The era of Chinese tourists "splurge" on shopping is over.

READ FULL ARTICLE ON VIETNAM.VN

By ZNews

Published on January 14, 2026

China's outbound tourism industry quickly recovered from the Covid-19 pandemic, but the era of duty-free shopping sprees seems to be over.

The SCMP noted that the number of Chinese tourists traveling abroad is increasing again at many Asian destinations thanks to expanded visa exemption policies and a more stable yuan.

However, spending by this group of customers, especially at duty-free shops, is no longer as explosive as it was before Covid-19.

The days of 'carrying suitcases to collect duty-free goods' are over.

South Korea is a prime example. Before the pandemic, Chinese tourists accounted for approximately 70% of the country's duty-free sales revenue.

In the first 11 months of 2025, South Korea welcomed approximately 5 million Chinese tourists. Although tourist numbers have almost fully recovered, duty-free sales have gone in the opposite direction.

According to the Korea Duty-Free Shops Association, industry-wide revenue from January to November 2025 decreased by 12% year-on-year, falling to $80.6 billion , the lowest level since 2015.

Faced with declining sales and rising rental costs, two major retailers, Shilla Duty Free and Shinsegae Duty Free, relinquished a portion of their operating rights at Incheon International Airport in September and October. These licenses were once considered "golden assets" for the travel retail industry.

Subramania Bhatt, CEO of the travel marketing and technology company China Trading Desk, argues that the South Korean duty-free market has suffered "structural damage." According to him, the tour shopping model, where Chinese tourists stock up in suitcases and spend in large groups, has clearly weakened.

Previously, duty-free shopping destinations were often a mandatory stop on package tours. However, this trend is losing its appeal as more and more Chinese tourists, especially the younger generation, are choosing independent travel.

This group of tourists prioritizes experiencing local culture, cuisine , and smaller brands, rather than spending most of their time in duty-free shopping malls.

Japan has also experienced a similar situation. Duty-free sales in the country had already declined before diplomatic tensions with China erupted in November 2025.

According to the Japan Department Store Association, duty-free sales in the first 10 months of 2025 reached 464.5 billion yen (approximately $2.9 billion ), a 15% decrease compared to the same period last year.

Meanwhile, Catherine Lim, a senior analyst at Bloomberg Intelligence, said Thailand and Singapore also saw less-than-positive retail performance, despite a recovery in Chinese tourist numbers.

The number of customers entering duty-free shops and the amount of spending per person remain significantly lower than in the period before 2019.

According to analysts, this shift stems from a number of economic and social factors. Amid slowing growth, Chinese consumers are becoming more cautious with their spending.

Furthermore, the demand for purchasing foreign goods when traveling abroad has decreased because consumers can easily find similar products on domestic e-commerce platforms or at the increasingly expanding network of domestic duty-free shops.

The new generation of Chinese tourists

Moqian Sun, founder of the strategic consulting firm The Harvest, observes that a new generation of Chinese tourists has abandoned the notion that "tax-free means cheap and must be bought."

In recent years, China has also proactively brought tourism retail activities back to the domestic market.

Before the pandemic, "daigou"—people who buy luxury goods overseas to resell in China—played a crucial role in boosting duty-free sales in many countries. However, the government has tightened regulations on this activity and expanded the network of domestic duty-free shops.

Tourists visit the Confucius Temple scenic area in Nanjing, Jiangsu province, during the 2025 International Labor Day holiday. Photo: Xinhua News Agency.

Experts believe that in many markets, the average spending of Chinese tourists is unlikely to return to pre-pandemic levels anytime soon, even though total duty-free revenue may increase due to continued visitor numbers. Instead, the industry will become increasingly fragmented.

According to Catherine Lim, wealthy consumers will continue to spend heavily on high-end international brands, especially in places where price differences and authenticity are still significant.

Conversely, mid-range or lesser-known global brands, such as some South Korean cosmetic brands, may gradually lose their competitive edge as consumers gain easier access to competitive pricing right in China.

To adapt, duty-free retailers are forced to compete not only on price, but also on exclusivity, service quality, and overall customer experience.

Humphrey Ho, CEO of investment fund Helios & Partners, believes that each product should be positioned as "a special memory of the trip".

In fact, some markets have already moved in this direction. According to Mr. Ho, countries like Qatar, Saudi Arabia, and the United Arab Emirates are seeing strong growth in duty-free revenue from Chinese tourists thanks to enhanced airport experiences.

High-end shopping spaces and designer cafes, such as those in Doha, are seen as key factors in attracting spending.