Growth in spend by Thai tax-free shoppers has soared by 68% YTD [January-May 2013] overtaking the Chinese at 39% as the fastest growing international shopper market this year.

 

This is not surprising considering that tax free shopping by Thai residents rose by +38% in the first quarter of 2013 making Thais the sixth largest global shopping nationality trailing the US [previously reported by TRBusiness.com].

 

Visits to the UK from Thai travellers totalled 65,000 in the most recent figures from 2011, up 1% over the past five years.

 

Nearly a fifth of all spend by Thai tourists in the UK is now being spent on leather and travel accessories, up 73% YOY. London and its’ luxury department stores are a key shopping attraction for Thai shoppers with 55% of UK visits taking place in London.

 

GROWING MIDDLE CLASS

According to Tax Free shopping pioneers, Global Blue, a recent burst in travel by Thai tourists comes as a result of a growing middle-class as the growth in the Chinese economy continues to have a ripple effect on South East Asian territories including Thailand, Malaysia and Indonesia.

 

Gordon Clark, UK Country Manager at Global Blue, says: “It is becoming apparent that the relentless boom in outbound travel and spending by Chinese citizens is inspiring a new consumer confidence in other emerging economies, most notably Thailand.

 

“As our Tax Free Spend Index demonstrates from Jan-May 2013, Thai spend has increased as much as 68% YOY and that visitors are spending on average £762 per transaction in store, a 22% increase from last year.

 

SIMILAR SHOPPING PATTERNS TO THE CHINESE

“Capital cities such as Bangkok are already established in showcasing both local and foreign brands, but it is the cache for buying British at UK flagship stores which is at the forefront of the drive to look further afield. In particular, we are seeing that Thai travellers like to purchase leather and travel accessories, as sales in these goods has rocketed 73% from previous years.”

 

Harrods Spokesperson says: “Harrods has seen a marked increase in the number of Thai customers visiting the store with these shoppers becoming amongst our most prominent international visitors.

 

“Their shopping patterns are similar to the Chinese with a desire for well-known superbrands including Chanel, Louis Vuitton and Hermes. Fashion accessories, perfume and cosmetics are amongst the best selling product categories however menswear is becoming increasingly important.”