Europe’s luxury sector looking forward to the return of big-spending Chinese tourists

The European luxury sector is welcoming the end of pandemic lockdowns in China, as the return of big-spending Chinese tourists could sustain further growth.

Before the pandemic, Chinese tourists visiting Europe were a major source of sales for luxury houses.

The Chinese accounted for “a third of luxury purchases in the world and two-thirds of those purchases were made outside China”, said Joelle de Montgolfier, head of the luxury division at management consulting firm Bain and Company.

Their return has led RBC to revise up its growth forecast for the sector this year to 11 per cent, from 7 per cent previously.

“China reopening is one of the key ‘mega-themes’ for the luxury sector in 2023,” RBC Bank said in a recent note to clients.