| WASHINGTON - Dec. 30, 1998--Taubman Centers Inc. (NYSE:TCO),
a leading U.S. shopping center developer, and the Tourism Industries office
in the U.S. Department of Commerce Wednesday released the results of a
study examining the correlation between cultural tourism and shopping.
One of the primary findings of this study is that overseas travelers
to the United States who visit cultural attractions (i.e. museums, national
parks) tend to spend more time and money during their visit. This finding
complements the results of a report on domestic travelers developed by
the Travel Industry Association of America which found that, when compared
with U.S. travelers in general, those domestic travelers who express an
interest in visiting historical and cultural destinations spend more money
on their visit and list shopping as one of their planned activities.
This joint project between Taubman Centers and the Department of Commerce
is the first time  anyone
has looked at the correlation between cultural tourism and shopping as
it pertains to overseas travelers. For a copy of the study, interested
parties should contact Helen Marano, U.S. Department of Commerce at 202/482-4752.
In developing this study, the Department of Commerce, Tourism Industries
office used a special custom run of data from its ongoing research program
called the In-Flight Survey of International Air Travelers. This program
surveys a monthly sample of overseas travelers on the plane after they
have visited the United States.
In the most current survey that was used for this study, 48,882 travelers
responded. The Tourism Industries office analyzed the data from a custom
run relative to the respondents' activities, shopping habits, expenditures,
length of stay, traveling companions and accommodations, among other things.
In addition to looking at general statistics on overseas travelers, four
specific country markets -- Japan, the United Kingdom, Germany and Brazil
-- were selected for added insights, as visitors from these countries show
the highest incidence of shopping when visiting the United States.
From this, respondents were placed in the following general categories:
-
General Shoppers -- those overseas
travelers who indicated that they engaged in shopping as an activity during
their trip to the United States; and
-
American Culturalist Shoppers -- overseas
travelers who engaged in both shopping and cultural and/or ethnic heritage
tourism activities during their visit to the United States or have engaged
in at least two cultural/heritage-related activities (gone to a museum,
concert, visited a national park, etc.).
Some of the study's more significant findings are the following:
| Nearly nine out of 10 (89%) of overseas travelers to the United States
report that they engaged in shopping as an activity during their trip to
the United States. This represents a 4 percent increase over 1995 figures
and is comparable to 1996 reporting levels. In terms of hard numbers, this
translates to 21,533,000 overseas travelers who enjoyed some form of shopping
during their visit to the United States. |
| When asked to indicate what cultural and/or heritage-related activities
they experienced during their U.S. visit, overseas travelers who also shopped
identified the following (in rank order): visit to historical places (35%);
visits to cultural heritage sites (21%); visit to national parks (21%);
art gallery/museum visit (20%); attending a concert, play or musical theater
(15%); visits to ethnic heritage sites (6%); visits to American Indian
communities (5%). |
| Overseas travelers who engaged in both shopping and cultural and/or
ethnic heritage tourism activities (culturalist shoppers) stay longer in
the United States -- nearly a week longer -- than general shoppers. |
| A significantly higher proportion of culturalist shoppers (29%) are
first-time visitors to the United States. |
| The culturalist shopper has visited more places in the United States
than the general shopper, averaging two states and nearly three destinations. |
| The top five state destinations for general shoppers were California
(27%), Florida (25%), New York (21%), Hawaii (14%) and Nevada (10%). Culturalist
shoppers favored New York as their No. 1 travel destination (at 32% for
a five-point margin of preference). California trailed only marginally
at 31%, while Florida and Hawaii lost ground as a destination for the culturalist
shopper as compared with general shoppers (4 percentage points drop for
each). |
| More than nine out of 10 culturalist shoppers cited vacation, leisure
or visiting friends and/or relatives as the primary purpose of their trip,
compared with 81% of the general shoppers. |
| On average, culturalist shoppers spent 12% more than general shoppers,
reflective of their longer stay in the United States and activity levels
in combination with shopping. Even in specific expenditure categories,
compared with general shoppers, culturalist shoppers spent 23% more on
food and beverages, 22% more on entertainment and 14% more on lodging,
for example. |
| Nearly one-fourth (24%) of both segments of travelers (culturalist
shoppers and general shoppers) used a package for their travel arrangements,
but the culturalist shopper averaged nearly two more nights in prepaid
lodging (nine nights vs. seven nights). |
| Culturalist shoppers booked their trip further ahead of the general
shopper (91 days on average as compared with 74 days for the general shopper). |
In looking at the four specific country markets, some of the study's
most interesting findings are the following:
-
More than any other group studied, Brazilians spent a larger portion of
their money on gifts and souvenirs, with nearly one-third of their total
expenditures going to this single category. On the average, Brazilian shoppers
spent about $58 per day of their visit on gifts and souvenirs.
-
As compared with the other four countries studied, the Japanese were the
biggest shoppers with nearly all (94%) reporting that they had shopped
while in the United States.
