Luxury goods market seen slowing amid tourism chill

MILAN – Analysts are tamping down growth forecasts for the luxury goods market this year due to a chill in international tourism.

The Altagamma Foundation of Italian producers of luxury goods said Tuesday that 27 surveyed analysts lowered their consensus forecast for Europe to 2 per cent growth from 4 per cent earlier as high-spending tourists cancelled travel plans after November terror attacks in Paris. The decline is partially offset by a recovery in domestic spending.

Analysts also dimmed forecasts for North America, Asia and Latin America to zero growth, with North America hampered by a strong dollar discouraging foreign visitors and domestic consumption. Japan is forecast to grow by 5 per cent.

The luxury market last year was worth 253 billion euros, a 13 per cent jump over the previous year at actual exchange rates.