Shopping as a Driver for Tourism
by Carol Southall
Oct 2009
Browse this article:
Shopping has traditionally been considered a subsidiary activity to travel – people shop when travelling, to buy souvenirs and presents, but it has not been the primary purpose. However, in recent years, with the relative decreasing cost of travel, this concept has changed. Retail tourism has become a popular leisure pursuit and statistics indicate that this is likely to be a continuing trend. This article looks at the rise in retail tourism and provides advice to destinations on how to exploit this growing market.
There are several factors that have led to the recognition of retail tourism as a concept.
Retail therapy has long been an excuse proffered by individuals as justification for errant spending habits/sprees in what are often difficult economic circumstances. The idea of shopping as a therapeutic activity may be disputed by some, but there is evidence [1] to suggest that this is the case for some individuals. Just as a holiday may be deemed therapeutic for those engaged in busy and stressful lifestyles, so shopping may, as an activity pursued as part of that holiday, also be deemed as therapy.
The connection between shopping and tourism also becomes clear when the social needs fulfilment aspect of the tourism product [2] is considered. This relates to the need people have to be around others – the basic social need for human contact. Shopping is often described as a form of escapism and therapy but ultimately ‘…our urge to shop is inexorably tied to a desire to connect with others’ [3]. It may be argued that holiday-taking is not only about escapism, but also a way of satisfying our need to connect with others. Consequently, there is a clear correlation between shopping and tourism that means both are inexorably linked.
It is becoming increasingly common for shopping to be a primary reason for people to undertake travel. In fact shopping is an influential motive for day trips, holidays and business trips [4]. There is a wealth of literature and research identifying clear links between tourism and shopping. Indeed, C M Law [5] says,
'…any analysis of the behaviour of tourists will show that a significant amount of time and money is spent on shopping.'
Many people, when prompted, would be able to identify destinations synonymous with shopping as a holiday activity in its own right…New York, Hong Kong, Milan, Dubai. The list is endless and includes numerous destinations that, at one time, would have been inconceivable as shopping destinations simply because of distance and inaccessibility. As the world has become more accessible and affordable, so the list of destinations has expanded.
One clear example of the growth of retail tourism is in Dubai, which holds a ‘Dubai Summer Surprises’ shopping festival for ten weeks each year. This festival has grown from attracting 600,000 visitors in 1998 to over two million people in 2009.
Closer to home Oxford Street is London’s most popular tourist attraction with around nine million overseas visitors a year, around two thirds of all foreign tourists who come to the capital. Meanwhile there has been a growth in out-of-town locations such as Bicester Village outlet shopping centre that attracts some three million customers per annum, and is the number one shopping destination outside London for Japanese tourists.
Any consideration of retail tourism should also recognise the positive economic impact it has on associated sectors including food, accommodation and transport. Indeed it is argued that the overall economic effect of shopping tourism is more than double the shopping expenditure when spending on food, accommodation and transport is taken into account.
The development of shopping malls in the United States dates back to the 1960s but it was only in the 1980s that malls began to be developed in the UK. Since then there has been a proliferation of large, out-of-town complexes offering a range of attractions under one roof with shopping at their core.
It was the Sunday Trading Act (1994)[6] that legalised shopping in Britain on Sundays, changing the retail sector and arguably, to some extent, the tourism industry, forever. According to Middleton [7], the Act:
'...opened the floodgates for the development of retail malls, discount villages and speciality shopping centres that determined the shape of British retail developments in the 1990s.'
As part of the economic regeneration of industrial cities such as Newcastle-upon-Tyne, Sheffield and Manchester, massive new visitor attractions were created including Gateshead Metro Centre, Meadowhall, and Trafford Centre, ‘thus becoming the new resorts of the twenty-first century.’
These new attractions provided everything for the visitor under one roof, including cinemas, restaurants, bars, crèche facilities for children and other entertainment centres. In addition, some also had hotels located nearby, thus catering specifically for those wishing to make the most of the shopping experience. Such ‘resorts’ have been referred to as ‘…an integral aspect of modern tourism.’ [8]
Interestingly, prior to the Sunday Trading Act (1994), Sunday had traditionally been a popular day for visiting other attractions, specifically heritage attractions. These new retail centres, open on Sundays, provided competition for other attractions and forced some of them to close.
Under the Sunday Trading Act (1994) there are a number of shops that are exempt from its provisions, including shops at airports and motorway service areas [9].
Thus shopping facilities at these outlets are able to open outside of the hours stipulated by legislation governing Sunday trading. What is clear is that wherever and whenever people travel they are likely to participate in shopping activity. Indeed, for commercial reasons, people are actively encouraged to shop as they travel.
