Retail VAT refund specialists Global Blue are reporting ‘a wave of income from tourist spending’ thanks to increased tourists attracted by the weak pound, following its decline after the Brexit vote in the UK.

 

Global Blue points to a 7% increase in UK international Tax Free Shopping spend in July, as year-to-date results apparently show that Asian nations and the US are mostly responsible for the positive cash injection.

 

Japan, Indonesia and the US were the visiting nations that accounted for the biggest increase in UK International Tax Free spend for July. Despite Japan’s economic woes, spend by Japanese visitors was up 96% in the UK compared to July 2015, while travellers from Indonesia spent 88% more than last year on International Tax Free shopping.

Chinese tourists’ International Tax Free Shopping spend in the UK was up just 6% for July, but the nation still accounted for the largest portion of spend overall, with a 32% share of the total spend.

 

 

Although the number of transactions made by Chinese travellers in the UK was down -6% last month, average spend for July increased by 13% to £840 per transaction, showing the interest for Chinese travellers to visit the UK to shop remains strong.

In a statement today, Global Blue said: “Travellers from the US – who in July were the second largest nationality shopping Tax Free in the UK, with a 7% share of the total spend – also capitalised on the Great British Pound to United States Dollar exchange rate.

 

“This led to their sales in store from Tax Free Shopping increase by 46%, driven by a 20% increase in their number of Tax Free Shopping transactions, and a 22% increase in their average spend to £734 in the UK.  Hong Kong travellers followed closely in third position with a 6% share of total spend in the UK and a 29% increase in their sales in store.

 

“Furthermore, the smaller growth in July from Middle Eastern visitors – Qatar at +29% and UAE at +4% – is due to Ramadan’s late calendar start this year, which is set to contribute to a strong August. Despite this, Qatar remained the nation with the highest average spend per transaction for July, at £1,642.”

While the weaker pound following the UK/EU referendum was initially unwelcome news for some, the company adds that it has proved perfect timing for tourists visiting the UK with Gordon Clark, Managing Director UK and Ireland for Global Blue adding: “The cash injection we have seen off the back of this has been hugely beneficial for our tourism economy.

 

 

“As the pound still fluctuates, we hope the flurry of tourist activity to the UK has inspired others to follow suit and visit and shop in the UK, where they can see a large discount from exchange rate benefits, but also from Tax Free Shopping through Global Blue.”

“Although Japan and Indonesia account for just 1% and 2% of total International Tax Free shopping in the UK, it is positive to see the increase in their spend, alongside the other top visiting nations like India and Thailand.  It is reassuring to see that the demand for British quality, service and shopping remains strong and is currently outperforming the rest of Europe.”