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and Westfield London in White City.
Such developments reflect that today’s perception of luxury
is very much more fluid than it ever used to be. Contemporary
symbols of wealth are universal, and people with sufficient
resources are travelling the world to acquire them.
London, Paris and New York, with perhaps to a lesser
extent Milan and Tokyo, are the global destinations of
choice for luxury retail. Noticeably within that small but
exclusive group, London is significantly growing its appeal.
London makes a compelling offer for top-end retail-
centred tourism. It is comparatively compact in terms
of its retail footprint and has all the major brands easily
accessible. There’s a good choice of five star hotels close
by, and visitors have access to an extraordinary array of
first class dining and entertainments. The effect for those
with deep pockets is that luxury in London can be a fully
integrated city experience.
Of all non-EU long-haul
arrivals into Europe,
London is the favourite
destination with a 12%
share. This compares
to Paris with 9%, Rome
7% and Barcelona 5%
Top tax-free
shopping
tourists by
volume by
nationality
in London’s
West End
31%
CHINA
6%
INDIA
7%
USA
5%
HONG KONG
Top tax-free
shopping
tourists by
average
transaction
value in
London’s
West End
£1,478
CHINA
£1,205
UAE
£1,069
HONG KONG
£1,047
THAILAND
6% from the Middle East
(20% YoY increase)
39% from Asia Pacific
(14% YoY increase)
50% from the Americas
(21% YoY increase)
5% from Africa
(15% YoY increase)
Arrivals from China into London
are up by 35% YoY. This compares
to a 15% YoY increase for Europe
as a whole
1
2
3 4
Of course, London and the UK in general have an extra
advantage at the moment in that the sterling exchange
rate is very attractive for tourists.
Everything adds up to making luxury retailing in London
a viable business proposition. Luxury is well established
as part of the city’s core identity and contributes greatly
to the appeal for high net worth tourists. Also, we have to
remember that there is already a very strong home market
for luxury goods.
In terms of real estate, there are various opportunities
to buy and rent in the marketplace that offer routes into
London’s luxury’s business market. However, the best
store opportunities can sometimes be hard to come by,
particularly in the prime Mayfair and Belgravia locations.
Therefore, having a view to emerging luxury clusters and
being informed on new models and trends is as important
as ever.
London
makes a
compelling
offer for top-
end retail-
centred
tourism
Global tourism into London
CUSHMAN & WAKEFIELD
16
TOURISM