Reintroducing tax-free shopping can only be a good thing for London’s retail and hospitality businesses
Kay Buxton, Chief Executive of Marble Arch London BID, said: “It is critical that the Chancellor offers support to businesses in the hospitality and leisure industry, especially as they tackle the challenges posed by high inflation and soaring energy bills, as well as the threat of a fall in international tourism due to the global recession and the rising cost of living. With Marble Arch being home to 22,000 hotel rooms, and welcoming 1.1 million tourists each year, 62% of which visit from overseas, any fall in international tourism would be a huge blow to our hospitality and leisure businesses.
“But one area which could make a huge difference in preventing a potential drop in international tourism would be the reintroduction of tax-free shopping. New research from the Association of International Retail (AIR), in partnership with Oxford Economics, has found that reintroducing tax-free shopping would bring in an additional 1.6 million visitors in its first full year, spending an extra £2.1bn on shopping and an additional £1bn on other goods and services such as hotels, restaurants and other leisure activities. This means that it would not just be retailers benefitting from the reintroduction of tax-free shopping, but also the UK’s hospitality and leisure industry who would also prosper from this additional spending and rise in international travellers as tourists will need places to stay, eat and visit during their time in the UK.
“If the Chancellor does reintroduce tax-free shopping in his Autumn Statement it will encourage more international visitors back to the UK, and London in particular, which can only be a good thing for the capital’s retail and hospitality businesses who will benefit from the additional spending they are expected to bring. As a BID we will always continue to advocate on behalf of businesses for policies which support all our members and allow them to offer the excellent, world-class service and choice in this key London district.”
