London losing billions of pounds of tourist spending to rival European cities says new report| The Standard
New figures show spending in Paris, Milan and Madrid soars as London flatlines.
London losing billions of pounds of tourist spending to rival European cities says new report| This Standard
New figures show spending in Paris, Milan and Madrid soars as London flatlines.
The tourist tax is costing Britain| The New Statesman
Britain today is missing a golden opportunity – one that would boost public finances, unlock investment across every region, and strengthen the competitiveness of our economy. I’m talking about tax-free shopping.
Tourist tax blamed as foreign holidaymakers shun the UK| This is Money
Labour’s refusal to scrap the hated tourist tax has been blamed as visits to the UK languish below pre-pandemic levels.
More than 500 business leaders have backed a Mail campaign to bring back the VAT refund scheme for foreign visitors, arguing it would encourage tourists to come to the UK.
The number of people visiting the UK was still 1 per cent below 2019 levels last year, lagging behind other European countries with 42.6 million visitors.
UK Retailers Want Tax-Free Shopping Back or Risk Losing Tourists to Europe| UK ETA
British retailers and business leaders are pushing the United Kingdom (UK) Government to reintroduce tax‑free shopping for tourists.
They claim that this approach can increase tourism spending, create jobs, and enhance the country’s ability to attract visitors.
Rachel Reeves must heed this message – it’s an economic necessity for UK| The Express
New figures show that in the UK, our post-Covid tourism recovery has been weaker than elsewhere in Europe. The figures on tourist spending are stark: last year in the UK, it stood at 92% of 2019 levels compared to 106% in Spain and 110% in France.
Gallery chain boss warns tourist tax is forcing wealthy art collectors abroad| This is Money
In 2021, the Government ended the ability for overseas tourists to claim back the 20 per cent VAT levied on shopping, in a move criticised by retailers, hoteliers and hospitality firms for dealing a blow to the economy, with foreign shoppers turning elsewhere for deals.
This secret ‘tax’ is putting tourists off spending their money in the UK| The Standard
Walk down any of London’s shopping streets today and you’ll notice something missing – not the designer shops or beautiful window displays, but the international tourists. The visitors who once spent freely in our stores, stayed in our hotels, dined in our restaurants and enriched the whole economy are no longer coming to our great city.
AIR submits appeal lobbying UK Government for VAT-free shopping| T R Business
The Association of International Retail (AIR) has submitted a growth plan appeal to the Visitor Economy Advisory Council within the UK Government, lobbying for the introduction of VAT-free shopping for all international visitors to the UK.
UK shopper spend in EU “soaring” due to tax-free shopping says retail body| Fashion Network
A renewed call to reinstate tourist tax-free (that is, VAT-free) shopping in the UK comes after the latest data shows domestic shoppers are “deserting” UK stores and “flocking” to the EU to take advantage of… tax-free shopping.
VAT-Free shopping could bring £3.7bn boost says AIR in appeal to UK Government| DFNI FRONTIER
The move would unlock post-Brexit retail potential and boost the visitor economy nationwide
UK lags behind Europe as British shoppers flock to VAT-free EU sales| Retail Gazette
British shoppers are increasingly turning to VAT-free shopping in the EU, with spending surging to £742m last year — more than five times the £147m recorded in 2021, according to data from the Association of International Retail (AIR).
Spending by Britons on VAT-free shopping in the EU rises fivefold| The Times
Savvy shoppers are taking advantage of tax-free shopping abroad after the UK abolishes the perk for overseas visitors here.
British shoppers desert UK high streets and flock to EU for tax-free goods| The Express
UK high streets are losing 2 hospitality venues a day.
Britons desert UK stores for tax-free EU shopping| The Telegraph
British shoppers are ‘taking their business elsewhere’ – and hurting the economy
Britons are racking up VAT-free shopping bill on Continent of £742MILLION| The Daily Mail
British shoppers are deserting UK stores and flocking to the EU to benefit from tax-free shopping.
