Chinese tax free spending has continued to fall in 2016 as retailers prepare for an increase in visiting shoppers in May and October. Chinese Tax Free Spending dropped into negative growth last month, while 2015 saw an overall increase of 58%.
The UK was hit in the first quarter largely due to a 30% drop in Chinese tax free shopping in March which resulted in an overall 21% decline. While Chinese shoppers account for a fifth of UK tax free shopping, it appears that this market now prefers to indulge in French, German and Italian retail. The average shopping budget per trip to Europe is expected to be €3,544 (25,902CYN) this year.
The fall in sales from visiting shoppers was found to be due to more stringent Schengen Visa demands, an increase in European terror attacks and threats and the later Chinese New Year last year which saw a stellar increase of 122% year-on-year.
May is expected to be the busiest month for travel to Europe, Japan and South Korea, while October will see the highest increase in visits to some Asia-Pacific destinations including Singapore and Australia. These two periods correspond with China’s two major holidays, Labour Day and Golden Week.
(Source: Retail Gazette)