In the last twenty-four months alone, elite tourists have spent an average of 40,000 euros in the Spanish capital. This type of consumer represents only 1% of tourists, but generates up to 18% of sales.
(Sales from tourism are on the rise. Between January and May, revenue from shopping tourism in Madrid recorded a 100% year-on-year increase, making it the third city in Europe that is recovering the most since the outbreak of the pandemic. The Spanish capital is behind only Paris, which has increased its sales from shopping tourism by 335%, and Milan, which has recorded an increase of 109%.
Between March 2020, just as the pandemic broke out in Spain, and April 2021, 37% of sales from shopping tourism in Madrid were made by millennial and Generation Z shoppers, with an average spend of €1,150. The average spend of tourists in the same period was 1,332 euros.
According to the report High Impact Tourism: a strong boost for Europe, prepared by the consultancy Bain&Company for the European Creative and Cultural Industries Alliance (Eccia), the recovery of shopping tourism sales in Madrid was driven by tourists from the Persian Gulf, with an increase of 403%.
Millennial and Generation Z tourists made purchases worth an average of 1,150 euros.
In addition, the increase in sales in the Madrid capital was also driven by travellers from Southeast Asia, with 153% more than in the same period of the previous year, spending an average of 1,070 euros per purchase, and those from the US market.
In the last twenty-four months, the elite tourist has spent at least 40,000 euros in the capital. Although this type of consumer only represents 1% of the total number of tourists to the city, they generate up to 18% of sales.
“Although Madrid’s figures are encouraging, the city needs to further improve its positioning,” the report explains. “It is necessary to reinforce the strategy in markets such as the United States, Canada, the Persian Gulf, Africa, Southeast Asia and the United Kingdom,” says the study.
High-end tourism already generates 2% of Spain’s Gross Domestic Product (GDP)
High-end tourism already accounts for 2% of Spain’s Gross Domestic Product (GDP), compared to the European average of 0.9%. According to the report, the sector could triple revenues over the next decade to 520 billion euros.
In total, high-end tourism generates sales of 25 billion euros per year in Spain, representing 26% of total tourism revenues. In the rest of Europe, this type of tourism generates between 130 billion euros and 170 billion euros per year.
However, the average expenditure of high-end tourists in Spain is lower than in the rest of Europe. In Spain, a tourist with high purchasing power spends an average of 860 euros per day, while in Germany he spends 1,000 euros and in France around 2,000 euros. Fifty per cent of luxury tourists’ spending goes on shopping, while 26 per cent goes on accommodation and another 20 per cent on restaurants.