Restoring VAT free shopping will deliver £3.7 billion boost say business leaders | The Standard
Abolishing the tourist tax will draw in millions of visitors from across the EU argue the Association of International Retail
Ministers urged to let EU visitors shop tax-free | The Times
Report claims that if VAT rebates scrapped in 2021 were restored, Britain could unlock a potential market of 450 million visitors and create over 73,000 jobs
UK Retailers Demand Return of Tax-free Shopping in Tourism Plan | Bloomberg
UK Retailers are renewing efforts to persuade Chancellor of Exchequer Rachel Reeves to bring back tax-free shopping for tourists, as the government prepares to set out its plan to boost the so-called visitor economy.
[CityAM] Ministers urged to reinstate tax-free shopping to deliver Brexit boost
Ministers have been urged to reinstate tax-free purchases for international visitors to make the UK a ‘global shopping capital’ and help the country benefit from its position outside the EU.
[Daily Mail] Scrapping ‘tourist tax’ could unlock a £3.7billion Brexit boost, ministers told
More than 400 business leaders have backed a Mail campaign to bring back the VAT refund scheme for foreign visitors, arguing it would encourage tourists to visit the UK.
In a fresh plea, the Association of International Retail (AIR) has told the Government that scrapping the levy would make the UK ‘the best place in the world for shopping’ and support at least 73,000 new jobs in a Brexit victory.
[RetailWeek] Restoring Tax-free Shopping would deliver multi-billion pound sales boost
The UK economy could gain an extra £3.7bn a year and create more than 73,000 new jobs if tax-free shopping was reinstated for tourists.
[The Standard] Luxury, tax-free shopping should come back to London — Labour make it happen
July 11th
Caroline Rush
“The data is clear. Research by the Association of International Retail shows that in addition to the £10 billion in tourism spend, the return of VAT-free shopping would help contribute to the wider economy — to the tune around £4 billion in GDP annually.”
CEO Paul Barnes’ letter to The Times on tax-free shopping
Paul Barnes
The decision to end tax-free shopping was based on incomplete and inaccurate Treasury forecasts in 2020 that were never certified by the Office for Budget Responsibility and have now been proven wrong by all the data since international travel returned in 2022.
[The Times] The Times view on tax-free shopping: Vuitton, Versace and VAT
July 9th 2024
“If Rachel Reeves is looking for ways to boost growth, there is an easy one to hand: remove the tax on goods bought by foreigners that the government imposed when Britain left the European Union.”
[The Times] Restore tourist tax break to boost retail, demands fashion body
Isabella Fish
The scrapping of VAT-free shopping for tourists is having a “significant impact” on British retail and hospitality, an influential trade body has warned.
AIR’s response to the 2024 GE results
Association of International Retail stands ready to work with the new Government and Parliament.
The international visitor economy is the 3rd largest export sector in the UK. Our global leading shopping offers and experience continues to draw international visitors to our high streets and city centres, and, particularly, stimulate spending.
The sector contributes £80bn to the UK economy, supporting 1.5 million jobs across the country. Before pandemic, it was one of the fastest growing sectors in the UK, bolstered by the tax-free shopping scheme in place at the time.
AIR’s top priority is to elevate TFS to a government priority. Its contribution to economic growth was unfortunately dismissed by the last government on forecasts now shown by overwhelming evidence to be incomplete, inaccurate and unstable without proper scrutinies from the OBR.
To unlock the significant potential of the sector, AIR and our members look forward to supporting Labour’s mission driven growth agenda and collaboratively exploring measures to foster sustainable growth within the sector and across the country.
[The Times] Ending duty-free is a luxury Britain’s craft workers can’t afford
Jim Armitage
From Bremont to Mulberry, skilled staff in the UK’s high-end workshops are feeling the pinch as tourists rein in their spending on the high street.
