UK Tourism Struggles as Non-EU Spending Lags, Retail Urges VAT Exemption Revival
The UK's tourism sector is facing challenges as spending by non-EU visitors remains at 75% of pre-pandemic levels, while other European countries see record surges. The retail industry is urging Chancellor Rachel Reeves to revive the VAT exemption in her November Budget to boost competitiveness and visitor spending.
The UK is increasingly dependent on American tourists, despite growth lagging behind other European markets. High-spending visitors from the Gulf have significantly reduced their spending since the VAT exemption was axed in 2021. Britain is estimated to be losing billions of pounds annually due to the loss of international tourist spending, with approximately £2 billion missed last year alone.
Critics argue that the tax change is driving luxury shopping and related economic benefits overseas. Several local councils are proposing 'tourist taxes' - nightly charges on hotel and B&B stays - to make up for the lost revenue. The retail industry is calling for Reeves to reinstate tax-free shopping for international visitors, potentially generating billions for the Treasury.
With non-EU visitor spending at 75% of pre-pandemic levels, the UK's tourism sector is feeling the pinch. The retail industry is urging Reeves to revive the VAT exemption in her Budget to boost competitiveness and visitor spending, potentially generating billions for the Treasury and preventing further losses to rival European markets.
Read also:
- Strategizing the Integration of Digital Menus as a Core Element in Business Operations
- Financial Actions of BlockDAG Following Inter and Borussia Agreements: Anticipating Future Steps
- International powers, including France, Germany, and the UK, advocate for the reinstatement of sanctions against Iran.
- Election contenders in Quebec city council elections believe they hold promise for success
