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Chinese tourists to spend $4.1b...

Chinese tourists to spend $4.1bn in Australia in 2016

It's expected that Chinese tourists will spend around $4.1 billion (£2.1 billion) in Australia this year, according to a report from Cross Border Management.

This is largely due to a growing middle class in China and delete their appetite for high-quality goods and clothes, which drives their initiative to spend more money.

Entitled Golden Dragons: The Spending Habits of Chinese Tourists, the document highlighted that there was a lack of engagement from Australian retailers towards the Chinese market during winter months. The report has said that this led to a missed revenue opportunity but it's forecast that it shouldn't affect the tourism spending figures from China overall.

The authors of the document wrote: "Surveys of Chinese shoppers show they want (language) signs, the company of other Chinese and someone who can help them while they're shopping.

"Although the value of Chinese New Year has generally been recognised and Chinese shoppers get swept up in the normal Christmas promotions, little attention has been paid to Chinese tourists visiting during the winter months."

One of the biggest firms that helps Australian companies sell their products to Chinese consumers is CBM. Commenting on the forecast, it noted how it is important to capitalise on the school holidays between July and August, as this is the second-biggest time for spending from this market.

CBM has commented that it's expecting $700 million to be spent by Chinese tourists in Australia during this time.

On average, the standard middle-class traveller from China spent nearly $2,500 each last year alone thanks to being affluent enough to travel. Similarly, the vast majority of people from this country have jobs that offer paid holiday time.

Particularly high spenders within this group are defined as having an average spend of $330 per day and are likely to part with at least $4,200 during the entirety of their trip.

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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