SPENDING POWER: Global Blue, the tax-free shopping agency, said the power of the Middle Eastern shopper is not to be underestimated in the U.K. According to a recent report, the Gulf nations were the top performers in the U.K. so far in a year that has seen a rapid deterioration in Chinese and other tourism.
Gordon Clark, Global Blue’s managing director U.K. and Ireland, said spending by Middle Eastern nations has accelerated amid a “turbulent” tourist market in London. “In April alone, Arabic shoppers accounted for 42 percent of total U.K. sales, showing a 7 percent growth versus the previous year, and bringing the spotlight to the Gulf, especially as China shows signs of a difficult, declining market.”
Global Blue also said it expects to report a surge in tax-free spending in the U.K. from the pre-Ramadan rush. The annual religious observance is already taking place and will end on July 5. The years 2014 and 2015 saw a rise in tax-free shopping by Middle Eastern countries one month before Ramadan, while the month of June saw growth of up to 66 percent in both of those years.
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According to the report, shopping is a preferred activity of Middle Easter visitors to the U.K. with 56 percent including it as part of their travel plans.
In the period January-April, tax-free spending by tourists from United Arab Emirates rose 24 percent year-on-year; followed by Qatar at 12 percent; Saudi Arabia 7 percent; the U.S. 6 percent, and Kuwait 5 percent. Meanwhile, Nigeria’s tax free spending declined 40 percent while China and Malaysia both fell by 21 percent. Hong Kong retreated 17 percent while Thailand declined 1 percent.
Separately, the retail developer Westfield said it has seen an influx of Middle Eastern shoppers in London and has been catering to a growing demand in special services such as Arabic-speaking concierges, prayer rooms, extended opening hours during Ramadan. They have also been tailoring styling services around cultural sensitivities and preferences and offering same-day delivery to homes or hotels. These customer services will run until September.