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By Tony DeMasi, editor
mericans aren’t going anywhere for a while - anywhere overseas,
that is. Meanwhile, around the world, millions of people are planning
on coming to the U.S. in the near future. Why the mixed situation?
The U.S. Dollar is at a very low exchange rate.
Translation: Americans will get the most for the money by spending it here
at home, and international tourists will get the most for their money by
exchanging it for U.S. Dollars and spending it here. For you, the souvenir
and gift retailer, it’s a win-win situation. Take advantage of it while you can.
Congress isn’t expected to do anything about it now. By having the world
come to our shores and stores, it helps correct the trade deficit that is now at
a critical point. It also makes the demand for American-made products that
much greater.
Shopping continues to rank the highest on the list of activities overall for
international travelers while visiting the United States. In fact, 87 percent of
overseas and Mexican air travelers or 16.8 million shopped during their visit
to America’s shores in 2003. While shopping is the number one activity for
international travelers, they also want to explore the culture and ethnicity of
the place they are visiting, according to Taubman Centers, Inc., a leading
U.S. shopping center developer, and the United States Department of
Commerce.
The two organizations teamed up to study the correlation between shopping
and cultural/heritage tourism. The report compares and contrasts shoppers
and cultural shoppers to the United States from the top four international
markets between 2003 and 1997 and examines trip planning, travel
characteristics, travel behavior and expenditures.
Just-released findings show that among the top 24 regions/countries generating
travelers, the United Kingdom, Japan, Mexico (air only) and
Germany take the top four spots. Across those four markets, cultural shoppers
(those who both shop and participate in a cultural activity such as
attending a concert or visiting a national park or museum) report longer
stays of at least two more nights and higher on average spending levels than
general travelers and shoppers. Cultural shoppers also visit a greater number
of states and are more likely to be new-to-market travelers.
But don’t try to pigeonhole the international shopper. Cultural differences
and spending habits make each a unique market segment. For
instance, the United Kingdom represented 22 percent of total overseas
tourist traffic to the United States in 2003. It also generated more shoppers
(3.5 million) to the United States than any other market. That’s a 6 percent
increase in total British traffic and a 7 percent increase in British shopper
traffic over 1997.
Japan ranks as the second-largest shopper country to the United States.
Japan represents 18 percent of all overseas travelers to the United States.
Compared with the other three markets, the Japanese were the biggest shoppers
in proportion, with over 92 percent reporting shopping activity while in
the United States, followed by the United Kingdom with 89.4 percent.
The United Kingdom also led all other countries in producing cultural
shoppers to the tune of 1.3 million in 2003. That’s
more than double the number from runner-up
Germany and far outdistances other top markets:
Japan, France, and Mexico (air) travelers.
Some key facts about the top four countries sending
travelers to the United States:
- Of the countries studied, Germans reported the
longest length of stay with 17.8 days, and German
cultural shoppers reported 6 more days than ordinary
travelers. British visitors reported the nextlongest
length of stay (12.3 days) while Mexican
tourists stayed 9.1 days and the Japanese 8.8 days.
Both Mexican and Japanese cultural shoppers stayed
four more nights on average.
- While German visitors, especially German cultural
shoppers, spent the most on their trips to the
United States, explained by their longest trip
lengths, Japanese shoppers spent the most per day,
averaging $140 per visitor expenditure per day.
Mexican shoppers were next to the Japanese, with
$134 per day. Importantly, Mexican shoppers were
among the most frequent travelers to the United
States, having averaged 4.0 prior trips across the border
in the past 12 months.
- German visitors were more likely to use credit
cards (61 percent of those surveyed) to pay for their
expenditures than any other group surveyed. British
shoppers were the highest proportion to use traveler’s
checks (13 percent) as their trip payment method.
- Of the top four, the Japanese were more likely
to be first-time travelers to the United States. Thirtyone
percent of Japanese respondents were new-tomarket
tourists. This might explain why four out of
ten Japanese travelers (40%) were likely to purchase
organized travel packages (compared with 22 percent
of the British) and why more than five-out-of-ten (52
percent) Japanese travelers consulted a travel agent
to book their trip.
- Mexican shoppers were more apt to travel alone
(42.8 percent), only second to the German shoppers
segment (43.2 percent). British shoppers were most
likely to accompany a spouse (47.1 percent) or family
and/or relatives (37.5 percent) than any other
group surveyed.
- Three-out-of-ten British and Mexican visitors (32
percent) stayed in a private home during their visits,
compared with nine-out-of-ten Japanese tourists (93
percent) who used a hotel or motel for their lodging.
- Florida was the favorite state for British travelers
and British shoppers in 2003. But those travelers
interested in combining shopping with cultural
tourism picked New York as their top destination.
Hawaii was by far the most popular destination for
Japanese tourists, favored by more than 45 percent.
California was the number one tourist destination
for both Mexican shoppers and Mexican cultural
shoppers. Texas was the second most visited destination
for general Mexican shoppers, while New York
was more favored by Mexican cultural shoppers.
New York was the most popular destination for
German travelers, shoppers and cultural shoppers.
- The cultural shopper tends to travel more with friends and relatives.
- Cultural shoppers tend to be leisure travelers as opposed to being on business.
- U.K. cultural shoppers visit more destinations while within the USA.
- Cultural shoppers are more likely to utilize a taxi, bus, subway, and take a domestic flight while in the USA than casual shoppers.
- New York City is more likely to be the top choice of cultural shoppers, while leisure shoppers put Orlando, Florida, at the top of their list.
- Cultural shoppers spend slightly more per trip than the average shopper.
- The average British cultural shopper is a male (51%), 45 years old, and has a household income of over $93,000.
A Special Salute to Gap, Inc.
I congratulate Gap Inc. for the original and wonderful way it is handling a situation that could have been devastating to its many employees. Many Gap
stores across the country are undergoing major renovations. Instead of putting all employees on unemployment, Gap has offered to pay them full wages
and benefits if they volunteer at local non profits. Habitat for Humanity, a nonprofit, nondenominational Christian housing organization that builds
shelters for people worldwide, is among the organizations at which Gap employees can work.
Gap’s general charitable outreach efforts include a program allowing headquarters employees five hours a month of paid time to volunteer in the community and another that contributes $150 to a nonprofit for every 15 hours an employee volunteers there.
Gap employees logged 22,000 hours of company paid time in 2003.
Bravo, Gap!
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