UK. International tax free spend in the UK grew +14% year-on-year in 2016, according to Global Blue figures.
The company said retailers were “enjoying Brexit’s continued benefit of increased foreign spend due to the fallen pound”. The double-digit growth follows a small increase in 2015 of +2% and a downturn in 2014, Global Blue said.
Visiting shoppers’ average spend increased by +11% for the year. Middle Eastern nations continued to spend the most on average per transaction. Qatari visitors accounted for the highest average spend at £1,695 per transaction, followed by Saudi Arabia at £1,049 and Thailand at £1,023.
December saw +23% growth as Asian and American shoppers in particular took advantage of the favourable exchange rates and the British luxury industry’s festive season offering.
The month also saw the “rise of historically small-spend markets, such as Taiwan, demonstrating the extent of Brexit’s impact”, according to Global Blue. Although accounting for just 1% of total international tax free spend, visitors from Taiwan spent +177% more than in December 2015. Visitors from Hong Kong accounted for 5% of total international tax free spend, with a year-on-year increase of +115%.
Chinese shoppers took up the largest share of UK international spend, posting growth of +46% in December. The USA, the second-biggest spending nation, recorded a +77% increase.
“Although the UK has always been a top destination for global travellers, historically our strong currency has been a barrier for many with a desire to visit,” said Global Blue Managing Director UK & Ireland Gordon Clark.
“The weakened Pound has extended the opportunity to a wider group of travellers who have made the most of the favourable exchange rates allowing them to visit the UK and enjoy our abundance of British shopping and leisure activities at the heart of our culture.
“This exposure and accessibility has been invaluable and the Brexit vote was undoubtedly a key contributor to the industry’s 2016 growth, but whilst we welcome the immediate boost and exposure, we are yet to understand the decision’s long-term implications.”
For 2016, Taiwanese shoppers accounted for the biggest increase in spend of +42%, followed by the USA at +40%.
