Global Refund Index: latest 2000 travel-retail survey results

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The latest indicators from the Global Refund Index of spending by travellers show that travel-retail spending in EU domestic stores last year rose significantly in continental Europe.

The results are based on sales data recorded by 130,000 retail outlets in 28 countries, consisting of the EU states plus South Korea, Singapore and Argentina. In an exclusive alliance with the leading tax refund service for retailers, Global Refund, travelretailworld.com will be publishing more monthly updates on spending trends for 15 key nationalities.

One of the most striking trends of the full-year 2000 results is that many travelling shoppers have dropped the UK in favour of France, Italy, Spain and Germany. Overall, the number of non-EU tourist shoppers visiting the UK declined by 3.7%. Their travel-retail expenditure was 2.5% higher in 2000, but fell away abruptly as the year progressed--as January's millennium effect dropped from the figures. This was largely due to the strong pound and media stories of 'rip-off' Britain. In the final quarter of 2000, spending in the UK was 1.3% lower than the same period in 1999, and the number of tourists was 5% down. Luxury or premium retailers also performed better than mid-market brands during the period.

US visitors to the UK remain the biggest spenders with travel-retail spending of £300m ($438m) through the tax refund system in 2000. Other important nationalities are the Japanese who spent £123m ($180m) followed by Saudi Arabians (£77m/$112m), visitors from Hong Kong (£77m/$112m) and Kuwaitis (£65m/$95m). Japanese spending in the UK increased by 6.2% and spending by Hong Kong visitors increased 2.3%, while spending by almost all other nationalities declined.

The UK picture is in strong contrast to continental Europe, however. In Spain travel retail expenditure in 2000 grew by 41% compared with 1999. In Italy growth was 37%, Germany 31% and France 21%. Numbers of non-EU travelling shoppers increased by between 20% and 28% in those four countries. Global Refund UK managing director Ian Yates commented: "The recent easing of the pound versus the euro and the signs that UK retailers cannot afford to raise shop-floor prices significantly may help to paint a more optimistic picture for UK retailing and tourism in 2001."