It is important to note that there is considerable debate, both within and external to the tourism industry, that focuses on the development of out-of-town retail developments, and their impact upon town and city centre shopping. It is not within the remit of this article to discuss such issues in depth, but, from a tourism perspective, there can be no doubt that such developments have changed not only the way in which people use leisure time, but also the time they have available to pursue alternative leisure activities such as shopping combined with other entertainment offered within such attractions.
The leisure destination concept, with retail at its core, for many people provides a ‘one-stop shop’ for all their leisure needs. The sheer numbers attracted by such complexes give an indication of the importance of retail tourism enhanced by entertainment facilities. Figure 1 shows visitor numbers for retail attractions compared to more traditional UK visitor attractions.
| ATTRACTION | VISITOR NUMBERS | ATTRACTION [10] | VISITOR NUMBERS |
| Trafford Centre [11] | 30 million | Chester Zoo | 1.25 million |
| Meadowhall [12] | 30 million | British Museum | 5.9 million |
| Bluewater [13] | 27 million | Kew Gardens | 1.3 million |
| | | Cadbury World | 0.5 million |
There are a number of clear reasons for the success of these retail attractions [14] which include the following:
- large-scale complexes which can attract up to 35 million visits annually
- open for more than 15 hours per day, 363 days a year
- undercover (a big advantage in a destination where weather is unreliable)
- free at point of entry
- multiple product base – shops, restaurants and bars, entertainment facilities
- safe, clean, air-conditioned environment.
The sale of speciality goods such as arts and crafts, unusual clothing and household articles ‘…has been categorised as a distinctive market sector’ known as ‘speciality’ retailing [15]. Tourists have, for a long time, sought out the unusual, and shopping for ‘different’ items is a popular holiday activity.
The concept of the ‘festival marketplace’, combining speciality shopping, eating, drinking and entertainment, is one that fulfils the tourists’ search for the unusual. Festival marketplaces are now found in popular tourist destinations and include the following examples.
- London (Covent Garden)
- Liverpool (Albert Dock)
- Cape Town (Victoria and Albert Waterfront)
- Boston (Faneuil Hall-Quincy Market)
- Sydney (Darling Harbour)
These festival marketplaces are enhanced by heritage, adding to the appeal. They are aesthetically pleasing, often redeveloped, and in many cases built in formerly derelict waterfront areas.
It is argued [16] that such attractions, when developed as part of a wider tourism offering, can enhance a destination’s tourism potential, but are unlikely to be a sufficient pull factor in their own right. What is clear is that few destinations can rely solely on their heritage to attract tourists. A diverse product offering involving a range of attractions, including good shopping facilities, is likely to encourage interest, generate visitors and prompt repeat visits [17].
An internet search for shopping destinations and shopping holidays identifies endless possibilities for a short break, endorsing the growing popularity of retail tourism. From the fashion capitals of Paris, Milan and London to the traditional souks of Marrakech and the Christmas markets of Germany, there is something for everyone.
In recent years, shopping festivals have provided an exciting alternative to the traditional UK January sales. A recent article [18] on the Dubai Summer Surprises (DSS), indicated that,
'Shopping festivals are playing a major role in developing the region’s retail propelled tourism and reducing economic dependence on oil…'
The 10-week festival is one of the biggest in the Middle East. It takes place every year from mid-June and attracts more than 1.5 million people.
Shopping festivals are also a big draw in other destinations worldwide such as The Thailand Grand Sale which takes place between June and August in main cities including Bangkok, Phuket and Chiang Mai; and The Singapore Shopping Festival which takes place in Singapore between May and July.
According to surveys the price of goods is one of the key attractions for a destination to be considered a successful shopping destination. A weak dollar in recent years has led to increased spending on travel to the USA and shopping purchases whilst there [19]. The traditional shopping destination of New York [20] has benefited from the exchange rate, as have numerous other popular US shopping destinations.
However, ‘If the customers’ country of origin and destination country do not have the same currency (or fixed exchange rates), then the price level fluctuates, which shopping tourists gauge as a risk and can therefore lead to adverse effects’ [21].
Clothing and shoes rank amongst the most important items for purchase by retail tourists, and destinations selling quality, branded items in this category will often fare better than others in terms of increased inbound visitor numbers for the purpose of shopping.
‘The potential for shopping to develop into a tourism resource depends on the quality and attractiveness of the environment involved, rather than on the supply of goods’ [22], states Turner and Reisinger and nowhere is this clearer than in resort-style shopping complexes with their integral entertainment and gastronomic offerings, such as the Trafford Centre, Manchester.
Friedrich identified a number of factors that are vital [23] for successful retail tourism, as follows:
- general conditions – stability and destination security
- type and extent of the offer – a variety of retailers including internationally renowned brands
- price level of goods
- accessibility in terms of proximity to main transport hubs or destinations
- infrastructure in terms of its contribution to a destination’s attractiveness
- profile and marketing – collaboration between stakeholders to market a destination’s USP (unique selling point).
