6 259
Fashion Jobs
May 11, 2016
Download the article
Click here to print
Text size
aA+ aA-

Global tax free shopping spend sees sharp decline in March

May 11, 2016

Global tax free shopping spend was at its lowest for four years in March 2016, when it declined by 18% year-on-year, according to tax free expert Global Blue.

Chinese lanterns - Global Blue

Results were disappointing compared with the 2% increase reported in February, and even more so when considering that global tax free shopping spend rose by 47% year-on-year in March 2015. Global Blue says the figures are the result of Chinese shoppers spending more due to favourable exchange rates, and over a slightly later Chinese New Year (CNY) holiday, last year.

When aggregating both February and March data for the CNY holiday period, the Chinese spend performance shows a stark contrast of 9% decline in 2016 year-on-year versus +87% growth in 2015. It was affected by geopolitical factors such as the new Schengen biometric visa policies, China’s economic slowdown and the threat of terrorist attacks in Europe.

Total tax free shopping spend in Europe was down 22%. In Asia, spend was down 1% year-on-year, despite the region starting to absorb Europe’s tax free shopping spending, as Chinese globe shoppers increasingly prefer to travel and spend closer to home.

Global Blue predicts that the year ahead will be "challenging" for the luxury industry. The industry expert also stated: "Tourists are still put off travelling to Europe after the terrorist attacks in Paris and Brussels, and the introduction of biometric visas is having a prolonged impact on visitor numbers to the region."

Copyright © 2023 FashionNetwork.com All rights reserved.