A December to remember: Tourist spend up 600% over the decade

Jan. 20, 2012 - PRLog -- December shows a strong 20% uplift YOY  which contributed to an overall increase in tax free spend from international shoppers of almost 600% over the last decade in the month of December (2001-2011).  

Global Blue reports the last decade was one of accelerated growth in spending power on display by international shoppers in the month of December. Tourist spend for December has increased every year, with a massive 50% increase observed between 2009 and 2010. This uplift has been particularly bolstered by the rise in spend from Chinese shoppers tempted by discounted luxury goods.  Global Blue is increasingly seeing an early start to Christmas sales proving a huge draw for international shoppers.

Richard Brown, VP Global Blue UK, which manages in excess of 38,000 shopper transactions each day across 40 markets, said: “December is the most crucial month of the year for retail and an early start to sales across luxury and designer brands whipped tourists into a spending frenzy, providing a welcome buffer against an anticipated dip in Christmas trading. December figures highlight the present wealth and spending power of tourists, particularly Chinese and Nigerian shoppers whose average spend per transaction both grew YOY by 19% in the same period from £614 to £729 and £436 to £517 respectively.”

Global Blue have observed a ‘ripple effect’ of spending patterns from Chinese shoppers filtering across South East Asia with the UK continuing to experience a remarkable increase in shoppers from this region in December. According to Global Blue, tourists from Singapore visited the UK during a month long school holiday spending on average £503 per transaction with total tax free sales increasing by 22% YOY. Shoppers from Thailand were also out in force, travelling around the King’s Birthday public holiday on 5th December, spending on average £671 per transaction in store; an increase of 13% YOY. Thai shoppers in particular are drawn to luxury, picking out big-ticket items while in the UK but keen to stretch their ‘Thai bhat pound’ further by hitting the sales.  

The Middle Eastern market remains vital to UK retailers, particularly the luxury sector, contributing to 21% of tourist spend according to the December Global Blue Tax Free Spend Index. These luxury focused shoppers were welcomed by retailers in deliberately seeking out big ticketed items and spending on average £753 per transaction in store with popular items including jewellery and accessories.

Sales from Nigerian shoppers, who share the Chinese penchant for luxury brands, also increased in December and their presence is only expected to grow as an increased premium on oil fuels growth in the burgeoning middle classes which in turn will increase the number of tourists with the ability to travel and a desire to spend. The December Global Blue Tax Free Spend Index reveals a 41% increase in tax free spend YOY further establishing this oil-rich nation as one of the top five nationalities for spend in the UK.

Sales in store from Chinese shoppers show the most significant growth in December with the Global Blue Tax Free Spend Index revealing a staggering 77% uplift YOY in tax free spend. Boxing Day sales in particular provided a huge attraction and helped fuel a 49% increase in the number of transactions YOY from these luxury focused shoppers. Most popular purchases include designer handbags and fashion items, rarely discounted at home, and an increasing appetite for premium beauty brands. Retailers are expected to clamour for the coveted ‘peking pound’ again in just over a fortnight as Chinese tourists return to the UK for their New Year celebrations on 23rd January, making shopping yet again their number one activity.  


Global Blue Tax Free Spend Index – December 2011
Origin country of tourist   Average spend per transaction in store (£)
Middle East   753
China   729
Russian Fed   763
Nigeria   517
United States   536
Thailand   671
Malaysia   496
Hong Kong   659
Singapore   503
Turkey   613


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For further information – please contact:
Fiona McKenzie or Katie Blake at Rain Communications
Fiona McKenzie – 0207 828 0118 or fiona.mckenzie@raincommunications.com
Katie Blake – 0207 828 0118 or katie.blake@raincommunications.com

Notes to editors
About Global Blue
Global Blue is a traveller services company that makes retail transactions between merchants and their foreign customers, easier and more rewarding for everyone. Having introduced the concept of Tax Free Shopping thirty years ago, Global Blue now offers a wide range of services that help consumers shop and spend wisely when they are in foreign countries, and merchants and banks increase their revenues from the lucrative traveller market.
Global Blue works with over 270,000 of the world’s favourite retailers, shopping brands and hotels in over 40 countries and serves in excess of 38,000 travellers each and every day. The company’s ambition is to become the beacon for international shopping and spending across the globe.
Global Blue’s headquarters are in Nyon, close to Geneva, Switzerland. More information about Global Blue is available at www.global-blue.com