AIR in the news


Please find below press clips of AIR.

[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.”

[Full article]

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.

[Full letter]

[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.”

[Full article]

[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.

[Full article]

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.

[Full article]

[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

[Full Artticle]

[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

[Full article]

[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”

[Full article]

[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

[Full article]

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

Mail

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.

Nul points! Hated tourist tax will hit visitors flocking to Britain for Eurovision

Mail

Emily Hawkins & Harriet Line

04.27.23

Tourists flocking to Liverpool for the Eurovision Song Contest will not spend as much on shopping as they would have done with a tax incentive, retailers warn.

Bosses say the controversial ‘tourist tax’ is hitting cities around the country – not just London.

The Mail this week launched its Scrap The Tourist Tax campaign – with the support of MPs and 125 business leaders – urging the Government to bring back tax-free shopping.

To read more, please click here.

Coronation weekend to generate up to £50m for West End

Drapers

Sabina Weston

04.27.23

In order to promote the event, the New West End Company has decorated the West End with 247 Union Jack flags, coronation planters, and a series of street installations with the slogan ‘get your royal on’. Coronation-inspired retail and hospitality experiences are also accessible through QR codes displayed across the area.

New West End Company chief executive Dee Corsi said: “London’s West End will be transforming itself in the coming days to mark this historic British milestone.

“There is no better place to celebrate the coronation than London, and no better place to take part than in the West End. From royal-inspired menus in our district’s famous restaurants to family-friendly activities we can promise visitors that the West End will be offering a happy and glorious range of experiences that are fit for a king, yet accessible to all.

To read more, please click here.

Shoppers can hop on the Eurostar to Paris and save a small fortune by avoiding Britain’s outrageous VAT levies

Mail

Beth Hale

04.28.23

Data company Global Blue says tax-free spending by American visitors to the UK has only rebounded to 104 per cent of pre-pandemic levels in the first three months of this year; in France, it is 313 per cent.

In 2019, the UK was among the top-ten most visited destinations in the world, with visitors generating £28 billion of revenue.

Paul Barnes, CEO of the Association of International Retail, says: ‘Britain was the premiership, but we have effectively relegated ourselves to the second division.’

He tells the story of a hotel boss in London’s Park Lane, who welcomed a family from the Middle East, paying for three or four rooms for a two-week stay. For three days of that stay the family went shopping — but not in nearby Harrods or Selfridges or Sloane Street. No, they got on the Eurostar for a three-day shopping spree in Paris.

To read more, please click here.

MPs from all parties call for tourist tax to be axed as Liz Truss and Sadiq Khan claim the fee puts Britain at a ‘competitive disadvantage’ with rest of Europe

Mail

Harriet Line

04.24.23

A cross-party group of politicians joined forces tonight to back the Mail’s campaign to bring back tax-free shopping for tourists.

Former prime minister Liz Truss led a growing clamour of calls from MPs demanding ministers restore the VAT refund for visitors to boost economic growth.

She was joined by Labour’s London Mayor Sadiq Khan and Liberal Democrat leader Sir Ed Davey, who said it would ‘turbo-charge Britain’s high streets’.

To read more, please click here.

Sunak accused of making UK the least attractive place to shop in Europe

iNews

David Connett

04.25.23

The Prime Minister’s bid to woo UK business misfired when a leading executive accused him of a “spectacular own goal” by imposing VAT changes on tourists after Brexit.

Gerry Murphy, boss of fashion house Burberry, told the Prime Minister that his move to scrap the VAT refund for tourists has made Britain the “least attractive” shopping destination in Europe.

He was speaking at a Business Connect conference in London, organised by the Government in a bid to improve its relationship with business.

To read more, please click here.

Harrods rages as Paris poaches London’s shopaholic elites

The Telegraph

Matt Oliver; Hannah Boland and Daniel Woolfson

04.27.23

The year is 2017 and the tills are ringing in Bond Street’s jewellers, fashion retailers and watch shops like never before.


A record number of brands are rushing to open stores across central London to serve throngs of tourists, prompting researchers to crown the city as the “world capital” of luxury shopping.

To read more, please click here.

Time to scrap the ‘Tourist Tax’ and get Britain booming again: Business leaders call on Chancellor to reinstate tax-free shopping for overseas visitors 

Mail

Harriet Line & Hugo Duncan

A coalition of business leaders today calls for the return of tax-free shopping for overseas tourists.

In a letter to the Chancellor, scores of retail, hospitality and tourism bosses warn that removing the VAT refund for visitors has been an ‘extraordinary own goal’.

Reinstating it would be a win both for business and the taxpayer, they say, with research suggesting it could bring a multi-billion-pound boost to the economy.

To read more, please click here.

Brexit is a drag on growth, says Burberry chair, as he attacks ‘own goal’ on VAT

The Guardian

Alex Lawson

04.24.23

The chair of Burberry has called Brexit a “drag on growth” and asked Rishi Sunak to reverse a decision to remove tax-free shopping for tourists that has left Britain nursing the “weakest” Covid recovery among its big markets.

