Rich Chinese tourists are now looking to spend their mega bucks closer home, choosing Hong Kong and Singapore over London and New York to get their luxury fix, according to an HSBC report.
As the retail landscape develops in the region, Chinese are travelling more to Hong Kong, Macau, South Korea, Taiwan and Singapore than to Europe and the U.S.
For example, Chinese travelers are expected to account for 60 percent of all luxury retail sales in Hong Kong in 2013, and 75 percent of sales in Macau. This compares to 10 percent of sales for the U.S. and 20 percent in the U.K., according to the HSBC report titled "The Bling Dynasty."
Easing travel restrictions, better bargains and proximity are pushing Chinese travelers, who are expected to contribute 32 percent to global luxury sales in 2013, to look closer home.
"Chinese consumers do not even need to travel as far as Europe for a good deal, given Hong Kong's tax-free prices," the report said, highlighting that lower priced luxury goods outside China has become a major attraction for shoppers.
(Read more: Wealthy Chinese Shift Their Luxury Buying Overseas)
With an increasing number of Chinese tourists spending in key Asian cities, luxury retail in Europe has been hit by a drop in Chinese demand.
More than half of 23 luxury brands surveyed recently by Reuters at stores in London, Paris and Milan reported lower demand from tourists, notably from Asia. This could spell trouble for Europe's luxury market, where Chinese shoppers account for about one third of luxury purchases, Reuters reported.
Pulling Chinese Spenders
HSBC, meanwhile, expects Asian cities like Singapore to continue to attract more Chinese consumers, as they further add to their retail offering.
Besides shopping, the wealthy city state attracts tourists with add-ons like amusement parks and casinos, the report said.
(Read more: China's Metrosexual Men Revive Luxury Shopping)
The popularity of K-Pop in South Korea is also drawing Chinese travelers there, who now view the country as trendy. "We believe that Korean pop culture in Asia is gradually replacing Japan as the main influence for cosmetics, fashion and potentially luxury itself with the Chinese." HSBC said. "Chinese are likely under the influence of Korean trends."
The number of Chinese tourists visiting Korea has grown annually at 25 percent since 2008, according to the Korea Tourism Organization.
-By CNBC.com's Rajeshni Naidu-Ghelani; Follow her on Twitter