[The Times] In Paris with the savvy shoppers spurning Briain over duty-free
Dominic Hauschild
The post-Brexit policy has put tourists off shopping in the UK. The traffic is all the other way as France makes it easy to claim back tax
[The Times] The duty-free rules deterring tourists — and Sir Paul Smith’s call for change
Jim Armitage
May 11th
From Mayfair to the Oxfordshire fashion mecca of Bicester Village, tourists have to pay VAT at 20 per cent. Many shop in European cities instead
[The Times] Britain shunned in favour of VAT-free shopping abroad, says Superdry founder
Isabella Fish
May 2nd
Julian Dunkerton says not reinstating the UK’s tax relief scheme is a “self-inflicted wound”
[The Times] The Times view on tax-free shopping for tourists: Hey Big Spender
May 1st
Britain is losing out to France and Italy after abolishing VAT-free luxury shopping
Britain’s dying high streets: How almost TWENTY per cent of stores are lying empty in towns like Wigan as chains including M&S, B&M and Next shut up shop amid dire warnings they may never recover
Mark Duell
04.28.23
London’s Oxford Street has also been hurt by economic hits such as the coronavirus crisis, with major brands including Topshop, Debenhams and House of Fraser all closing branches.
Many vacancies in the capital’s West End are now filled with American candy stores on short term leases.
Experts said retailers were being ‘cautious and biding their time’ over opening new stores but also pointed out that the overall vacancy rate in Britain was 0.3 percentage points better than the same period last year.
It comes amid continued concerns over the future of UK high streets which have been crippled by competition from online retailers and out-of-town retail parks.
To read more, please click here.
Coronation weekend set to deliver £50m boost for West End
The Retail Gazette
Georgia Wright
04.28.23
King Charles’ coronation bank holiday weekend (6-8 May) is expected to generate up to £50m for London’s West End retail and hospitality businesses, according to estimates from the New West End Company (NWEC).
NWEC chief executive Dee Corsi said: “Uniquely British events, such as The King’s Coronation show our capital at its very best. We’re expecting a flood of domestic and international visitors drawn by the chance to be part of history.”
“The West End’s recovery is on track, but in order to ensure it remains globally competitive, the UK needs to increase its appeal to high spending international visitors. We strongly encourage the Government to consider low-cost growth measures, such as a reconsideration of the abolition of tax-free shopping and an extension of Sunday Trading Laws, to guarantee the long-term success of Britain’s tourist economy.”
To read more, please click here.
‘Slash taxes or tourists will shun the hotspots’
The Times
Isabella Fish & Mehreen Khan
04.27.23
Last autumn, when Jeremy Hunt said he would keep the 20 per cent levy in place, the Treasury estimated that the so-called tourist tax brings in about £2 billion a year to the exchequer.
But the decision to scrap tax-free shopping has had significant implications for the likes of Harrods, Selfridges, Liberty, and Fortnum & Mason all popular tourist hotspots.
A study from Cambridge University’s Centre for Economic and Business Research, commissioned by Global Blue, found that tax-free shopping in the UK increased spending from non-EU visitors by £21.80 each, resulting in a total increase of £265 million.
The UK’s tourism tax did little to deter a record number of American visitors to the UK last year, who made the most of the sliding value of the pound against the dollar.
To read more, please click here.