-
Brazilian shoppers visited the United States more often than the other
four countries studied (averaging 7.2 visits over the past five years),
followed closely by the British shoppers who averaged 5.6 visits over the
past five years.
-
Brazilian shoppers reported the highest average household income of the
four countries studied, with an average annual household income of $94,000
(Japanese shoppers reported the second-highest average annual household
income at $82,100).
-
Germans reported the longest length of stay with 17.3 days, 1.3 days longer
than the British (who reported the next-longest length of stay). This was
one week longer than the Japanese who positioned third (at eight days)
in terms of length of stay.
-
While visitors to the United States averaged 1.7 states and 2.3 destinations
during their trip, German visitors reported the highest number of states
visited (1.9) and the most destinations (3.0). Also, German culturalist
shoppers reported visiting 3.5 destinations during their visit.
-
Of the four countries studied, the Japanese were more likely to be first-time
travelers to the United States. Thirty-three percent of Japanese respondents
were new-to-market travelers. This might explain why the Japanese respondents
were more likely to purchase organized travel packages (about half had
booked a package, as compared with 22% of the Brazilians, the next segment
most likely to book a package) and why more than six out of 10 Japanese
travelers relied on a travel agent to book their trip.
-
Florida was the most popular destination for U.K. travelers, as with the
Brazilians and Germans. However, when shopping was combined with cultural
activities, Florida's lead was minimized with California and New York gaining
strength to position themselves right behind Florida.
-
British shoppers were much more likely to use cash and travelers checks
(56% of those surveyed) to pay for their expenditures than any other group.
German tourists
differed from other visitors to the United States in that:
-
German tourists were more apt to look at a variety of resources
to book their trip to the United States. While their first choice was travel
agencies (at 45%), they had the strongest tendency to use state and/or
city travel offices, friends and/or relatives and travel guides to help
plan their trip.
-
Of the four countries studied, Germans were the least likely
(at 13% of those surveyed) to book a travel package for their visit to
the United States.
-
Germans reported the longest length of stay with 17.3 days,
1.3 days longer than the British (who reported the next longest length
of stay). In any case, this was one week longer than the Japanese, who
positioned third (at eight days) in terms of length of stay. However, Germans
were more apt to be staying with families or friends when they visited
the United States. More than one-third of German travelers stayed in a
private home during their trip to the United States, a similar proportion
to the British.
-
While visitors to the United States averaged 1.7 states and
2.3 destinations during their trip, German visitors reported the highest
number of states visited (1.9) and the most destinations (3.0). Also, German
culturalist shoppers reported visiting 3.5 destinations during their visit.
-
The average annual household income of German shoppers was
$77,500 and, along with Brazilian shoppers, Germans were most likely to
pay for their trip expenditures with a credit card.
|
British tourists
differed from other visitors to the United States in that:
-
Florida was the most popular destination for UK travelers,
as with Brazilians and Germans. However, when shopping was combined with
cultural activities, Florida's lead was minimized with California and New
York gaining strength to position themselves right behind Florida.
-
British culturalist shoppers planned their trips the
furthest out, averaging 108 days in advance and booking their airline reservations
on an average 83 days in advance. British cultural shoppers stretched these
averages with the longest advance trip planning period of 120 days.
-
Both British (at 15%) and German (at 13%) travelers
were least likely to use a travel package for their trip to the United
States.
-
Of the countries studied, British culturalist shoppers
were among the most frequent travelers to the United States having averaged
5.6 visits in the past five years.
-
The British (at 16 days) and Germans (at 17.3 days)
reported the longest length of stay of the four countries studied. Both
of these averages lengthened to 20 days or more for the culturalist shopper
segments of both country groups.
-
Four out of 10 British visitors (40%) stayed in a private
home during their visit, as compared with nine out of 10 Japanese and Brazilian
tourists who used a hotel or motel for their lodging.
-
British shoppers were much more likely to use cash
and travelers checks (56% of those surveyed) to pay for their expenditures
than any other group.
|
Japanese tourists
differed from other visitors to the United States in that:
-
As compared with the other four countries studied, the Japanese
were the biggest shoppers with nearly all (94%) reporting that they had
shopped while in the United States.
-
Of the four countries studied, the Japanese were more likely
to be first-time travelers to the United States. Thirty three percent of
Japanese respondents were new-to-market travelers. This might explain why
the Japanese respondents were more likely to purchase organized travel
packages (about half had booked a package, as compared with 22% of the
Brazilians, the next highest country group who booked a package) and why
more than six out of ten of Japanese travelers relied on a travel agent
to book their trip.
-
Japanese travelers who visited the United States reported
the largest average party size of more than two individuals over the other
countries analyzed.
-
The vast majority of Japanese and Brazilian tourists (nine
out of ten) used a hotel or motel for their lodging, while four in ten
of British and German culturalist shoppers reported staying in a private
home during their visit to the United States.
