Visitor numbers to London are rising, yet the tourist tax continues to quash the benefits, writes New West End Company chief executive Dee Corsi As another London Fashion Week comes to an end – marking its 40th year celebrating London’s creative community and vibrant cultural scene – so does the global spotlight on Britain’s craftsmanship. From tomorrow, fashion followers will turn to Milan and Paris, which, respectively, follow the UK capital as hosts of the industry event. This passing of the baton is a long tradition – but we cannot remain complacent when we observe the same passing of the baton when it comes to consumer spending.
The number of international visitors to London in the six months to June 2024 rose by three per cent compared to the same period in 2019. And yet, spend in the West End – arguably the UK’s biggest retail destination and sartorial home – fell by 12 per cent. The data shows that tourists are increasingly likely to spend in continental Europe, where they can still enjoy tax-free shopping.
Already, we’re seeing a significant shift in visitor behaviour, with VAT refunds in continental Europe surging by 36 per cent in the first half of 2024 compared to the same period in 2019. These are likely to include purchases by Brits, who are now able to take advantage of tax-free shopping on the continent thanks to Brexit – a concerning leakage of already squeezed domestic spend. The last time visitors could meaningfully enjoy VAT refunds in .