Europe is expected to be the big beneficiary in the coming year, as the weak euro makes shopping and traveling on the Continent less expensive. Chinese tourists now account for 40 percent of all luxury sales in France, 35 percent of luxury sales in Italy and 25 percent of luxury sales in the U.K., according to the HSBC report. It said that Chinese tourists devote 80 percent of their spending budget—or about 11,000 euros ($13,000)—to shopping while they're in Paris.
In the U.S., Chinese tourists account for only 10 percent of sales, but that's expected to grow, the report said. It said Chinese tourism in the U.S. is projected to jump fourfold by 2021 and "luxury should benefit a lot from Chinese tourism."
The crackdown on corruption in China as well as the country's slowing economic growth is hurting domestic sales of high-end goods—from watches and handbags to wine and sports cars. Luxury giant LVMH just reported its first decline in annual operating profit since 2009, as sales in China slowed.