Research
Over time AIR will commission research to support the growth of the international retail sector on issues such as:
- The size, shape and spread of Britain’s international retail sector and its key issues
- International markets and marketing
- International competitor analysis
- Investment and innovation – emerging trends
- Store and international centre best practices
- Detailed research to support policy campaigns
Timeline of Tax-Free shopping campaign
UK falling behind EU rivals on tourist spending after duty chances
Financial Times
Daniel Thomas
07.03.22
Britain is losing its position as the favoured destination for high spending international tourists to the EU after the government abolished tax-free shopping at the start of last year, according to a new study.
Global Blue, the tax-free shopping refund agency, compared the behaviour of Gulf state tourists in the EU in 2019 with their shopping habits last year. It found that about a fifth of those shopping in the bloc in 2021 had previously only shopped in the UK two years earlier, where they spent an annual average of €24,000 each.
Last year, their spending dropped to zero in the UK but reached €22,000 each in the EU. Close to a third of those shopping in the EU in 2021 had previously shopped in both continental Europe and the UK in 2019, but increased their average annual spending per person in the bloc by 40 per cent to €22,000 last year, the study found.
Paul Barnes, chief executive of the Association of International Retail (AIR), will use an appearance before MPs to reinforce the need to bring big spending tourists back to the UK.
“While domestic shoppers are returning strongly to the high street, we are seeing a noticeable absence of high spending international visitors that goes beyond the consequences of the pandemic,” he said ahead of the hearing by the House of Commons Digital, Culture, Media and Sport committee into promoting Britain abroad. “The Treasury must look again at its decision to abolish tax-free shopping,” he added.
To read the full article, click here.
How the UK became the sick man of European tourism
CNN
13/11/21
A spokesperson for the UK’s Association of International Retail told CNN that the axing of the scheme is predicted to lead to a drop of 38% in retail sales to non-EU visitors, compared to 2019 — a loss of £1.2 billion ($1.6 billion) to the economy.
But that’s not all. “There are also likely to be indirect losses as high-spending visitors travel to the UK less often and spend less time here, preferring instead to visit countries where they can buy goods for 20% less than in the UK,” they said.
Visitors from China and the Gulf Cooperation Council countries comprise 4% of visitors to the UK, but make around 60% of tax-free purchases.”
Research shows that over 50% of Chinese visitors and over 60% of visitors from the GCC would reduce the number of times they visit the UK and the length of time they spend here — as a direct result of ending tax-free shopping,” they said.
Read the full article here.
The Importance of Tax-Free Shopping to the UK economy, Jobs and Tax Revenues
You can read the December briefing here.
AIR’s December 2020 Briefing
You can read the December briefing here.
AIR’s response to HMT’s Mythbuster Note
You can read AIR’s response to HMT’s Mythbuster Note here.
AIR’s long briefing
You can read the long briefing here.
AIR short briefing
You can see AIR’s short briefing here.
AIR sends letter to the Chancellor
You can see the AIR letter to the Chancellor signed by 21 senior CEOs across the UK, arranged by AIR here.
Results of the international traveller consumer research and the key figures from the Cebr Economic Research
You can read these results here.
Cebr Economic Research.
Click here to read.
AIR Media Release: Chancellor’s tourist tax raid to cost UK £5.6bn
You can read AIR’s media release here.
AIR’s response to HMRC consultation on the future of tax free shopping
You can read this document here.
Research conducted regarding Tax-Free shopping
AIR's response to HMRC consultation on the future of tax free shopping.
May 2020.
You can read this document here.
Global Blue commissioned research into the economic impact of tax free shopping in the UK, suggesting that for every £1 the Government refunds it gains up to £1.90 in additional tax and savings.
You can read this report here.
Research Library
AIR's response to HMRC consultation on the future of tax free shopping.
May 2020.
You can read this document here.
Post-COVID-19 reopening guide for London's West End. May 2020.
You can read this document here.
AIR has created a detailed plan for 'COVID-19 support for businesses reliant or partly on international visitors'.
You can read this document here.
The international visitor sector is vital for UK jobs and growth.
