Chinese tourism drought will add to luxury retail woes

In view of the wider interest, we are also sending this Europe Commercial Property Update to clients of our UK Commercial Property Service.

With no end in sight to China’s zero-COVID policy, the dearth of Chinese tourists visiting Europe will suppress a key revenue source for luxury retailers and poses a downside risk to our already-weak prime retail rental forecasts. And even though Chinese tourism should recover by the middle of the decade, their spending on European high streets is expected grow more slowly than pre-pandemic.