Tax-free spending by tourists in Britain and other leading retail nations drops for first time since 2009 global financial crisis


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The amount of money spent tax-free by foreign tourists in Britain has fallen for the first time since the global financial crisis in 2009, new figures show.

Experts blamed political unrest and weakened currencies in key nations for the four per cent fall year-on-year for the first six months of the year.

However, Britain is far from being the only country hit by the downturn in tax-free spending by tourists.

Spending down: Tax-free spending has dropped in the United Kingdom for the first time since 2009

Spending down: Tax-free spending has dropped in the United Kingdom for the first time since 2009

Global Blue, which operates 'Tax Free' services in 43 countries around the world, reported a drop in spend across all leading retail tourism destinations for the second quarter of 2014, down three per cent year-on-year overall.

Gordon Clark, UK country manager for Global Blue, said: 'Our figures show that political unrest and weakened home currencies are leaving shoppers from our top spending nations in a position where they are still spending more per transaction than before but are making less purchases than they would have made in the past, resulting in the UK seeing a four per cent year-on-year reduction in the sales in store from Tax Free shopping.

'More than ever now British retailers and hotels need to review their international marketing plans, product range and staff training to ensure they still continue to secure this crucial international spend.'

He said China and Middle Eastern nations have continued to lead spending in the UK, but growth has slowed.

Money woes: Global Blue says tax-free spending is down across all 43 nations in which they operate

Money woes: Global Blue says tax-free spending is down across all 43 nations in which they operate

Chinese spend is up eight per cent so far this year, but much less than the 20 per cent to 50 per cent growth seen in recent years.

Clark added: 'However, as economies begin to recover, we expect to see growth from key nations pick up again.'

Russia has been suffering a weakening economy since the end of 2013, and with the Ukraine crisis making the situation worse, the ruble reached a record low this year.

Clark said Russian shoppers visiting the UK have been left disadvantaged against sterling, resulting in a 20 per cent year-on-year drop in spend seen by Global Blue.



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