China’s growing disposable incomes are helping to drive more spending on luxury abroad to the benefit of hard-pressed regions such as Europe, a new report shows.

The World Travel Market Global Travel Trends Report 2012, released earlier this week and conducted by research company Euromonitor said European shopping destinations are increasingly relying on tourism to boost their economies. A a result, they battle for China’s spending power and love for luxury, leaving many high-end retail and hotel brands to reap the rewards.

Chinese tourists are proving to be some of the biggest spenders, reserving one third of their holiday budget for shopping, according to the European Travel Commission.

“The fast-growing affluent and middle classes of BRIC countries can find a wider selection of their favourite foreign brands and cheaper prices in Europe due to high import taxes back home,” the report said.

Inbound

Inbound tourism from BRIC nations is expected to record the sharpest growth in Europe, registering an annual growth rate of 5 to 10 per cent over 2012-2016. Shopping is forecast to be the main growth driver in these markets, together with art tourism, according the report.

Paris proved to be the most popular shopping destination, with cities like London, Frankfurt, Milan and Madrid following closely. In order to increase their appeal to tourist shoppers, retail villages and large department stores in these cities have recruited staff speaking BRIC languages, and offer extensive payment options, including domestic credit cards from these countries, said the report.

Other efforts to win business from the moneyed Mainlanders includes the development of department store mobile apps in Mandarin, and close collaboration with tour operators in order to be included in their itineraries.

At Louis Vuitton Paris for example, 95 per cent of Chinese visitors are on organised tours, said Euromonitor. “Most Chinese tourists consider shopping for luxury goods the main purpose of a trip to France,” said Xiao Qianhui, general manager, Spring International Travel Agency, Shanghai, China.

According to Euromonitor, China’s disposable income has increased from $2.6 trillion in 2008 to $4.5 trillion in 2012.