Global Refund creates new service for Chinese travellers

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Global Refund, the world's leading provider of VAT refund services for travellers, opened its first cash refund office in China, in Beijing yesterday. The new office is expected to generate more business for retailers in Singapore and many European countries where Chinese visitors make up a significant consumer group.

Chinese travellers preferring cash VAT refunds from shopping abroad will now be able to receive either Chinese or US currency upon returning home. Previously, all cash refunds were arranged prior to boarding the plane for the return trip.

Global Refund ceo Per Setterburg commented: "The new Beijing office is in line with our strategy of offering a wide range of refund options to people around the world. We recognise that flexibility is an important factor for many customers when deciding to exercise their refund option. Since more than 72% of people purchasing tax-free goods would like their refund in cash, we expect the new office to effect a significant increase in Chinese spending abroad."

According to Global Refund statistics, Chinese travellers ranked among the top four nationalities for travel shopping worldwide in 2000. Germany, Italy and France were the markets preferred by Chinese customers when measured in both visitor numbers and purchase value. Leathergoods and womenswear were the most-purchased categories of goods for Chinese travellers.

The company also believes there is a vast potential of unutilised VAT refunds around the world. In a survey by Global Refund last year covering a number of European airports, 77% of travellers acknowledged awareness of the VAT refund system. However only 29% had actually received refunds from travel shopping.

• For more information on the Global Refund Index of travel shopping trends in 2000 click here