Retail Tourism: Powering Economic Growth Through Shopping

Shopping isn’t just about buying souvenirs anymore; it’s a dynamic force driving global tourism and economic activity. According to a recent report by the World Travel and Tourism Council (WTTC), retail tourism contributed a significant 6 percent, approximately $178 billion, to the global travel and tourism industry’s GDP in 2019.

Shopping: A Travel Experience

For travelers, shopping is more than a leisure activity; it’s a chance to immerse themselves in local culture and discover unique products. Conversely, for local economies, retail tourism means increased revenue and job opportunities.

A staggering 18 percent of global travelers cite shopping as their primary reason for traveling, highlighting the immense impact of shopping destinations on international tourism.

Dubai: A Retail Mecca

Dubai stands out as a global leader in retail tourism with around 100 malls, including the iconic Dubai Mall. In 2023, Dubai Mall welcomed a staggering 105 million visitors, emphasizing its vital role in Dubai’s economy.

Dubai Mall isn’t just about shopping; it embodies “retailtainment” by integrating entertainment attractions like the Dubai Aquarium and Underwater Zoo within its vast retail space.

Riyadh: The Emerging Shopping Hub

Riyadh, over a thousand kilometers away, is swiftly becoming a premier shopping destination with luxurious malls and bustling marketplaces. Ambitious projects like The Avenues – Riyadh aim to enhance the city’s allure by blending retail with entertainment offerings.

Sustainability Matters

As retail tourism evolves, sustainability is becoming a key consideration for consumers. About 35 percent of tourists prioritize sustainability when shopping during their travels, signaling a growing market for eco-friendly products.

In response to this trend, retailers are adapting to meet the demand for sustainable goods, especially in regions like the UAE, the U.S., India, and Saudi Arabia.

The Future of Retail Tourism

The future of retail tourism lies in its integration with sustainability, cultural immersion, and entertainment. This evolving landscape highlights shopping’s pivotal role in driving global travel and economic development.

As shopping continues to shape tourism experiences worldwide, retailers and destinations must embrace sustainability and innovation to meet the demands of conscious consumers and ensure long-term economic growth.