As the COVID-19 pandemic has dramatically affected international tourism, certain US luxury retail markets that are relatively more dependent on tourism are the worse affected, says a report by boutique consulting firm Webster Pacific that specialises in luxury retail. It predicts the luxury retail markets of Miami, Honolulu and Las Vegas will be the worst hit.
Spending at luxury retail stores is heavily dependent on international tourism. Tourism accounts for about 40 per cent of total luxury goods spending, according to per S&P Global Market Intelligence.As the COVID-19 pandemic has dramatically hit international tourism, certain US luxury retail markets that are relatively more dependent on tourism are the worse affected, says a report by boutique consulting firm Webster Pacific that specialises in luxury retail. It predicts the luxury retail markets of Miami, Honolulu and Las Vegas will be the worst hit.#
One of the pandemic’s many blows to the US economy is an enormous decrease in international tourism. As per the National Travel and Tourism Office (NTTO), international visitor travel spending decreased by 98.9 per cent in the past year, from $11.6 billion in April 2019 to only $129 million in April 2020.
To better understand which US luxury retail markets are most at risk of being negatively impacted by Covid-19, Webster Pacific examined various data related to 42 US metros. Aspen and Long Island have a significant designer store presence but are not included in this ranking due to a lack of tourism data, a press release by the company said.
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