2024 Taiwan's Outbound Travels Impact Domestic Consumption

Taiwan's annual outbound travellers in 2024 was 16,849,683, about 5 million more than 11,795,834 in 2023, according to Tourism Bureau open database released.

The increase in outbound travel typically impacts domestic consumption, with the following aspects being the most noticeable:

1. Consumption Outflow:

When more people choose to travel abroad, their spending shifts overseas, especially in areas such as shopping, accommodation, and dining. This places a certain stress on the domestic retail, food and beverage, and tourism markets.

2. Changes in Shopping Behavior:

Travelers often purchase branded goods, cosmetics, and electronics at duty-free shops or local markets abroad, reducing the demand for similar products domestically.

3. Slower Domestic Consumption:

When traveling abroad becomes a trend, especially during long holidays (e.g. summer/winter vacation), foot traffic in domestic malls, restaurants, and entertainment venues may decrease, causing a short-term dip in revenue.

4. Economic Ripple Effects:

On the other hand, this can boost growth in certain industries, such as travel agencies, airlines, foreign currency exchange, and luggage sales. Additionally, if travelers have positive shopping experiences abroad, it may drive an upgrade in domestic consumption upon their return, with a pursuit of higher-quality goods and services.

Japan is Taiwanese 1st Preferred Destination

Referring the chart above, 34~38% outbound travelers were preferred Japan as their first destination.

The dataset released by JCSC and ShopperTrak Index - Japan, the store in store sales and total footfall year-on-year rate across Japan were indeed consecutive increased over 2023 - 2024.

Taiwan Retailers May Consider

• Enhance the Shopping Experience to “Keep Customers Local"

  • Create Unique Selling Points: Launch “Taiwan-exclusive” or “local brand collaboration” products, making items more appealing by emphasizing that they’re only available domestically.

  • Introduce Tax-Free or Duty-Free Services: Mimic the duty-free model found at international airports by offering tax refunds or discounts on specific items, attracting consumers who are about to travel or just returning.

• Cater to Travel Needs and Capture Pre-Trip Spending

  • Travel Essentials Section: Set up dedicated areas for travel must-haves, selling items like travel adapters, packing organizers, and mini appliances to meet the needs of outbound travelers.

  • Collaborative Marketing: Partner with travel agencies and airlines to offer shopping discounts or travel bundles, encouraging spending before trips.