Chinese travellers are returning to destinations across Asia in increasing numbers, marking a significant rebound in international tourism. Airports and shopping districts, once highly dependent on Chinese visitors, are now seeing foot traffic approach pre-pandemic levels. However, this surge in tourism has not translated into a corresponding rise in duty-free spending, a key revenue driver for many regions.
Industry data reveals that while outbound travel from China has recovered to over 90% of 2019 levels, duty-free revenues are still lagging behind, with some regions seeing numbers that haven’t been seen in a decade. Retailers who were accustomed to high volumes of sales in cosmetics, luxury goods, and electronics are now grappling with slower turnover rates. This contrast between increasing tourist arrivals and declining retail sales has become a focal point of conversation in the tourism and retail sectors.
According to analysts, shifting consumer behavior is a key factor driving this trend. Chinese travellers are increasingly prioritizing experiences, such as cultural activities, dining, and entertainment, over shopping for luxury goods. These changes reflect a broader transformation in the way Chinese consumers engage with international travel, as they seek more meaningful connections rather than material purchases.
Changing Shopping Habits
In past years, Chinese tourists were known for their affinity for bulk purchases, particularly in duty-free stores, during group tours. However, the travel landscape has changed significantly in recent years. Today, many Chinese travellers are opting for independent travel, skipping organized shopping stops that once fueled high sales at duty-free outlets. This shift toward more personalized travel experiences has significantly altered spending habits.
One of the major reasons behind this shift is the increased availability of luxury goods and cosmetics within China. With the rise of e-commerce platforms, many high-end products that were once exclusive to international markets are now readily available to Chinese consumers at competitive prices. As a result, the urgency to purchase such goods during overseas trips has diminished.
Furthermore, the rise of Chinese e-commerce platforms like Tmall and JD.com has further reduced the need for Chinese travellers to buy products abroad. With the convenience of online shopping and the ability to access a wide range of international goods from home, many consumers now see little value in purchasing luxury items while travelling.
Impact on Regional Retail Markets
The impact of these changing spending habits is most evident in countries like South Korea, which has long been a top destination for Chinese tourists. Duty-free sales in South Korea were once heavily reliant on the high volume of purchases made by Chinese visitors. However, recent reports indicate a significant decline in these sales, despite millions of Chinese tourists visiting the country in 2025. Retailers in South Korea have been forced to reassess their strategies as the traditional duty-free shopping model loses its effectiveness.
Similarly, Japan and Southeast Asia are experiencing a parallel trend. While tourism numbers are robust, the volume of duty-free transactions is considerably lower than in previous years. Retailers that once relied on high-spending visitors are now faced with the challenge of lower spending per visitor. As a result, these regions are experiencing shifts in their retail strategies, with some even diversifying into new business models to adapt to the changing tourism landscape.
The downturn in duty-free sales has had ripple effects across regional economies. While the hospitality and entertainment sectors have benefited from the increase in tourists, retail operators are feeling the strain. This imbalance has underscored the complexity of recovery in the post-pandemic era, where rising tourism does not necessarily correlate with a booming retail industry.
The Rise of Experiences Over Shopping
The younger generation of Chinese travellers is playing a key role in shifting the focus of international trips. Instead of prioritizing shopping, this group is increasingly seeking out cultural experiences, local dining, and entertainment activities. As a result, traditional shopping habits are being sidelined in favor of more immersive travel experiences.
Reports from the travel industry indicate that independent itineraries now often include fewer stops at shopping malls or duty-free outlets. Instead, many travellers are opting for activities that allow them to engage with the local culture, whether it be through attending cultural events, exploring historical landmarks, or enjoying local cuisine. This shift in priorities reflects a broader change in consumer expectations, where the emphasis is on creating lasting memories rather than collecting material goods.
This trend is not limited to just younger travellers. Even older generations are starting to place more value on experiences and the stories they create while travelling, rather than simply acquiring luxury goods. Retailers in the duty-free sector now find themselves competing with a broader range of attractions, making it more difficult to capture the attention of today’s savvy, experience-driven consumer.
Industry Response to Shifting Priorities
In response to these shifting consumer priorities, duty-free retailers across Asia are experimenting with new strategies aimed at capturing the attention of Chinese travellers. Some stores have started offering more exclusive, lower-priced products, while others are curating collections that appeal to consumers looking for unique, meaningful purchases rather than mass-market goods. The goal is to align more closely with the evolving preferences of today’s travellers, who value experiences and individuality over conventional shopping habits.
Additionally, marketing strategies are shifting away from a purely transactional approach. Retailers are increasingly focusing on emotional engagement, aiming to build stronger connections with consumers through storytelling and creating memorable experiences. By highlighting local culture and fostering deeper relationships, brands hope to transform the act of shopping from a simple transaction to a more engaging and enjoyable experience.
Retailers are also looking to improve the in-store experience by introducing interactive displays, loyalty programs, and digital promotions to entice visitors. With these new approaches, the retail industry aims to adapt to a changing consumer landscape and recapture the attention of Chinese tourists who are less focused on shopping.
What’s Next for Duty-Free Retailers?
The future of duty-free retail in Asia is uncertain, and analysts predict that duty-free sales will likely remain subdued unless retailers can successfully adapt to the new habits of Chinese consumers. The days of mass purchases made during group tours may be gone, replaced by a new era of travel where spending priorities lie elsewhere. As tourists continue to seek out more meaningful and personalized experiences, duty-free retailers will need to adjust their strategies to remain relevant.
Chinese travellers are expected to continue prioritizing experiences over shopping in the near future, focusing on cultural exploration, dining, and entertainment. Retailers who can align their offerings with these preferences may find new opportunities, but only if they can innovate and stay ahead of evolving consumer demands.
Ultimately, the ongoing tourism surge, coupled with weaker duty-free spending, reflects a broader transformation in global travel. The industry is no longer defined by the number of shopping bags filled with luxury goods, but by the memories created and the connections made during each trip. Retailers who can adapt to this new reality will be best positioned to thrive in the post-pandemic era of global tourism.
Disclaimer: The information in this article is based on publicly available reports and industry analyses. Retail trends and consumer behavior may vary, and the future of duty-free spending remains uncertain.
