UK tax free visitor spend slips in 2014 despite China and Middle East growth

UK. There was a slight decline in overall international spend in the UK last year according to the Global Blue’s UK Tax Free Index. The tax refund company revealed that total sales declined -3% year-on-year but, on a positive note, average spend per transaction rose by +3% year-on-year to £633.

China remained the top spending nation in 2014: spend by Chinese shoppers grew by +6% year-on-year and accounted for 25% of total sales. The facilitated visa application process for Chinese visitors to the UK boosted spending on luxury powerhouse and British heritage brands.

Spending by Middle Eastern shoppers also remained strong: Qatari spend per transaction soared to £1,479 and sales to Qataris rose by +16% compared to 2013. Kuwait and Saudi Arabia also registered growth with year-on-year spend up by +7% and +8% respectively. However, spending by shoppers from the UAE declined by -7%.

Spending by Chinese shoppers grew by +6% last year and accounted for 25% of total sales, boosted by the eased visa application process for Chinese visitors to the UK

Following a year of political unrest in Thailand, shoppers from the country were disinclined to spend in the UK with sales down -24% in 2014. And the continued fall of the Russian economy has left Russian tourists facing costs that, in rouble terms, have doubled over the course of the year: the currency’s decline resulted in a -28% year-on-year decrease in spend in the UK for 2014.

Global Blue UK Country Manager Gordon Clark praised the improved visa application process and the work done by the UK China Visa Alliance but said: “The year just past shows it is more important than ever for businesses in the UK to improve and enhance their international visitor welcome by offering traveller services like Tax Free Shopping, Currency Choice and UnionPay acceptance so that Britain can maintain its competitive edge against other European retail destinations.”

The fall of the Russian rouble resulted in a -28% year-on-year decrease in Russian spend
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