Published on : Saturday, March 15, 2014
Thursday.
Total overseas spending in the British capital is expected to expand by 47 percent in the
same period, said Marie Hickey, associate director of research at Savills, an international
real estate adviser, in the report.
The UK plans to make it easier for Chinese nationals to apply for visas to visit the country, UK Chancellor of the Exchequer George Osborne announced last October while visiting China.
“The Chinese are now the biggest spending travelers globally, and with initiatives in place to make visiting the UK easier, the retail sector should see a positive impact over the forthcoming years, with London set to benefit the most,” Hickey said.
Expected larger numbers of Chinese visitors should increase the demand for new entrants
into Central London, with retailers hoping to test the waters before entering Asian
markets, according to the report.
Fifty-five international brands opened their first UK stores in London in the past three years.
“London’s rising prominence as a global retail destination means that we expect occupational demand to intensify, putting upward pressure on rents on all key pitches in
the West End, particularly on the luxury pitches,” said Anthony Selwyn, head of Central
London retail, Savills.
“Over the next 18 months, we expect Bond Street’s prime Zone A rents to exceed 1,500
pounds per square foot-up 15 percent from where they are now-with Brompton Road
likely to see the greatest uplift in the region with 20 percent.”
Chinese shoppers have become the biggest consumers of luxury goods in the world, accounting for 29 percent of global consumption, said James Macdonald, head of
research for Savills in China, citing figures from Bain Co.
However, China’s retail stores account for only 7 percent of the sales, with only one-third
of purchases by Chinese taking place on the Chinese mainland.
British Ambassador to China Sebastian Wood described the statistics as both striking and encouraging, adding that the visa system is supporting the growth of the UK’s economic,
educational and tourism relationship with China.
Tags: Chinese tourist