Research carried out by VisitBritain into activities undertaken by visitors from overseas to the UK [24] indicates that 67% engage in shopping activity during their stay. This figure varies from region to region, for example seven in ten visitors to London participate in shopping whereas in the Midlands and Wales this figure is closer to five in ten. For many UK regions, shopping is the main activity for overseas visitors, followed by visiting monuments, castles, churches and pubs.
From a UK perspective, VisitBritain has identified shopping as being a key motivator for specific market segments from the following European countries. More information can be gleaned from VisitBritain's Market and Trade Profiles. [25].
- Belgium
- Denmark
- Italy
- Norway
- Netherlands
- Portugal
- Russia
- Spain
Interestingly, shopping is not considered a key motivator for the majority of key markets in Central and Eastern Europe, with the exception of Russia.
A particular growth segment in international travel is the 55+ age group. It represents a key market for city and event tourism and, therefore, shopping tourism. In addition, the proliferation of low-cost carriers such as Ryanair and EasyJet also represent ‘…an additional market segment with a high growth potential, especially in times of economic weakness’ [26].
Whilst the importance of retail tourism and its’ economic contribution is recognised, it is less clear how an understanding of consumer shopping behaviour can contribute to a continued growth in retail tourism.
Increased understanding can obviously assist with planning and marketing. However, it is also important to recognise that the purchasing behaviour of a tourist is different from ordinary purchasing behaviour. Holiday travel, by its very nature, is a break from normal routine.
A study [27] of tourists’ shopping behaviour identified that the type of trip taken, age and gender influenced a tourists’ participation in different categories of shopping activity.
For example, female travellers are more likely to shop and browse for clothes, shoes and jewellery. Conversely, travellers aged 51-60 are most likely to shop and browse in all types of shops with the exception of clothes, shoes and jewellery. In terms of trip typology it is suggested that tourists favouring active outdoor pursuits are mainly interested in shopping and browsing for gourmet foods, whilst people favouring urban entertainment are more interested in a variety of goods.
Destinations that recognise and cater for differences in tourists’ shopping behaviour, perhaps by offering and marketing shopping venues that cater for tourists’ expectations and desires, will, it is argued, reap benefits in terms of increased visitor numbers and repeat business.
There are a number of success factors for retail tourism.
- Collaboration between retailers and tourism stakeholders such as accommodation providers, restaurants, transport providers, local councils and tourist boards should not be underestimated [28]. An attractive complementary offer involving retail outlets, leisure facilities, local or regional gastronomy and tourist highlights, such as attractions, enhance the product offering.
- Awareness-raising within the retail sector of the potential benefits of retail tourism could be carried out by local chambers of commerce informing members of the extent to which revenue can be generated by tourists, both domestic and international.
- Understanding tourists’ purchasing behaviour allows destinations to tailor their product offering to suit their key target markets. It is therefore essential that stakeholders identify key market segments and respond to specific purchasing behaviour.
- It is also important to consider the attractiveness of the shopping environment, because aesthetic appeal is a key factor in maintaining tourism potential.
A study of shopping tourism [29] in Germany also makes a number of interesting observations.
- Very few traditional retailers regard ‘shopping tourism’ as an opportunity and it is only shopping centres and factory outlets that tend to actively target holiday shoppers.
- By the year 2010 the sales volume generated by foreign tourists coming to shop in Germany is expected to have increased by at least 40% from 2004.
- Where there is cooperation between the retail trade and tourism associations there are considerable benefits in terms of increased trade and subsequently income.
- Competitive opening hours, ie all weekend when tourists are often abundant, leads to increased ability to compete and stop trans-border purchasing power exodus. (Note, the study was conducted in Germany, but this could be applied to competing UK destinations.)
- Foreign language skills, packaging and shipment services and credit card acceptance are all factors that contribute to the success of the retail exchange.
It is clear that shopping is an integral part of tourism, and has become a tourism activity in its own right. Whether retailing is added to attractions – to enhance the visitor experience or provide extra income – or whether a retail outlet is developed purely to attract visitors, it is irrefutable that shopping is part of a holiday experience.
An understanding of tourists’ shopping behaviour is vital if destination stakeholders are to satisfy their needs and expectations, thereby ensuring customer satisfaction.
And finally, the economic importance of retail tourism cannot be underestimated. Unless shopping is incorporated within a destination’s tourism offering, through marketing and stakeholder collaboration, it is unlikely that the growth potential will be achieved.
