grew by 122%. The rebound in Chinese tourist arrivals over the past year has been bolstered by improved flight connections between Spain and China: direct flights in spring 2024 surpassed 2019’s level by nearly 50%, and Spain’s tourism industry is poised to benefit significantly, particularly in the luxury sector. Changing profiles As visitors return, Spain’s Chinese tourist profile is shifting away from mass group tourism. In 2023, Chinese tourists spent an estimated 1.1 billion euros ($1.2 billion) in Spain, with average daily expenditure at 288 euros ($321). That’s a 20% increase in spending per visitor compared to the pre-pandemic level, suggesting Chinese visitors now view Spain as a destination for luxury shopping and longer stays, over week-long group tours ticking off tourist sites. Recent data from Turespaña showed 65% of Chinese tourists visiting Spain in 2023 traveled for leisure, while 28% came for professional reasons – a large portion of the latter likely comprises golden visa seekers, as Chinese investors rush to buy property before Spain terminates its program. The majority (87%) of Chinese visitors are independent travelers, and most (91%) opted for hotels rather than the Airbnbs and other short-term rentals that have irked some residents of Barcelona and the Canaries. The primary destinations for Chinese tourists last year were Catalonia (49%) and Madrid (30%). For retailers and hoteliers, Chinese tourists in Spain represent a lucrative demographic: young and well-educated. The average Chinese visitor is 37 years old – seven years younger than the typical international tourist (44.1 years) – and 95% have higher education. Their primary motivations for visiting Spain are shopping (62%) and cultural and city visits (both 61%). With an influx of young, shopping-hungry tourists, Chinese spending in Spain is poised to surge this year. The Travel Trends 2024 report by Visa and the Payment Innovation Hub forecasts that Chinese tourists will increase their travel budgets by 11% to 20% compared to 2023, with nearly half expected to spend over 3,000 euros (about $3,350) per person, while 22% are projected to spend more than 5,000 euros ($5,575). This level of spending gives China outsized influence in Spain’s tourism industry, which is eager to shift away from the cheap, mass-market model popularized by destinations like Benidorm in Alicante or Magaluf in Mallorca. While Chinese tourists comprise only 0.4% of Spain’s annual international visitors, they account for 1% of total tourist spending. This high-value, low-volume trend contrasts with the 17.3 million British tourists who visited Spain last year. This sizable cohort currently represents more than 20% of tourist arrivals and accounts for 18.4% of total tourist spending – ahead of Germany (11.9%) and France (9%). But Spain’s British tourists spend less and stay for shorter periods compared to their Chinese counterparts; on average, British visitors stay 7 nights and spend 1,151 euros ($1,285) per-person, whereas Chinese tourists stay longer, averaging 10 nights, and spend 2,958 euros ($3,300) per person. Shopping is a core activity for Chinese travelers, while British tourists focus on beach holidays (76%), followed by shopping (55%) and city visits (54%). This highlights a distinct difference in travel behavior and spending patterns between the two visitor groups. Luxury shopping surge Mainland Chinese tourists are crucial as Spain promotes itself as a destination for high-end tourism and shopping. A recent Global Blue report reveals Spain has overtaken Germany as the third most popular European destination for tax-free shopping, capturing 16% of the market, closely trailing France and Italy at 27% each. Chinese tourists have been instrumental in this growth, dominating spending on luxury goods. Between June 2023 and May 2024, their average expenditure per-luxury shopping transaction in Spain reached 2,550 euros ($2,845), the highest among all international visitors. During this period, total tax-free spending on luxury items in Spain increased by 164% compared to 2019. Despite broader economic concerns dampening Chinese consumers’ domestic high-end purchases, spending on international tourism and tax-free luxury shopping abroad continues to recover – welcome news for Spanish brands such as Loewe and department store El Corte Inglés. The recovery is further boosted by new direct flight routes connecting Spanish capital Madrid with affluent cities Hangzhou and Wenzhou, the former of which boasts two Loewe stores. What’s next? With fewer than 400,000 mainland Chinese tourists visiting Spain annually – on par with UK numbers, but below France or Italy – there’s significant room for growth in Chinese arrivals and spending as Spain’s tourism gradually returns to pre-pandemic levels. Turespaña projects Chinese tourist arrivals to reach 73% of 2019’s level by year-end, with full recovery by 2025. Crucially for Spain’s tourism market, modern Chinese tourists are the ideal profile, causing less friction among locals and police than some British visitors, mostly staying in hotels and shopping before flying home. As Chinese tourists, particularly Gen Z and millennials, evolve beyond shopping to spending on gastronomic and cultural tourism in places like Japan and Italy, Spain is well-positioned to capitalize on this trend through its rich culinary culture and world-class museums and galleries. But Spain faces challenges in marketing itself as an accessible destination for Chinese tourists. Spanish-language proficiency in China lags far behind English or French, and unlike Italy – which has large pockets of overseas Chinese and Chinatowns in Rome and Milan – Spain has few concentrations of Chinese residents outside of Madrid’s Usera neighborhood and Barcelona’s Chinatown. This could deter Chinese tourists from choosing Spain as a potential destination. Recognizing the hurdle, Spain has been addressing the issue with multilingual tourism websites and marketing – but to fully tap into the Chinese market potential, it’s crucial they continue to invest in these moving forward.

Move over, Brits: Why Chinese tourists are Spain’s golden ticket

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Published August 28, 2024

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Move over, Brits: Why Chinese tourists are Spain’s golden ticket