Reading this morning that we’re once again teetering on the brink of recession and I can’t help but feel frustrated that this could potentially be avoided or at least made easier to recover from if the UK brought back tax free shopping to start luring the overseas tourists back.
I have a friend who works for Selfridges and they are struggling at the moment due to both the domestic economic situation and also the fact that tourists are shopping in Europe instead for expensive items such as jewellery, fashion and handbags. It’s a massive draw for rich tourists who really will opt for Paris over London if it means they save thousands on their shopping sprees.
Tax free shopping not only means big money in the tills of retailers but also in hotels and other hospitality areas in the cities and tourist hotspots. It would bring a significant boost to the high street and would offset the fact that UK Nationals are also opting to shop in Europe for luxury items because they too are eligible for tax free.
Yes the stores may be busy now but many are not achieving the figures from last year and I suspect once January comes there’s going to be one hell of a slowdown as the bite from the financial crisis takes hold. The return of international tourists spending on luxury goods would have ensured it wasn’t all gloom and doom for retail.
If anyone can shed any light onto why the government refuses to acknowledge this glaringly obvious money maker I’d be interested to know because I really don’t see any benefit to us not offering it.