Tax-free Shopping Campaign Media Coverage
- The Telegraph - Britain losing £750m from Chinese holidaymakers because of tourist tax. [03.09.23]
- Daily Mail - Small businesses call on the government to scrap the tourist tax amid fears the UK could miss out on a Christmas shopping rush. [ 28.08.23]
- Retail Gazette - The real impact of scrapping tax-free shopping: Is change needed? [25.08.23]
- Daily Mail - The UK is missing out on a spending boom from Middle Eastern shoppers as visitors from Arab countries head to Rome and Paris to splash their cash tax-free, figures reveal. [ 25.08.23]
- The Telegraph - Tourist tax forcing US shoppers to abandon London. [14.08.23]
- Daily Mail - Retailers renew their plea to the Government to scrap the UK's tourist tax after China lifts its Covid-era ban on group tours of Britain. [11.08.23]
- Daily Mail - Zut alors! French luxury shops cash in as shoppers snub the UK over the controversial 'tourist tax'. [06.08.23]
- Daily Mail - Senior Tory MPs urge Chancellor Jeremy Hunt to launch assessment of tourist tax after research suggested scrapping the levy could give Britain a £ 10 billion boost. [06.08.23]
- The Times - Tourism tax takes its toll on Mulberry [05.08.23]
- Daily Mail - The UK could see a £5 billion Brexit boost if the controversial 'tourist tax' is scrapped, analysis finds. [02.08.23].
- The National News - UK 'tourist tax' has deterred two million visitors, report finds. [02.08.23]
- Evening Standard - Scrap the tourist tax and entice global shoppers [01.08.23]
JULY
- Daily Mail - Tourist tax report is a shot of common sense. [31.07.23]
- Daily Mail - Scrapping tourist tax 'would boost the economy by £10BILLION, support jobs and provide net gain to the Treasury' [30.07.23]
- Daily Mail - The tourist tax affects every high street in Britain... The case for scrapping it is overwhelming, writes ANDREW HINDS. [31.07.23]
- The Times - Tax-free tourist shopping ‘could boost the economy by £10bn’. [31.07.23]
- Fashion United - 350 Business leaders join call on government to reintroduce tax-free shopping. [31.07.23]
- Retail Gazette - Data: ‘Tourist tax’ costing UK £10.7bn in lost GDP & deterring 2m tourists a year. [31.07.23]
- The Stage - 'Tourist tax' losing UK two million overseas visitors a year – report. [31.07.23]
- Fashion Network - Tourist tax; Frasers buys more Boohoo; John Lewis adds key exec; Superdry new COO. [31.07.23]
- Forbes - Scrapping Tax-Free Shopping Is Costing Britain $14 Billion In Lost GDP, Says Report. [31.07.23]
- The Evening Standard - London bosses ramp up calls for Jeremy Hunt to axe ‘tourist tax’ making Paris, Madrid and Milan ‘winners’ [26.07.23] .
- Retail Gazette - Harvey Nichols CEO warns UK will ‘lose another summer’ in absence of tax-free shopping [24.07.23].
- Fashion United - Harvey Nichols CEO calls for return of tax-free shopping for tourists [24.07.23].
- City AM - The Notebook: Neil Clifford on dyslexia, profit with purpose and the greatest American asset [24.07.23].
- The Daily Mail - Visits to Oxford Street - Britain's busiest high street - plunges by nearly a fifth as plight fuels calls to ditch tourist tax [23.07.23].
- The Telegraph - France has been ‘really clever’ at luring tourists away from London, warns Harvey Nichols chief [23.07.23].
- Women’s Wear Daily – Lawmakers to debate return of tax-free shopping in the U.K. [20.07.23].
- Fashion United – Parliament sets date for debate on tax-free shopping [20.07.23].
- Daily Mail – Is the Chancellor finally listening to businesses? MPs to debate axing Tourist Tax in partial victory for companies campaigning for change [20.07.23].
- WWD - Lawmakers to Debate Return of Tax-free Shopping in U.K. [20.07.23]
- Drapers – Tax-free shopping parliament debate data revealed [20.07.23].
- Fashion Network – UK MPs to debate tourist tax issue in Parliament [20.07.23].
- Retail Gazette – MP to debate tax-free shopping in parliament [20.07.23].
- The Evening Standard - Luxury goods sector sounds alarm over hit from loss of VAT-free shopping [19.07.23].
- Priti Patel leads dozens of MPs and peers calling for Rishi Sunak to scrap the controversial 'tourist tax' [18.07.23].
