Record breaking tourist spend over Christmas boosts weak year

International spend in the UK hit the highest level on record in December, 2014, according to retail tourism experts, Global Blue.

The festive month came in higher than last year's record, up a further 11 percent on the 40 percent increase seen in 2013 for December, but was not enough to boosted overall growth. 2014 ended with international spend down 3 percent year-on-year, as economic and political factors continued to influence the top spending nations.

However, despite the overall weak year of growth, December's rapid growth demonstrates how the Christmas period has become an increasingly important date for the global shopper's agenda. "2014 was a turning point for how Christmas is a key period for international spend, a trend which we expect to continue," commented Gordon Clark, UK Country Manager of Global Blue.

"Unlike domestic, globe shoppers are not simply drawn by the heavy discounts but also by the added benefit of shopping these discounted goods Tax Free in the UK, at a time when the streets are festively decorated to look their best. In what has been a slower year for international spend, it is encouraging for retailers to see strength over this period."

"In what has been a slower year for international spend, it is encouraging for retailers to see strength over this period"

Visitors from Hong Kong spend the most during December, with growth almost doubling, up 48 percent year-on-year and contributing to the 9 percent growth seen throughout the year as a whole, which helped push their position as the UK top shopper to 11th place. Overall Chinese spend grew 20 percent year-on-year last month, with China becoming the number one shopper group in the UK, representing 25 percent of total spend for 2014, with a modest growth of 6 percent year-on-year.

Middle Eastern nations such as Qatar and Kuwait lead the way for growth in December, up 33 percent and 24 percent year-on-year. Qatari shoppers have been increasingly spending more in the UK, with their average spend per transaction reaching 1,406 thousand pounds last month, due to their growing appetites for luxury brands.

Noticeably, one shopper region to not have reaped the benefit of Christmas is Russia, which has dropped off Global Blue's list of the top 10 spending nations in December. The continual economic crisis has left Russian tourists travelling abroad facing high costs, which have doubled in the course of the year due to the rouble, which has disinclined them to travel and resulted in a 28 percent decrease year-on-year spend for 2014.

VisitBritain predicts that international spend will increase next year to hit 22.2 billion pounds, a 4.5 percent year on year increase. However, the tourism agency warns retailers to be aware the international spend growth is slowing down and will not be the sharp increase witnessed over the past five years.

Global Blue expect Chinese and Middle Eastern shoppers to continue their spend growth as more and more are drawn in to the UK due to the Tax Free shopping appeal. The change regarding visa regulations rules for Chinese combined with new flight routes between the UK and Asian cities has also encouraged more retail tourism from these nations.

"It is more important than ever for businesses in the UK to improve and enhance their international visitor welcome by offering traveller services like Tax Free Shopping, Currency Choice and Unionpay acceptance so that Britain can maintain its competitive edge against other European retail destinations," commented Gordon Clark, UK Country Manager of Global Blue.

"This adds to the important work already being done by the UK China Visa Alliance, helping to improve the visa application process and the work of the ‘Let Britain Fly’ Campaign working to gain agreement from the UK Government to add an additional runway at a London airport which will aid visitors’ travel but tax free services in store are important to provide a superior welcome when they get here."