Visitor numbers grew by 32% to 40.9 million between 2009 and 2019.
Spending grew by 61% to
£28.43 billion.
The sector employs 450,000 people.
“25% of all expenditure by overseas visitors is on the UK’s high streets and in the country’s impressive range of department stores.”
VisitBritain has compiled an extensive research document into the importance of shopping on inbound tourism. Although some years out of date, this comprehensive report is extremely informative for the sector at large.
You can read this research here.
VisitBritain commissioned detailed research by Kantar on high net worth travellers from China, USA and the Gulf. Their research aims to better understand those customers who account for the highest spends during trips to the UK.
You can read this research here.
United Nations World Tourism Organisation publish regular updates on global tourism. In 2020 they forecast a growth of 3% to 4% in international tourist arrivals worldwide in 2020. Their website is full of helpful resources for the international retail industry.
You can read their publications here.
Chinese tourists spend while overseas
2018
2000
(Date source: COTRI)
London and Partners’ report on tourism to London from 2017 predicts a sharp rise in tourism to the capital by 2025. They predict tourism numbers will go from 19m in 2016 to over 40m in 2025.
You can read this report here.
The UK China Visa Alliance’s report looks at how the UK government can take practical steps to make it easier for Chinese people to get a UK and Schengen area visa. This would boost tourism and investment in the UK.
You can read their report here
Percentage of population who own a passport
(Date source: Bain & Company)
Bain & Company’s Luxury Study published in 2018 took a detailed look into the recent developments of the luxury goods industry globally. It highlights the growth of the Chinese tourism market, the younger consumer and changes to retail outlets globally.
You can read this report here.
Vistors to the UK
Oct 18 - 19: (£24,520bn spend)
Oct 17 - 18: (£22,770bn spend)
Oct 16 - 17: (£24,460bn spend)
Oct 15 - 16: (£21,840bn spend)
Oct 14 - 15: (£21,730bn spend)
Marketing Manchester works to promote Greater Manchester as a place to visit, invest, do business, and study. Their Review 2019 document is full of helpful insights alongside key facts and figures that demonstrate the importance of international tourism to the Greater Manchester economy.
You can read this report here.
The Tourism Alliance’s 2019 UK tourism statistics report is very helpful for anyone with an interest in the sector. Its full of easy-to-read facts and figures that demonstrate the importance of this sector to the UK economy.
You can read this report here.
The House of Commons Library have produced their research summary of the UK inbound and outbound tourism industry. They have pulled together lots of important research from a wide variety of sources.
You can read this report here.
Most popular shopping destinations for super rich tourists
(Date source: Bain & Company)
AIR's 2020 'Post-coronavirus retail recovery plan' is a detailed response to the current outbreak, and highlights 5 points to encourage Chinese visitors back to the UK once the virus has been beaten.
You can read this report here.
Oliver Wyman consultants have released a fascinating report on the changing preferences of Chinese tourists.
You can read this report here.
Global Blue commissioned research into the economic impact of tax free shopping in the UK, suggesting that for every £1 the Government refunds it gains up to £1.90 in additional tax and savings.
You can read this report here.
International retail makes a major contribution to the UK economy.
£6 billion spent on shopping by international visitors (2019).
UK’s 12th largest export sector.
120,000 direct retail employees.
Tourist organisation links
The official tourism website for Great Britain.
The Tourism Alliance works to promote all businesses involved in the delivery of tourism, particularly in England.
The leading hospitality trade association in the UK.
London’s international trade, investment and promotion agency.
The official visitors’ website to London.
The official tourist board for Manchester and Greater Manchester.
The official tourist board for Edinburgh.
The trade association representing inboard tourism.
Marketing Manchester is the agency charged with promoting Greater Manchester on the national and international stage.
The UN agency promoting ethical, sustainable and accessible tourism.
Retail organisation links
The trade association for independent retailers.
The trade association for all UK retailers.
The membership body representing 190,000 British businesses.
Revo supports the people and businesses involved in the diverse world of retail property.
The official sector body for over 250 of the UK's finest luxury brands.
