More effort needed to woo Chinese tourists here, says retail consultant

KUALA LUMPUR (March 8): Malaysia should try harder to woo Chinese tourists to shop here, as they are among the world’s biggest spenders and make up the largest consumer market of luxury goods, said Savills (Malaysia) Sdn Bhd managing director Allan Soo.

According to a Savills report published last year, China and United Arab Emirates nationals are the world’s top spenders, with their average transaction worth over £1,000 (US$1,500) (RM5,857).

However, the Malaysia Tourism Board data showed that China tourist arrivals have been decreasing for the past two years since 2013. Last year, the China tourist arrivals totalled 1.51 million, as compared to 1.61 million and 1.79 million in 2014 and 2013, respectively.

“For the retail industry to continue to grow, besides depending on local consumption, we also need tourist spending to drive the growth. Effort needs to be put in by all industry players related to the tourism sector to encourage China tourists to Malaysia,” he said at the Malaysia Retail Conference which was organised by Savills Malaysia.

Soo also said the ringgit depreciation could be an opportunity for tourism development, and Malaysia shopping mall operators may want to team up with tour agencies to encourage them to bring tourists to the malls during their visit to Malaysia.

“At the same time, local shopping malls should also improve their facilities, such as building tour bus stations, and bringing in more international brands to attract tourists’ attention,” he added. 

On a more global scale, Savills Hong Kong senior director of research and consultancy Simon Smith said the number of inbound tourists to Japan has been skyrocketing following low airfare promotions, which in turn is boosting the hospitality and retail sectors.

He added that this means airline operators, retailers and hotel operators should come together to enhance the multiplier effect of tourism on the economy.

According to the Japan National Tourism Organisation (JNTO) data, as at July 2015, the total number of international tourists who visited Japan totalled 11.1 million, a 47% increase from the same period in 2014.

“The increase in inbound visitors has been fuelled by the soft yen and various government initiatives such as airport capacity expansion, the growth of low-cost carriers (LCCs), the relaxation of visa requirements and new duty free shops,” said Smith.

The majority of tourists come from Asia, particularly China, Korea and Taiwan. The visitors from these three countries totalled 2.8 million.

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