Gerry Murphy, the chair of the £10bn trench coats to handbags fashion house, told the prime minister that a decision to remove VAT refunds in 2020 has hurt the economy and was a “spectacular own goal”.

To read more, please click here.

DAILY MAIL COMMENT: A perverse tax that is stunting UK growth

04.25.23

There are few issues on which Labour, the Liberal Democrats and nearly all Conservatives are in passionate unison. The folly of axing VAT-free shopping for tourists is one.Such disparate political figures as ex-PM Liz Truss, London mayor Sadiq Khan and Lib Dem leader Sir Ed Davey are backing the Mail’s campaign to reverse this perverse and damaging decision.

And at a testy meeting in London yesterday, Burberry chief Gerry Murphy waded into the fray. Confronting Rishi Sunak, he described the VAT extension as ‘a spectacular own goal’.

Other European tourist destinations offer duty-free shopping, he said, placing British retailers at a heavy disadvantage – especially those at the luxury end.Hotels, airlines, hospitality and entertainment venues will lose out as foreign visitors looking for bargains choose Paris, Milan or Madrid over British cities.

To read more, please click here.

Tourist tax means Britain is effectively closed for business to international shoppers

Mail

Paul Barnes

24.04.23

Back in 2019, the UK was among the top ten most visited destinations in the world, which had brought in £28billion of revenue, a figure forecast to rise to a whopping £57billion in 2025.

Covid’s effects were – and still are – nothing less than devastating. But the legacy of the pandemic is not the most pressing problem leading retailers face today. When we ask them what the main factor still inflicting damage on their business is, the answer is clear.

As the head of one major retailer in the West End put it: ‘Ending tax-free shopping has been more damaging to our business than closing for two years during the pandemic.’

To read more, please click here.

Luxury leather brand Ettinger says tourist tax discourages foreign visitors from splurging cash in Britain

Mail

Emily Hawkins

04.24.23

Many tourists visiting the UK for the Coronation will be deterred from splashing out due to a lack of VAT-free shopping, the boss of luxury brand Ettinger has warned.

Ettinger has been producing leather products such as wallets, briefcases and passport holders since Gerry Ettinger founded the business in 1934.

Now his son Robert is worried that visitors will not spend as much during the Coronation bank holiday celebrations due to the ‘tourist tax’.

‘If people are coming for the Coronation, then they will come here [to London]’, he added.

‘But there’s a chance they won’t buy as much when they’re here. People love coming to London but [a lack of VAT-free shopping] will possibly change the amount of money they will spend.’ 

MPs from all parties call for tourist tax to be axed as Liz Truss and Sadiq Khan claim the fee puts Britain at a ‘competitive disadvantage’ with rest of Europe

Mail

04.24.23

A cross-party group of politicians joined forces tonight to back the Mail’s campaign to bring back tax-free shopping for tourists.

Former prime minister Liz Truss led a growing clamour of calls from MPs demanding ministers restore the VAT refund for visitors to boost economic growth.

She was joined by Labour’s London Mayor Sadiq Khan and Liberal Democrat leader Sir Ed Davey, who said it would ‘turbo-charge Britain’s high streets’.

To read more, please click here

Tourist spending down by third as wealthy overseas visitors shun UK over shopping tax imposed by Rishi Sunak when he was Chancellor

Mail

Emily Hawkins

03.11.23

Italy and Spain are much closer to seeing a return to 2019 levels of tourist spending, while in France they are already spending more.

Paul Barnes, head of the Association of International Retail (AIR), said other cities would be ‘rubbing their hands with glee’ over the figures. American and Middle Eastern tourists in particular have returned to rival cities – more than doubling the amount they spend in Paris. But in the UK, spending by US visitors has only recently reached pre-Covid levels.

To read more, please click here.

London fears losing luxury shoppers to Paris and Milan

Reuters

James Davey and Sarah Young

03.15.23

London’s luxury retailers fear the city is losing its pull as a shopping destination, with tourists from the United States, China and the Gulf flocking instead to Paris and Milan where tax breaks still offer a way to cut the cost of their purchases.

With finance minister Jeremy Hunt set to present the government’s budget statement on Wednesday, the industry wants him to reinstate sales-tax-free shopping for overseas visitors, which ended in 2020 when Britain left the European Union.

To read more, please click here.

Spring Budget Does Not Meet London Business Expectations

London Chamber

03.15.23

The London Chamber of Commerce and Industry (LCCI), in response to the Spring Budget, declared that it fell short of delivering optimum value and support for London businesses. With the cost of living crisis, this year’s Budget was a lost opportunity in providing stronger support on energy bills to London’s small and medium sized enterprises (SMEs).

To read more, please click here.

BUSINESSLDN COMMENTS ON THE SPRING BUDGET 2023

BusinessLDN

03.14.23

“It is disappointing that the Government has missed an opportunity to launch an independent review of the benefits of VAT-free shopping – a measure that would more than pay for itself by attracting high spending tourists to the UK and support 78,000 jobs across the country.”