- Mail Online – Thousands of jobs at risk across Britain as hotels and businesses reveal slump in overseas visitors after tax-free shopping scrapped by the Government [16.07.23].
- Head of British Chambers of Commerce believes 'door is ajar' for Government to scrap tourist tax after she lobbied a key adviser to Rishi Sunak [16.07.23].
- The Telegraph – Britain needs rich foreign visitors more than ever – the tourist tax is a disaster [15.07.23].
- The Times - Burberry fears downward trend as tourists shun London stores [14.07.23].
- The Evening Standard – Scrap the ‘Tourist Tax’: Brands investing in Britain deserve London at its most competitive [13.07.23].
- The Mail Online - 'Absolutely no question' tourist tax is holding back economy, warns Watches of Switzerland boss Brian Duffy [13.07.23].
- The Mail Online - How London's Oxford Street went from famous shopping destination to a 'national embarrassment' filled with tacky sweet shops [13.07.23].
- Property Week - Government must act to improve London tourism [06.07.23].
- The Stage – Ditch damaging ‘tourist tax’, say West End theatres and producers [05.07.23].
- The Daily Mail - Britain floundering as tourist tax bites [03.07.23].
- Heathrow Airport – Investor Report June 2023 [30.06.23].
- The Times – Tourist tax is hitting sales, says Mulberry [28.06.23].
- City A.M – Brands in London “suffering”: Fresh calls to scrap ‘tourist tax’ amid Mulberry losses [28.06.23].
- This is money - Mulberry profits slump as end of VAT-free shopping and tough economic conditions hit handbag firm's UK sales [28.06.23].
- Vogue Business – Lack of tax-free shopping stunts Mulberry’s UK growth [28.06.23].
- The Courier – Mulberry profits fall as UK sales struggle amid tourist tax hit [28.06.23].
- Fashion Network – French Luxury retail: store openings and property investments soared in 2022 [29.06.23].
- City AM - The Notebook: Sir Rocco Forte on the hated tourist tax, counteracting climate hysteria and Boris Johnson’s legacy [26.06.23].
- Top fashion brand to the stars lived by Dua Lipa backs demands to scrap the tourist tax [25.06.23].
- Andrew Lloyd Webber joins clamour to ditch the hated tourist tax as he adds his name to more than 320 business chiefs heaping pressure on the Chancellor [25.06.23].
- Mail Online - Scrap the tourist tax, Chancellor! More than 300 high street giants call on Jeremy Hunt to reinstate tax-free shopping for overseas tourists - supporting our campaign to give the economy the boost it so desperately needs [23.06.23].
- The Evening Standard – London roars back as businesses renew call to scrap tourist tax [22.06.23].
- The Evening Standard – Retail Friendly Oxford St Deal Struck [15.06.23]. [IN PRINT]
- Westminster Extra - ‘Oxford Street district’ prepares for its latest face-lift [16.06.23].
- Business Plus – Heathrow calls for tourist tax to be scrapped [14.06.23].
- The Daily Mail – Heathrow joins calls to bring back VAT-free shopping for tourists: Visitors spending double in France and Spain [13.06.23].
- Retail Insight Network – Retail royalty: unveiling London’s opulent realm of luxury shopping [13.06.23].
- Vogue Business – British Fashion Council issues call to arms as industry faces ‘severe challenges’ [09.06.23].
- The Evening Standard – Chelsea landlord Cadogan toasts growth as CEO calls for rethink on ‘tourist tax’ [07.06.23].
- On London – If VAT-free shopping returns it must benefit those who make London special [07.06.23]
- Fashion Network – New official figures show UK tourist visits still well behind 2019 [30.05.23].
- City AM – Scrap the tourist tax hurting our hospitality businesses or lose out to Paris and Madrid [30.05.23].
- The Telegraph – How London became the most expensive city in Europe for tourists [30.05.23].
