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 The old-but-new leadlights are destined to shine on what
business and government cheerleaders see as the epicenter of a
wide movement to propel Madrid into the big league of global
shopping destinations.
Alongside revamps of tired beach resorts, Spain is attempting to
lure tourists with shopping city breaks to widen its appeal to
the biggest spenders -- and not coincidently to keep its
economic recovery on track.
Regional governments, construction and travel firms as well as
shops are working hand-in-hand to recast Spain - and Madrid in
particular - as a retail hub to rival Milan or Paris.
These efforts include simplifying Spain's value-added tax refund
system from foreigners and promoting Madrid's shopping
credentials with Chinese bloggers, many of whom were invited to
tour the sights last year.
The sprawling Canalejas shopping complex is at the center of the
capital's luxury makeover. It is a private initiative - due for
completion in 2018 - which involves refurbishing seven buildings
and which will house Spain's first Four Seasons hotel.
With a price tag of 500 million euros, the work includes
renovating the ornate pillars, crumbling marble and mahogany
wood interiors in the 19th century buildings, which were once
used as head offices by Spanish banks.
"We are failing to attract the tourists we want," said Maria
Jesus Escobar, public sector officer at Ernst & Young, at a
recent tourism summit in Madrid. "We want to target those with
the most purchasing power."
Tourist arrivals in Spain have reached record highs for four
years in a row, growing to 75.6 million in 2016.
But some 20 percent of those were potentially "borrowed" from
other Mediterranean destinations that have suffered from recent
violence, such as Turkey or Egypt, according to industry lobby
group Exceltur.
Retaining these visitors is key: tourism generates one in eight
jobs in Spain and has underpinned its recovery from recession.
But that alone is not enough.
The number of foreign visitors has risen around 30 percent since
2006, but their spending per head has actually decreased
slightly. http://tmsnrt.rs/2kcmX2O
One reason for this is that Spain draws a fraction of the
world's most profitable tourists - Chinese and Russians - and
has cornered only 4 percent of Europe's luxury shopping market.
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FLYING TO CHINA
Playing catch-up will not be easy - nor unchallenged. France has
gone all out in cutting visa turnaround times for Chinese tourists
to 48 hours at most, for instance.
Singapore and Tokyo are also vying for attention from Asian shoppers
while London's allure will get a fresh boost from a fall in the
value of the pound following Britain's decision to leave the
European Union.
But Spanish industry players are rising to the challenge, with
airlines increasing the number of flights between Spain and Asia.
Spanish carrier Iberia touched down in China for the first time in
2016.
Outlet centers in Madrid and northeastern Barcelona - a port city
famed for its Gaudi architecture and a popular stopover for cruise
ships - recently added chauffeurs, stylists and a hands-free service
allowing shoppers to avoid carrying their own bags.
As for what is on offer, few Spanish brands attract the same
recognition as Paris or Milan-based fashion houses.
But firms like luxury leather label Loewe or designers Adolfo
Dominguez and Agatha Ruiz de la Prada may stand to benefit, and
Madrid also boasts flagship outlets of Inditex, owner of high-street
brands Zara and Massimo Dutti.
Like department stores in Paris or Moscow, Spain's El Corte Ingles
chain has staffed up with Mandarin-speakers.
Fine jeweler Suarez, which already derives 60 percent of its sales
from foreign tourists, has done the same and also hired
Russian-speaking sales staff for its store in the high-end resort
town of Marbella. "We need to create a cosmopolitan experience: one
that is unique and that means promoting international brands
alongside Spanish ones," said Carlos Delso, director of the
70-year-old family business which designed Queen Letizia's
engagement ring.
Ernst & Young calculates that turning Spain into a shopping hub
could more than triple spending by non-Europeans on tax free
purchases to 5 billion euros ($5.4 billion) by 2019 - and create
50,000 jobs.
(Editing by Sarah White/Jeremy Gaunt)
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