Ben Brown recently reported that Bangkok had leapfrogged London to become the world’s most visited city in 2016. The figures were released as part of Mastercard’s Global Destination Cities Index, now in its seventh year, which tracks global visitor numbers and tourist spending.
This week Ben dives further into the report to discover which city generates the most revenue from visitors. Although Bangkok is the world’s most visited city, it does not attract the most expenditure. In fact, it comes in fourth, trailing behind Dubai, London and New York respectively.
Dubai – a city built on decadence and excess – tops the global ranking for tourist spending for a fifth year running, estimated to generate US$31 billion by the end of 2016. That’s a third more than second-place London, which will generate just US$19.8 billion.
Perhaps the most startling fact is that each visitor to Dubai spends US$2,050, three-times the amount spent by the average visitor to Bangkok, although of course prices are much higher.
Below are the top five in detail:
5. Tokyo
Total visitor expenditure: US$13.48 billion
Expenditure per visitor: US$1,152
4. Bangkok
Total visitor expenditure: US$14.84 billion
Expenditure per visitor: US$690
3. New York
Total visitor expenditure: US$18.52 billion
Expenditure per visitor: US$1,458
2. London
Total visitor expenditure: US$19.8 billion
Expenditure per visitor: US$992
1. Dubai
Total visitor expenditure: US$31.3 billion
Expenditure per visitor: US$2,045
Overall, visitor expenditure around the globe continues to grow faster than GDP, demonstrating the strength of the travel sector. Having said that, the rate of growth has begun to slow down according to IATA – the aviation industry’s primary trade organisation.
Visitor numbers and expenditure is growing, but at a slower rate than last year. You can see the growth against GDP in the chart below:
Globetrender doesn’t expect this small slow-down to be a long-term trend, more a short-term reaction to global pressures such as increased terror threats across Europe in the last 12 months.
Analysing the breakdown of expenditure, we also see curious spending patterns. The percentage of visitor expenditure attributed to shopping in Tokyo, Seoul, London and Osaka, for example, is over 35 per cent. In Amsterdam and Vienna, on the other hand, shopping is not a priority for visitors.
In Paris, Rome, Milan and Amsterdam, the percentage spent on accommodation is over 40 per cent, mirroring the higher cost of living. In contrast, accommodation costs in Shanghai, Bangkok and Istanbul are demonstrably lower.
Below is the top 20 global ranking for tourist spending…
- Dubai – US$31.3 billion
- London – US$19.76 billion
- New York – US$18.52 billion
- Bangkok – US$14.84 billion
- Tokyo – US$13.48 billion
- Paris – US$12.88 billion
- Singapore – US$12.54 billion
- Seoul – US$12.30 billion
- Kuala Lumpur – US$11.34 billion
- Taipei – US$9.6 billion
- Barcelona – US$9.28 billion
- Miami – US$8.15 billion
- Los Angeles – US$8.10 billion
- Madrid – US$8.02 billion
- Istanbul – US$7.54 billion
- Hong Kong – US$6.84 billion
- Sydney – US$6.40 billion
- San Francisco – US$5.93 billion
- Munich – US$5.32 billion
- Berlin – US$5 billion