Global Refund Index June results: a fragile recovery in tourist spending

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We are pleased to bring you the continuation of the Global Refund Index of spending by travelling shoppers

In an exclusive alliance with the leading tax refund service provider for retailers - Global Refund - TRW will be publishing more regular updates on trends for the top 15 spending nationalities.

The data is based on actual sales data recorded by 130,000 retail outlets in 28 countries, consisting of the EU plus South Korea, Singapore and Argentina. Each month we will be publishing data on the spending trends for travelling shoppers across these countries.

The table below shows travel shopping trends for the ten major nationalities visiting the countries of the Global Refund system. This month's figures demonstrate clearly how hard September 11 hit the travel shopping of US nationals. Their spending for the first six months of 2002 remains 20% below last year's level with the decline actually increasing in June. Continued and severe recession in the Japanese consumer segment is still evident with their spending down 23% on last year.

Looking back to August 2001 traveller tax refunds, and spending, were running 13% higher than 2000. Then figures fell by 8% in September 2001 and bottomed out in November at over 25% below the previous year. Since then Global Refund says a recovery has been clearly visible but erratic. By February 2002 figures posted slight growth, rising to a level of 6% growth in May. This month the trend appeared to worsen again as refund claims slipped to register a 10% decline compared to June 2001.

Shopping by Japanese travellers has been declining steadily over the past two years, from 19% to 15% of all sales in store (SIS) under the tax refund system. Nevertheless Japanese remain the most important nationality and there are very good signs in the spending of visitors from China, Korea, Russia and Indonesia.

• For more information about the Global Refund service for retailers link to www.globalrefund.com