Chinese Tourism Boosting Rodeo Drive Revenue

As visitors from China provide California's top tourism growth in the last year, as reported by Bloomberg Businessweek, the Beverly Hills' Conference and Visitors Bureau's strategy to increase international growth in the Golden Triangle is also paying off.

While some of the increased tourism on Rodeo Drive may be organic, Executive Director Julie Wagner says the city's international traffic has grown 20 percent in the last five years. She added that some Rodeo Drive merchants see as much as 60 percent of revenue coming from Chinese visitors.

The Conference and Visitor's Bureau works with the city on many trade missions, such as its annual trip to New York, and Wagner said they are charged with generating revenue through the transit occupancy tax and sales tax by a wide variety of strategies. The bureau is just beginning a visitor profile study.

While retail growth from international tourists in the Golden Triangle is one driver, Wagner notes that China is big, but not as impactful on the city's hospitality sector as one would think, given they travel in large group settings.

"And when we see a new market, it tends to start out that way," she said. "But like in Australia, the maturation process is to evolve in foreign independent travel. And as time grows, the hotels are starting to see some growth."

Beverly Hills and Rodeo Drive are known the world over as a luxury shopping destination, and Wagner notes the top priority for Chinese visitors is to shop. That said, the Conference and Visitors Bureau's goal the last four years is to "get in front" of the travel trade marketing efforts, and to get on the top folds of those travel itineraries so that Beverly Hills is a huge part of the Los Angeles experience.

Other strategies include marketing to the Chinese local community since many are connected overseas.

"Which speaks to our third prong, marketing ourselves as a Chinese culturally-friendly location," Wagner said, noting that most Rodeo Drive businesses have staff who can speak Mandarin and accept UnionPay, the most common form of payment in China.

"We're doing our third Chinese New Year in February," Wagner added. "It's a whole list of strategies to establishing our relevance and ability."

The Conference and Visitor's Bureau is in the process of completing a Chinese website by Feb. 1 as well.

"China's a very sexy word and people get excited about it," she said. "And even the local shop on Rodeo. Local is our bread and butter, Beverly Hills residents first and foremost. "And other international markets are also huge because they contribute to the city sales tax, which helps the city general fund which helps provide all these amenities and services."

For more information on the CVB, visit its website.