Weak Pound After Brexit Boosts Tourist Spending In UK

The UK experienced a boost in spending by foreign tourists in the month following the Brexit vote, with the weaker pound likely to be the cause, according to new figures.

Visitors to the UK declared 7% more in tax free shopping in July this year, compared to the same month in 2015, according to retail tourism analysts Global Blue.

Spending by Japanese visitors saw the biggest increase, up 96% from the same time last year, while Indonesian tourists spent 88% more than they did in July 2015.

Tax free shopping is a system whereby overseas visitors from outside of the EU can claim back the value added tax (VAT) which they have paid automatically on any purchases made in Britain.

This tax is claimed back at the airport on departure from the country.

Chinese tourists accounted for the biggest amount spent in July, with 32% of the total amount attributed to visitors from the Asian nation.

The average amount spent by tourists from China also increased by 13%.

Ramadan’s late calendar start is thought to be the reason behind a smaller growth in sales to those visiting from Middle Eastern Nations, but the amount spent by Qatari tourists still rose by 29%.

Tourists from Qatar also racked up the highest average spend per transaction at £1,642.

Gordon Clark, Global Blue’s managing director for the UK and Ireland (Other OTC: IRLD - news) , said; “Though the weaker pound following the referendum was initially unwelcome news, it has proved perfect timing for tourists visiting the UK and enjoying our British leisure, luxury and cultural offering during the summer season.

"The cash injection we have seen off the back of this has been hugely beneficial for our tourism economy.

"It is reassuring to see that the demand for British quality, service and shopping remains strong and is currently outperforming the rest of Europe,” he added.