Official: Stop tourists money going abroad

The spending power of Chinese tourists abroad has become so great that a top commerce official has called on local governments and companies to take measures to attract these buyers in order to stop their money flowing overseas.

Minister of Commerce Chen Deming said at a working conference in Beijing Friday that the spending power of Chinese tourists "should present a great potential for domestic markets to tap," China National Radio reported Tuesday.

"The Yangtze River Delta and Pearl River Delta and big cities should work out solutions to stimulate domestic consumption and reduce the trade surplus," he said.

Many countries have benefited from Chinese big spenders who purchase goods from luxury brands such as Louis Vuitton and Gucci on their overseas trips. Record Japan, a Beijing-based website on Japanese culture, reported that "Chinese tourists have become the mainstay of Japan's sightseeing industry" since July.

About 1 million Chinese have spent 7 billion yuan ($1 billion) in the US this year, Chen said.

In contrast to robust overseas spending, domestic consumption remains in a slump. Research by consulting firm Mckinsey & Company said over 40 percent of luxury goods bought by Chinese customers are purchased overseas.

Su Huiyan, an analyst at iResearch Consulting Group, told the Global Times Tuesday that luxury goods are sold cheaper overseas, and some products are not available in domestic markets, pushing Chinese consumers to go abroad.

On September 1, China increased the tax rate on goods purchased by post from foreign countries, another factor pushing more people to go overseas to buy.

Mei Xinyu, an associate researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, told the Global Times Tuesday that increasing the cost of going overseas to shop could get Chinese to buy domestically.

Yuan Gangming, an expert in macro-economy studies at the China Academy of Social Sciences, said it is not necessary for the government to intervene by setting high tariffs to protect domestic businesses.