To read more, please click here

Sunday trading laws must be scrapped in the West End

Evening Standard

Dee Corsi

03.17.23

Shopping destinations in New York, Dubai, Milan and Madrid, all enjoy longer trading hours on a Sunday. Sunday trading laws have also been relaxed in certain Paris tourist hotspots. The West End is defined as an International Centre in the Mayor’s London Plan. This status should be more than just a geographical boundary, it should also come with planning and licensing benefits that allows the West End to compete more effectively on the global stage. 

To read more, please click here

DCMS publishes Tourism Recovery Plan update with commitment to “explore measures to mitigate impact of ending tax-free shopping”. 

AIR

03.23

DCMS publishes Tourism Recovery Plan update with commitment to “explore measures to mitigate impact of ending tax-free shopping”.  AIR discusses with tourism officials of need to evaluate impact in order to mitigate

AIR discusses with tourism officials and raise the issue that in order to mitigate the impact, an evaluation of the impact is needed first.

To read more about the Recovery Plan, please click here.

AIR makes formal submission to Labour Party Policy Forum, promoting international visitor economy 

AIR

03.23

Ahead of Labour National Policy Forum, AIR makes formal submission promoting international visitor economy.

In the submission Paul Barnes, chief executive of the Association of International Retail, writes the development of technology will lead to a world where people have more wealth and more leisure time.  To balance Britain’s high-tech economic development a Labour Government should recognise and encourage the importance, global standing and growth potential of Britain’s international visitor sector and its ability to  create wealth everywhere, by everyone, for everyone.

To read more, please click here.

AIR writes to Exchequer Secretary at HMT showing how data undermines HMT impact forecast 

AIR

03.14.23

On March 10th 2023, Exchequer Secretary to the Treasury James Cartlage replied to the Budget Submission on tax-free shopping made jointly by the Association of International Retail and UKInbound restating that the Treasury’s belief that ending tax-free shopping would have a limited behavioural effect on decisions to visit, or spend, in the UK.

AIR wrote to the Minister that a range of data sources are consistently showing significant behaviour change as international visitors are diverting millions of pounds of spending previously done in Britain to France, Spain and Italy.

To read more, please click here.

HMT publishes response to AIR’s Oxford Economics Report 

HM Treasury

02.23

In the WPQ, the Exchequer Secretary to the Treasury James Cartlidge gave response to AIR’s Oxford Economics Report.

In his response, James Cartlidge claimed the Treasury do not recognise these figures. The OBR, using a higher than usual price elasticity of demand to account for VAT-free shopping being targeted at luxury goods, put this figure at 20,000-30,000 for non-EU visitors, which would imply a figure of 60,000-80,000 of total visitors (EU and non-EU). That is about 5% of the report’s 1.6 million estimate. Reflecting this difference in estimates of additional visitors could lead to their report overstating the potential extra revenue by around £1 billion.

To read more, please click here.

AIR assists London Mayor in open letter to the Chancellor calling for Tax-free shopping restoration 

Sadiq Khan

01.31.23

The Mayor wrote to the Chancellor, alongside key businesses and business groups, to urge the Government to reintroduce VAT-free shopping for international visitors as soon as possible.

The Mayor wrote that reintroducing the VAT Retail Export Scheme and airside tax-free shopping will help to increase the number of international tourists who visit London and the United Kingdom, which in turn will provide a much needed boost to businesses and high streets across the country.

To read more, please click here.

Tax-free Shopping Campaign Media Coverage


Please find below press clips AIR and others have contributed to.
AUGUST

JULY 

JUNE
MAY

Media coverage of AIR's tax free shopping campaign


Ending VAT-free shopping 'will hit UK tourism and retail'

Source: BBC News

Chancellor warned scrapping tax-free shopping risks 70,000 jobs

Source: The Guardian

Rishi Sunak faces backlash from retail giants including Selfridges, Harrods and Marks & Spencer over plans to axe tax-free shopping that ‘will drive foreign shoppers to Paris’

Source: The Mail on Sunday

Scrapping VAT relief for international visitors will have ‘untold impact’ on Greater Manchester economy, industry leaders warn

Source: Business Live

News on AIR's COVID-19 support


The Chancellor has announced an extension to the furlough scheme until October and more flexibility and some employer contribution from August

Click here to read

In response to this, Paul Barnes, CEO of The Association of International Retail said: “Covid-19 is financially impacting many sectors, but none more so – and none will suffer for as long – as those dependent on international visitors.  We are pleased that our campaign for greater flexibility around part-time furloughing has been successful so far, but we’re concerned that the Government’s support may stop abruptly in October, before overseas visitors return in meaningful numbers.  Cutting the cord too soon will not just be catastrophic for retailers, theatres, hotels and their associated businesses – its cumulative effect will risk London and the UK’s position as a leading global destination.  We await further detail later this month and will continue to campaign for the support needed by the international retail sector, otherwise we risk seeing some of our historic businesses shutting up shop for good.”

AIR Briefing: Continuing business support for companies with significant sales to international visitors

Nickie Aiken MP's letter to UK Chancellor of the Exchequer Rt Hon Rishi Sunak MP

Tory MP calls on government to extend job retention scheme

Source: City A.M

Click here to read

Pre-lockdown COVID-19 response

Now updated and incorporated in the AIR, New West End Company and Walpole International Retail Campaign

Click here to read