Foreign Tourists in U.S. on Record Shopping Pace

Even if you don’t know Italian, it’s easy to figure out what five tourists from Northern Italy are shopping for in the South Street Seaport on a free afternoon.

“Ray Ban.” “Revlon.” “Nike.” “Timberland.” All these popular American brand names are sprinkled throughout their hurried conversations.

A Japanese tour group on the same day in the city is headed not only for the Statue of Liberty, but for Bloomingdale’s, where the members are interested in spending their hard-earned yen.

Foreign visitors are spending record amounts on everything from designer jeans and videocassette recorders to the Samsonite luggage to carry it home in.

Nearly 30 million foreign visitors are expected to spend about $22 billion in the United States this year, a 13% increase over the year before, according to Harvey Shields, marketing research analyst for the Commerce Department’s U.S. Travel and Tourism Administration.

The surge is largely the result of the battered U.S. dollar--down 50% from its peak in 1985 compared to its major trading partners. And with the summer tourist season approaching, New York retailers are greeting the Germans, Japanese, Italians, French and British with open arms.

At the Foot Locker store at Pier 17 of the South Street Plaza in New York, for example, manager Jerry Vossen says foreigners now represent about 75% of his business.

Many foreigners are making their second, third or fourth visits. With each successive visit, those who once traveled only in large groups to the traditional gateway cities such as New York and Los Angeles become more independent and knowledgeable about what they want and where to get it.

And other cities are attempting to slice off a piece of this growing market by increasing advertising budgets abroad. Even Oklahoma now has a tourist office in Japan. But in the world of shopping, New York still holds sway in attracting foreign visitors.

“New York is the shopping capital of the world,” said Jack McBean, head of the New York Convention and Visitors Bureau. “Goods come here from everywhere. . . . People come to load up.”

Affluent foreigners crowd many of New York’s priciest shopping areas and more are expected this summer. “Merchants here in the tower are expecting gang-buster business this year from foreigners,” said Ray Bartow, vice president for the Trump organization of the exclusive shops in Trump Tower.

But because travel here is more affordable for foreigners by favorable exchange rates, larger numbers are likely to be middle-class travelers who stay in budget hotels and shop at discount stores rather than patronize four-star hotels and stopping only at shops on Fifth Avenue.

“The cheaper dollar is definitely bringing the middle class,” said Sante Scardillo, a tour guide and translator for American Tours International, a Los Angeles tour wholesaler for foreign travelers that expects its business to almost double this year. “They want the bargains.”

“I want Revlon,” said Paola Fontanesi, a traveler in New York from Northern Italy. “Is less expensive here--but in the shops on Fifth Avenue, maybe it is more expensive” than in other stores, she said.

According to travel experts, the Japanese spend the most during their trips, an average of $366 a day last year, an increase of 142% over the previous year. And the Japanese tend to be extremely brand conscious. Items from Cartier, Gucci and Louis Vuitton, designer jeans and other expensive designer goods are a must. Not only are the items less expensive here, but there’s a broader range of choices and availability.

The British place the highest priority on shopping when choosing a foreign destination, according to Commerce Department studies. Eighty-eight percent of British travelers surveyed mentioned shopping as important, while 85% of Japanese, 80% of the Swiss and 74% of French and Germans found shopping important when traveling.

American-made cosmetics, very expensive abroad, are a particularly hot item, retailers say. Many of the groups, particularly those from South America, buy shopping bags full to take back to friends and relatives. Sunscreens and other skin-care products are especially popular.

Like the rest of the world, the foreign tourists this year crave American blue jeans. And if it has a designer label, that’s even better.

At New York’s Penta Hotel, where about 35% of spring and summer business is from foreign tour groups, hotel vice president Barry Mann said he sees guests coming back from shopping with armloads of clothing from the nearby garment district, as well as boxes of electronic equipment and cameras.

Some retailers leave special cards at the hotel inviting foreign guests to their stores and telling them of special bargains.

“They’re picking up stuff for 40% less than it would cost in their own countries,” Mann said. Even electronic equipment that has to be altered for the electrical currents in Europe are a bargain when they’re paying $250 for video equipment that costs twice as much at home, he added.

Many of New York’s big retailers have special shopping programs for foreign groups. At Bloomingdale’s, Joan Cuomo’s calendar is booked through July with foreign groups. The store often opens early for the groups, as it did recently for a group of about 50 tourists from Amsterdam, who were interested in beach towels embossed with the Statue of Liberty and designer clothing.

At Saks Fifth Avenue, the Fifth Avenue Club has special shopping services such as lists of store employees who can act as translators.

It’s not just the shopping bargains foreign visitors want. In addition to traditional sightseeing, foreign visitors now come for sports and cultural events.