Pound sterling slump after Brexit boosts tourist spending in UK
A weaker pound in the wake of the EU referendum sees a 7% increase in tax free shopping by overseas visitors from Asia and the US
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Your support makes all the difference.Tourists’ spending has increased significantly following UK’s vote to leave the EU as visitors made the most of the post-Brexit slump in sterling.
International tax-free shopping spending rose 7 per cent overall in July, compared to the same month last year, according to retail tourism analyst Global Blue.
Visitors from Japan, Indonesia and the US accounted for the biggest increase with spending by Japanese visitors up 96 per cent compared to the same period in 2015.
Travellers from Indonesia spent 88 per cent more than last year on tax- free shopping, followed by US shoppers with an increase of 46 per cent compared to 2015.
“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,” Gordon Clark, Global Blue managing director UK, said.
The figures follow previous reports that Britain’s tourism industry could benefit from the Brexit vote in the short term.
Economists from the Office of National Statistics, last week, said that there were signs the steep fall in sterling since the June referendum might have attracted overseas shoppers to the UK.
“There is… anecdotal evidence from respondents suggesting the weaker pound has encouraged overseas visitors to spend. Department stores and specialists retailers like jewellers are among those reporting a good month,” Joe Grice, the chief, economic adviser to the ONS, said.
Swiss watch exports to the UK were more than 13 per cent higher in the month after the country voted to leave the EU than a year earlier, the Swiss watch industry federation reported on Tuesday.
Previous research from Tourism Alliance suggested there were 18 per cent more foreign visitors and 11 per cent more British tourists in London in July compared with the same month in 2015.
Airbnb, an online accommodation website, saw a 24 per cent uplift in London visits in July compared to June.
Sterling has fallen 18 per cent on a trade-weighted basis since last November.
Last week certain London airport bureaux de changes were retuning less than €1 for each pound offered.
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