UK. International tax free shopping spend in the UK increased +55% in February, according to Global Blue.
It said improved economic and political environments in traditionally top shopper markets China and Russia have seen visitors rediscover the UK as a destination, helping boost visitor spend for the year so far.
Chinese New Year also contributed to the increase along with the weakened pound – “a drawcard for visitors from America in particular”, Global Blue said. “The optimism fuelling the growth of the UAE and Middle Eastern markets has continued to influence visitor spend from these shopper markets in the UK,” it added.
China still holds the biggest share of UK international tax free spend, and average spend per transaction, £922, increased +24% during the month. Russia’s improved economic position has seen it re-emerge among the top ten shopper markets in the UK. Following a volatile 2016, visitor spend in February increased +5%.
The overall +55% increase precedes the triggering of Article 50 and “the opportunity for the tourist economy will be made clear as negotiations for Britain to leave the European Union proceed”, Global Blue noted.
Source: Global Blue
The stellar increase contrasts with February 2016, when international tax free spend grew +3% compared with the same period in 2015.
Global Blue Managing Director of UK & Ireland Gordon Clark commented: “Despite the triggering of Article 50, the long-term impact of Brexit on the retail tourism industry remains unknown. Global Blue anticipates the upward trend for the sector will continue for our current top shopper markets China, the UAE and the USA.
“It is now more important than ever for the UK tourism industry to collectively promote our point of difference to international visitors so we are ready to face the outcomes of [triggering Article 50] in a position of strength.”
