International spend in London returns to strength in 2015

International spend in London is returning to its former glory in 2015 after a slowdown in growth last year, with the West End in particular enjoying the benefits.

Spend in the West End is up 4 percent year on year to date, according to the latest data from Global Blue, following a 3 percent drop year on year in 2014 as global shoppers from key spending nations such as China, the Middle East and Southeast Asia have been seen spending 38 percent more in the city's main shopping district.

Visitors from China retain the top position as top spenders, representing 20 percent of spend and witnessing a 9 percent year on year increase and spending an average of 1,450 pounds per transaction according to the Global Blue Tax Free Spend Index to April 2015. Chinese spend has influenced spend from Hong Kong, which increased a whopping 48 percent year on year with average spend per transaction at 1,280 pounds. Shoppers from Qatar and Saudi Arabia have pushed sales up 12 percent and 28 percent year on year respectively, spending on average 1,906 pounds and 1,495 per transaction. Visitors from the US have led to a 23 percent increase year on year, spending 763 pounds per transaction on average.

International spend in London's West End on the rise

"It is encouraging to see international spend coming back to strength this year, but it is important for retailers to maintain their ambition to maximise the opportunity these top spending shoppers bring and implement services which will continues to drive spend," commented Gordon Clark, UK country manager at Global Blue. "China remains the highest spending nation in the West End, as across the UK, and the appeal of shopping for designer fashion in London has rippled out across South East Asia resulting in huge growth from Hong Kong in particular."

"But this growth could be so much bigger if only the new UK Government would make it easier for these Chinese tourists to visit the UK. This could be achieved by the Government completing their commitments made to improve the visa process and also to allow these lucrative travellers to actual land at one of our main UK airports where we have no extra capacity by committing to build new runways in the South of England at Heathrow and Gatwick," he added.

In the past the luxury stores situated on Bond Street made it the hot spot for international shoppers, but following the host of strong new store openings on Regent Street it become the leader of the growth this year, with Chinese spend on the Regent Street increasing 129 percent year on year to date. Shoppers from Saudi Arabia and Qatar have continued to visit the street, leading to spend rising 51 percent and 41 spend respectively. The street is also increasingly popular with US shoppers, up 40 percent year on year.

Bond Street however remains the top shopping destination for Chinese shoppers, with China representing 23 percent of total international spend on the street, as they are drawn in by the mix of British luxury and international premium flagship stores. The trend has influence Hong Kong shoppers on Bond Street, which have seen a 35 percent increase in spend, followed by the US and Saudi Arabia as the top spending nations, with 23 percent and 12 percent year on year growth respectively.

"In 2014 a record 17.4 million overseas visitors came to London providing an 11.8 billion pound boost to the capital’s economy,"commented Alex Fong, Head of External Relations and Insight at London & Partners, the official promotional company for London. "Growth in overseas visits to London is forecast to continue and iconic shopping locations like Oxford, Regent and Bond Streets are key destinations for those international shoppers who account for 48 percent of all visitor spend across the city. This presents an enormous opportunity for businesses to offer attractive events and services to this important market."