According to the Financial Times, American stores lose income due to a decrease in the number of Chinese tourists as they do not want to visit the States.
In recent years, tourism flows have been constantly increasing. However, since last year, it began to fall. In 2018, 3 million visits were recorded. It was the first reduction since 2003. This summer cannot be called successful in terms of tourism.
The number of tourists has decreased for several reasons. Firstly, the rules for getting visas by the Chinese are much stricter. Secondly, the trade conflict has influenced the desire of the Chinese to travel around the States. Finally, the depreciation of the yuan against the dollar has become one more reason for losing income from tourists.
The fall of the Chinese tourism has negatively impacted US business. Macy’s has reported a decline in purchases by foreigners. The indicator has fallen almost 10%. The Tapestry Group, which owns several popular brands, has suffered losses too.
Also, purchases of luxury products of Tiffany & Co. have fallen significantly. According to the results of the first quarter, the company has reported a decline in profit by a quarter. The income of the company depends entirely on foreign buyers. Moreover, luxury products of Tiffany & Co is one more company, which has faced a drop in sales and, consequently, income. Its American stores are going through difficulties, while European sales, on the contrary, are growing.
According to the Financial Times, the share of purchases by the Chinese tourists in the United States is rather significant. The Chinese make up only 8% of the total tourist flow; however they are very fond of shopping. Every tourist from the Celestial Empire spends about 7 thousand US dollars to visit America. So it is not surprising that the business feels the decrease in the number of tourists from China.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group