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Feature Article, May 2005
Shopping For Culture Vultures
New study reveals opportunities to package and promote U.S. cultural and heritage tourism with shopping.
Rosemary Rice McCormick
People who love to travel, love to shop. They also love to explore historic homes, catch the latest Broadway musical or hike through a forest of towering redwood trees when visiting the United States. Global travelers want to give more than their credit cards a workout. They want to expand their minds by delving into the culture and ethnicity of the places they are visiting.
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Taubman's International Plaza in Tampa, Florida, is one center that has a cultural tourism program. One package offers visitors shopping at the center, as well as an exhibit at the Florida International Museum on the life of Princess Diana.
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Cultural heritage tourism shoppers in the U.S. are overall more affluent, stay longer and spend more while contributing to global understanding through cultural exchange and commerce. It's a win/win partnership to package shopping with cultural and heritage tourism. This is the conclusion of Taubman Centers, Inc. and the U.S. Department of Commerce/Office of Travel and Tourism Industries (OTTI). The two organizations recently collaborated and released a study examining the correlation between shopping and cultural/heritage tourism. The report also looked at international travelers and their shopping habits as they have evolved since 1997. The source for this study was data compiled by OTTI from in-flight surveys completed by international travelers as they exit the U.S.
Shopping continues to rank the highest on the list of activities overall for international travelers while visiting the United States. Nine out of 10 (87 percent) of overseas and Mexican air travelers, or 16.8 million visitors, shopped during their visits to the U.S. in 2003, spending $5.8 billion on gifts and souvenirs. That's an average of $348 per person, per trip. These conservative figures do not include spending for non-gift related apparel, accessories and household items, categories that are not tracked by the OTTI in-flight survey.
The United Kingdom generated more shoppers (3.5 million) to the U.S. than any other overseas market. The United Kingdom took the lead in 2002 when it surpassed Japan, which held the Number 1 spot from 1996 until 2001. Other countries atop the list are Mexico (air only), Germany, France, Korea, Australia, Italy, Brazil, Netherlands, Venezuela and India. Not surprisingly, the United Kingdom also led all other countries in producing cultural shoppers to the tune of 1.3 million. That's twice the number from runner-up Germany and far out-distances other top markets: Japan, France, and Mexico (air).
Recently 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) are 33 percent of the total and 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.
The top destinations in the U.S. for international shopping tourists:
1. Florida — 23 percent
2. New York — 23 percent
3. California — 22 percent
4. Hawaii — 13 percent
5. Nevada — 8 percent
The top states for cultural heritage shopping tourists:
1. New York — 35 percent
2. California — 28 percent
3. Florida — 15 percent
4. Nevada — 13 percent
5. Hawaii — 10 percent
Cultural heritage shoppers gravitate to New York, California and Nevada in greater percentages than to Florida and Hawaii, compared with general shoppers, suggesting that destinations will benefit by further expanding and marketing their cultural/shopping tourism attractions to cater to this lucrative market segment.
What turns an ordinary shopper into a cultural shopper? The study shows they are far more likely to carve out time for art galleries, museums, concerts, cultural or historic sites, or national parks, as well as shopping. Cultural shoppers tend to visit more destinations while within the U.S., stay longer and are more likely to be leisure travelers.
Not all international shopper tourists are the same and care must be taken to appropriately identify and reflect key market variables. The study does an excellent job of profiling the unique characteristics of the top markets. For example, 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.
British cultural shoppers markedly differ from the average UK shopper. Findings show:
•The cultural shopper tends to travel more with friends and relatives.
•Cultural shoppers tend to be leisure travelers as opposed to being on business.
•UK cultural shoppers visit more destinations while within the U.S.
•Cultural shoppers are more likely to utilize a taxi, bus and subway, as well as take a domestic flight while in the U.S. than casual shoppers.
•New York City is more likely to be the top choice of cultural shoppers, while leisure traveler 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 percent), 45 years old, and has a household income of over $93,000.
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 to 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. Also, the largest portion of spending in the U.S. by Japanese and Mexican shoppers went to buying gifts and souvenirs, 30 percent or more of their total spending in the U.S.
“It's clear that international travelers play a significant role in the American retail marketplace,” says Karen MacDonald, director of communications at Taubman. “This study illustrates the value of combining both shopping and cultural tourism to create a more well rounded travel experience for the international travelers.”
Taubman Centers has developed cultural shopping tourism packages at Cherry Creek in Denver and International Plaza Tampa, as well as other markets, to cross sell shopping and cultural experiences.
Rosemary Rice McCormick is the president of McCormick Marketing, a Napa, California-based marketing consulting firm specializing in retail and tourism. She also serves as president of the Shop America Alliance, representing the premier shopping tourism destinations in North America. She can be reached at MMinNapa@aol.com
Sample Cultural Tourism Package
(Taubman Centers)
International Plaza & Princess Diana Exhibit
Tampa, Florida
International Plaza and Bay Street has partnered with the Florida International Museum in St. Petersburg (a Smithsonian Institution Affiliate) for the “Diana: A Celebration” exhibit.
This exhibit — direct from the Althorp Estate in England, the ancestral home of the Spencer family — celebrates the life and work of Diana, Princess of Wales. On display are rare home movies filmed by Diana's father, childhood letters, treasured personal possessions and 28 stunning designer dresses. Also featured: Diana's spectacular royal wedding gown, original family jewels, artifacts, paintings and more. The exhibit is a rare and intimate glimpse into the life of the “people's princess.”
Visitors to International Plaza may purchase discounted tickets and when doing so will receive a Passport to Savings card valid for 30 days. The Passport is normally valid for 1 day only.
Adult price is $17.50 (savings of $2.50), Senior/Military price is $14.50 (save $1) and children's tickets are $8 (save $2). Tickets may be purchased at the International Plaza Concierge desk (located on the lower level in Grand Court). |
KEY FACTS ON INTERNATIONAL SHOPPER TOURISM
• 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 next-longest 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 4 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. Thirty-one percent of Japanese respondents were new-to-market tourists. This might explain why four out of 10 Japanese travelers (40 percent) were likely to purchase organized travel packages (compared to 22 percent of the British) and why more than five out of 10 (52 percent) of 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 10 British and Mexican visitors (32 percent) stayed in a private home during their visits, compared to nine out of 10 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 1 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. |
WHERE TO FIND MORE INFORMATION ON SHOPPING/CULTURAL TOURISM
The U.S. Department of Commerce and Taubman Centers have published data on the top 11 markets to the United States from the 2003 International Air Traveler Survey, providing an in-depth profile of the shoppers and cultural shoppers to the United States.
The executive summary report is available free of charge online at www.tinet.ita.doc.gov. The complete 105-page report including the top four countries (UK, Japan, Germany, Mexico/air) is available for purchase at $79 per copy from U.S. Department of Commerce/OTTI. |
HOW TO LEARN MORE
Shop America will produce the U.S. Cultural & Heritage Tourism Summit, an industry milestone event presented by the U.S. Department of Commerce and the President's Committee on the Arts and the Humanities, October 6-8, in Washington D.C.
Visit www.uscht.com for details. |
©2005 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.
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