London and Paris compete to woo wealthy Chinese tourists

London and Paris have been rivals for as long as anyone can remember. But there is a new front in the age-old conflict between western Europe's richest and chicest capitals: the hearts, minds and - most importantly - the wallets of Chinese tourists.

The battle is fought out in a flurry of Chanel handbags and Burberry gloves - and the winner gains something much more valuable than mere prestige.

French and British luxury firms are putting aside any concerns they have about the perceived lack of sophistication of Chinese tourists, not least because they account for "a third of their total sales in Europe", according to Yuval Atsmon, a partner at consultancy McKinsey in London, who previously worked in China.

The main target for both capitals is the 11 per cent of Chinese tourists who, according to recent research by Hurun Report and ILTM Asia, take at least three overseas trips per year and spend more than US$10,000 on each holiday - excluding the cost of flights.

Chinese spending in the West End of London was up 50 per cent in May last year on the year before, according to Jones Lang LaSalle research. At London's Heathrow Airport, Chinese shoppers account for less than 1 per cent of total traffic, yet are responsible for nearly a quarter of all sales of luxury goods, according to UK government data.

The British capital has long experience of rolling out the red carper to mega-rich foreigners - making it a favourite for everyone from the oil-rich Arabs of the 1970s to the Russian oligarchs of more modern times.