-
The average annual household income of Japanese shoppers
($82,100) was second only to Brazilian shoppers (with an average annual
household income of $94,000).
-
Japanese shoppers -- more than any other group -- were much
more likely to pay for their trip expenditures in cash (46%).
|
Brazilian tourists
differed from other visitors to the United States in that:
-
For Brazilian general shoppers, Florida was the number one
tourist destination. However, culturalist shoppers from Brazil, like culturalist
shoppers in general, favored New York as their destination.
-
Of the four countries studied, Brazilians reported the shortest
advance booking time, averaging 56 days and making their airline reservations
less than one month out from the trip.
-
Brazilian shoppers visited the United States more often than
the other four countries studied (averaging 7.2 visits over the past five
years), followed closely by the British shoppers who averaged 5.6 visits
over the past five years.
-
The vast majority of Brazilian and Japanese tourists (nine
out of ten) used a hotel or motel for their lodging, while four in ten
British and German culturalist shoppers reported staying in a private home
during their visit to the United States.
-
Brazilian shoppers reported the highest average household
income of the four countries studied, with an average annual household
income of $94,000. This may be correlated to the finding that over three-quarters
of the Brazilian visitors reported their occupation as either a manager/executive
or as a professional/technical.
-
More than any other country group studied, Brazilian shoppers
spent a larger portion of their money on gifts and souvenirs, with nearly
one-third of their total expenditures going to this single category. On
the average, Brazilian shoppers spent about $58 per day of their visit
on gifts and souvenirs.
|
Recognizing an opportunity to attract international shoppers, Taubman
Centers Inc. centers have developed a variety of tourism programs that
combine shopping with visits to local cultural destinations. Part of the
company's popular World Class Shopping program, these new cultural tourism
programs are being introduced at many of the most popular shopping destinations
in the country.
In addition to hotel accommodations and special amenities at their respective
shopping centers, several Taubman centers have partnered with the finest
museums, historic/cultural attractions, theaters and tourist destinations
in their communities to offer special discounts for World Class Shopping
participants.
Among Taubman centers that have well-developed programs for tourists
are: Beverly Center (Los Angeles), The Falls (Miami), Columbus City Center
(Columbus, Ohio) and, opening in spring `99, Taubman's newest shopping
center, MacArthur Center in Norfolk, Va.
"Our instincts, based on what we have seen in our shopping centers,
told us that there was merit in paying special attention to the international
traveler who enjoyed visiting cultural attractions in the communities surrounding
our centers," explained Karen Mac Donald, director of communications for
Taubman Centers.
"Being able to bring together in one travel package everything our shopping
centers have to offer with local cultural institutions is a win-win situation
for everyone involved -- the shopping center, the cultural attraction and
the overseas traveler."
"One of the more significant insights we have gained from this research
study is that overseas shoppers who also visit cultural and ethnic heritage
sites or experience our country's cultural offerings tend to stay longer
and spend more when they are here in the U.S.," says Leslie Doggett, deputy
assistant secretary of commerce for tourism industries of the U.S. Department
of Commerce. "For this reason, programs which merge these interests with
shopping should prove attractive to overseas visitors."
Taubman Centers operates shopping centers in the following markets:
-- West: Beverly Center (Los Angeles);
Paseo Nuevo and La Cumbre (Santa Barbara, Calif.); Hilltop (Richmond, Calif.);
Sunvalley (Concord, Calif.); Stoneridge (Pleasanton, Calif.); Biltmore
Fashion Park (Phoenix); Meadowood (Reno, Nev.); and Cherry Creek (Denver).
-- Midwest: Woodfield (Chicago);
Great Lakes Crossing (Auburn Hills, Mich.); Fairlane Town Center (Dearborn,
Mich.); Woodland (Grand Rapids, Mich.); Briarwood (Ann Arbor, Mich.); Lakeside
(Sterling Heights, Mich.); Twelve Oaks (Novi, Mich.); and Columbus City
Center and The Mall at Tuttle Crossing (Columbus, Ohio).
-- East: The Mall at Short Hills
(Short Hills, N.J., just outside New York); Stamford Town Center (Stamford,
Conn.); Westfarms (Farmington, Conn.); Lakeforest (Gaithersburg, Md.);
Marley Station (Glen Burnie, Md.); Fair Oaks (Fairfax, Va.); Regency Square
(Richmond, Va.); MacArthur Center (opening March 12, 1999 in Norfolk);
and The Falls (Miami).
Taubman Centers, based in Bloomfield Hills, Mich., was founded in 1950
and is one of the leading real estate developers in the United States.
It is listed on the New York Stock Exchange under the symbol TCO. Taubman
is a member of the Travel Industry Association (TIA) and the National Tour
Association (NTA). To obtain more information about any of Taubman's 27
premier shopping centers, call 248/258-7469 or visit its Web site: http://www.taubman.com. |