EU Tax Breaks "Steal" Tourists Away From UK

Wealthy overseas tourists put off from shopping in the UK by its hefty tourist tax are visiting France, Italy, and other European countries to benefit from Europe's continuing tourist tax breaks, Garfield Myrie reported for BBC News.

While prospects look sunny for European destinations, the outlook is decidedly gloomy for the UK.

European tourist destinations are enjoying a financial boost after attracting wealthy visitors away from the UK by offering a tax break for splashing the cash.

Data from Swiss tourism tax refund company Global Blue suggests international spending in continental Europe has risen sharply since 2019, with analysts estimating the increase to be around 36%.

While prospects look sunny for European destinations, the outlook is decidedly gloomy for the UK.

New data from the New West End Company, a UK business lobby group representing London's premier shopping destination, show that tourist spending in the UK fell by nearly 12% in the first half of 2024 compared with the same period in 2019.

According to many UK businesses, including luxury fashion company Mulberry and department store Selfridges, Europe's tourism hotspots are outperforming their UK neighbors because they maintain a tax break that allows tourists to save 20% on luxury purchases, effectively rewarding them for spending when abroad.