UK. Global Blue has launched a manifesto backing UK government plans to digitalise the country’s tax free shopping system.
The tax free shopping provider’s 16-page plan aims to encourage growth in the number of stores participating in the system and to explore every element of the tax free shopping journey for improvements.
Global Blue has forecasted that a digital update in the current tax free shopping system would bring “significant economic benefits to the UK, including a rise in inbound tourists, more annual international spend and an increase in jobs, all of which will contribute to a predicted increase to the UK’s GDP (gross domestic product)”.
The digitalisation plan was announced by Chancellor of the Exchequer Phillip Hammond in the Autumn Statement last week.
Global Blue noted that tourists visiting the UK currently have to use a paper-based system to claim back their tax, which it said was “time-consuming and has potential for fraud – both of which devalue the UK’s tax free shopping offering”.
It has proposed eight key points it said captures the main benefits of implementing a digital system:
- More shops offering tax free shopping
- More use of tax free shopping as an attraction when marketing Britain abroad and at home
- A more efficient and secure tax free shopping system
- The best customer experience in UK shops for international tourists
- A better customer experience when leaving the UK
- Fewer opportunities for fraud
- Clear and simple coordination with Europe following the break from the EU
- Constant improvements to keep up with international competitors
Global Blue noted that the UK had experienced “a successful summer of tourists taking advantage of the attractive exchange rates due to the weakened pound post-Brexit”. This has resulted in a significant increase in international tax free spend throughout the months of July, August, September and October, with year-on-year increases of +7%, +37%, +18% and +41% respectively.
“Most of the world’s top tourist destinations offer tax free shopping and their numbers are increasing every year. To remain competitive with tourist destinations in Europe and throughout the world the UK has to have a strong and effective tax free shopping system,” said Global Blue UK & Ireland Managing Director Gordon Clark.
“With 82% of leisure visits and 64% of all visits to the UK involving shopping, we are calling upon retailers across the country to encourage growth in the number of participating stores throughout the UK. Together, government, retailers and refund agencies can revolutionise tax free shopping in the UK and give Britain’s economy a much-needed boost.”
Global Blue said it was commissioning new research into the economic costs and benefits of tax free shopping. “The tourist industry accounts for 9% of the whole of the UK’s GDP, with a value of £126.9 billion; £24.2 billion of which is generated by inbound tourism,” said Clark.
“Offering tax refunds makes great economic sense – it allows a country to compete with rival destinations for that valuable tourist spending. The variety, quality and cost of tax free shopping are major elements of our country’s appeal to international tourists giving us a competitive advantage, particularly over our European neighbours.”