- Moneywise. Are you in need of some retail therapy?http://www.moneywise.co.uk/everyday-money/manage-money/article/2007/12/11/are-you-need-some-retail-therapy
- Pearce, P.L. Tourist Behaviour: Themes and Conceptual Schemes (2005). Clevedon: Channel View Publications
- Cotton Incorporated. Retail Therapy – When the Going Gets Tough, The Tough Go Shopping. http://www.cottoninc.com/lsmarticles/?articleID=121
- Friedrich, W. Traveling to a Shopping Adventure. Trends and Issues in Global Tourism 2007. Conrady, R. & Buck, M. (eds) Berlin: Springer.
- Law, C.M. Urban Tourism: The Visitor Economy and the Growth of Large Cities (2002) (2nd Ed). London: Continuum.
- The Office of Public Sector Information.
http://www.opsi.gov.uk/acts/acts1994/Ukpga_19940020_en_1.htm
- Middleton, V.T.C. British Tourism: The Remarkable Story of Growth (2005). Oxford: Butterworth Heinemann.
- Middleton (1999) in Middleton, V.T.C. British Tourism: The Remarkable Story of Growth (2005). Oxford: Butterworth Heinemann.
- Department for Business, Innovation and Skills Factsheet
http://www.berr.gov.uk/whatwedo/consumers/fact-sheets/page38554.html
- VisitEngland. Survey of Visits to Visitor Attractions.. www.enjoyengland.com/corporate (VisitEngland - Research and Insights)
- Trafford Centre. http://www.traffordcentre.co.uk/information/pack/facts
- Enjoy England. http://www.ntopsearch.com/VisitEngland/en-GB/Details.aspx?contentID=534076
- Bluewater. http://www.bluewater.co.uk/content/ab_pressoffice
- Lockwood, A. and Medlik, S. Tourism and Hospitality in the 21st Century (2001). Oxford: Butterworth-Heinemann.
- Law, C.M. Urban Tourism: The Visitor Economy and the Growth of Large Cities (2002) (2nd Ed). London: Continuum.
- Law, C.M. Urban Tourism: The Visitor Economy and the Growth of Large Cities (2002) (2nd Ed). London: Continuum.
- Leslie, D. Urban Regeneration and Glasgow’s Galleries with Particular Reference to the Burrell Collection in Richards, G. (Ed) Cultural Attractions and European Tourism (2001). Wallingford: CABI.
- Gulf News. Dubai shopping festivals promote retail tourism.http://archive.gulfnews.com/articles/06/06/17/10047377.html
- Washington Post. June 2008. Weak Dollar Lets Foreign Tourists Spend Big in DC.http://www.washingtonpost.com/wp-dyn/content/article/2008/06/15/AR2008061501339.html
- BBC. Nov 2007. Happy UK Shoppers Hit US Stores. http://news.bbc.co.uk/1/hi/business/7102428.stm
- Friedrich, W. Traveling to a Shopping Adventure in Trends and Issues in Global Tourism 2007. Conrady, R. & Buck, M. (eds) Berlin: Springer.
- Turner, L.W. and Reisinger, Y. Shopping satisfaction for domestic tourists. Journal of Retailing and Conusmer Services (2001), 8, pp.15-27.
- Friedrich, W. Traveling to a Shopping Adventure in Trends and Issues in Global Tourism 2007. Conrady, R. & Buck, M. (eds) Berlin: Springer.
- Office for National Statistics' International Passenger Survey. VisitBritain (2009) http://www.visitbritain.org/Images/Activities%20by%20Nation%20and%20Region_tcm139-167960.pdf
- VisitBritain. See relevant Market and Trade Profiles. http://www.visitbritain.org/insightsandstatistics/publications/index.aspx
- Friedrich, W. Traveling to a Shopping Adventure in Trends and Issues in Global Tourism 2007. Conrady, R. & Buck, M. (eds) Berlin: Springer
- Yoon-Jung Oh, J., Cheng, C., Lehto, X.Y. and O’Leary, J. Predictors of tourists’ shopping behaviour: Examination of socio-demographic characteristics and trip typologies. Journal of Vacation Marketing (2004), 10(4), pp.308-319.
- Morgan, N., Pritchard, A. and Pride, R. (Eds) Destination Branding: Creating the Unique Destination Proposition (2004) (2nd Ed). Oxford: Butterworth-Heinemann.
- Friedrich, W. Traveling to a Shopping Adventure in Trends and Issues in Global Tourism 2007. Conrady, R. & Buck, M. (eds) Berlin: Springer.
Carol Southall studied tourism and languages in London in the late 1980s. She was a Tour Guide and Contracts Manager for an international coach tour operator before taking a year out to travel around the world. In the mid-1990s Carol began a teaching career, initially in further, and later in higher education, alongside which she continued to plan and escort tours to destinations including Singapore, Australia, USA, Iceland and South Africa. Carol holds a Masters Degree in Tourism Management and a recently attained a PCV licence. Research interests primarily focus on tourism quality management.