- The Daily Mail – Britain’s much-hated ‘tourist tax’ is causing foreign visitors to part with less cash when in the UK, experts warn – while spending levels in France, Spain, Italy and Germany soar. [29.05.30].
- The Mail + - Jeweller to the stars: Tourist tax is killing trade in the capital [28.05.23].
- The Times – Call to restore tax-free shopping for tourists [27.05.23].
- The Evening Standard – Tourism to London bounces back…’but we still need VAT-free shopping’ [27.05.23].
- The Evening Standard – Luxury London: Various sectors and companies concerned about tourist tax [27.05.23].
- City AM – Retail sales up in April but analysts warn on implications of further rate hikes [26.05.23].
- The Fashion Network – New data shows end of UK VAT-free shopping again boost Europe [26.05.23].
- The Straits Times – UK losing out on tourism’s high spenders [25.05.23]
- National Association of Jewellers – Tax Free Shopping must return urges NAJ [25.05.23].
- The Evening Standard – Great Portland Estates boss joins call for rethink of tourist tax [24.05.23].
- The Mail Online – Now Harvey Nicks warns Britain is ‘losing its appeal’ as a shopping destination as visitors are deterred by the tourist tax [23.05.23].
- The Industry Fashion – It’s time for a tax-free shopping U-turn, Mr Sunak [23.05.23].
- The Times – U-turn hope on tax-free shopping boosts retailers [22.05.23].
- Forbes – Burberry Reigns in China But Slams UK Government Over Tax Free Shopping [19.05.23]
- LBC Radio – Nick Ferrari Show with Paul Scully MP [18.05.23]
- The Financial Times – Burberry warns UK losing ground to Europe after loss of tax break [18.05.23]
- The Telegraph – British shoppers are swapping London for Milan, says Burberry [18.05.23].
- The Mail Online – Minister breaks cover and calls for ‘tourist tax’ to be scrapped and admits ‘hundreds of millions of pounds’ are being lost by scrapping VAT-free shopping for international visitors [18.05.23].
- The Times – VAT’s not the way to do it, says Harrods [17.05.23].
- Retail Gazette – Harrods boss tells government to ‘stop burying its head’ and bring back tax-free shipping [17.05.23].
- Financial Accountant – Is the UK worse off since removing Vat refunds? [17.05.23].
- Evening Standard – Sunak’s silence on tax breaks for tourists is riling businesses [17.05.23].
- The Times – Call to revive tax-free shopping for tourists from head of VisitBritain [16.05.23]
- The Daily Mail – Trade minister appeals for retail bosses to share data on how hated ‘tourist tax’ is damaging Britain [16.05.23]
- Evening Standard – Minister calls for more data ahead of decision on ‘tourism tax’ [16.05.23].
- The Times – Minister mulls impact of tourism tax as demands grow for U-turn [16.05.23].
- The Times – Luxury goods trade body Walpole urges a return to tax-free shopping [16.05.23]
- Silicon - Global Blue Releases the Monthly Tax Free Shopping Business Update for April 2023 [11.05.23].
- The Scotsman – Chancellor must reverse decision to end tax-free shopping for visitors to UK [11.05.23].
- CGTN – UK businesses urge PM to reinstate tax-free shopping for overseas visitors [09.05.23]
- Drapers – Coronation boosts consumer confidence over bank holiday weekend [09.05.23].
- BBC South East Today – Evening News [03.05.23] Relevant feature starts at 07:15.
- The Mail Online – Tourist tax ‘deterring investment in the UK’: King Charles’ tailor warns absence of VAT-free shopping scheme is causing retailers to shun Britain [03.05.23].
- The Mail Online – Top hotels back call to cut the tourist tax: Savoy and Green King pub chain bosses join clamour to entice more visitors to the UK [03.05.23].
- Retail Times – MRI Springboard: Bank Holiday weekend drives footfall up +12.9% [02.05.23].
- The Express – When did the Civil Service turn into such a bunch of wimps? Asks Ann Widdecombe [02.05.23]