The fall in the value of the pound since the Brexit vote has spurred an increase in tourist spending in the UK, new figures have revealed.
According to data from Global Blue, which monitors international travellers’ shopping and spending patterns, there was a 7% increase in tax-free shopping in the UK in July 2016, largely due to a rise in spending from Asian nations and the US.
Visitors from Japan, Indonesia and the US accounted for the biggest increase in UK tax-free spending last month, but China remains the largest international market for duty-free shopping, with a 32% share of the total spending in July. Spending by Chinese travellers in the UK increased 6% last month, while their average transaction value increased by 13% to GBP840 (US$1,098).
Travellers from the US, the second biggest duty-free spenders in the UK with a 7% share, also capitalised on the preferable exchange rate with a 46% surge in sales. Hong Kong travellers followed closely in third position with a 6% share of total spend in the UK and a 29% increase in sales.
Smaller growth from Middle Eastern visitors reflected the timing of Ramadan, although Qatar remained the nation with the highest average spend per transaction, at GBP1,642.
“Though the weaker pound following the referendum was initially unwelcome news, it has proved perfect timing for tourists visiting the UK; enjoying our British leisure, luxury and cultural offering during the summer season,” said Gordon Clark, Global Blue’s managing director for the UK & Ireland.
“The cash injection we have seen off the back of this has been hugely beneficial for our tourism economy. As the pound still fluctuates, we hope the flurry of tourist activity to the UK has inspired others to follow suit and visit and shop in the UK.”
Global Blue said it expects these trends to continue in August and September, as the pound remains weak against other currencies.
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