London Set for Boom in Holiday Shopping, Driven by International Tourists
LONDON —
International visitors will be the engine behind holiday spending in central London, according to a report by New West End Company, which represents more than 600 retail, property and hospitality businesses in the neighborhood.
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The report said festive spending in November and December is expected to reach 1.7 billion pounds, a 3.2 percent increase over the corresponding period last year.
Growth will come from international tourists, whose spend is expected to rise 5.8 percent. By comparison, domestic consumer spend will rise by 1.6 percent against a backdrop of weak confidence, high interest rates, and a new Labour government that plans to raise a range of taxes over the next 12 months.
According to New West End Company, which lobbies for businesses in Mayfair, Soho and Oxford and Regent streets, the weekend of Dec. 7-8 is forecast to be the biggest spending moment pre-Christmas.
Spend in the district is set to fall between 40 million and 50 million pounds during those two days.
Flight bookings to London over the festive period are already 11 percent higher than in 2023, driven by visitors from the Persian Gulf, China and the U.S. In the year to date, international visitors to London are up 9 percent, according to the report.
The district is also expected to benefit from a last-minute gift rush, expected over the weekend of Dec. 21-22.
Dee Corsi, chief executive officer of New West End Company, said “international visitors in particular have been fundamental to the district’s recent performance, but much needs to be done to unlock this demographic’s full spending potential. What we need is a comprehensive, national tourism strategy that secures the inbound tourism economy and returns the U.K. to global competitiveness once and for all.”
New West End Company said its forecast is modeled using proprietary spending data alongside broader, forward-looking economic indicators and international visitor data across the district, which is captured year-on-year.
On a less positive note, New West End Company added that the loss of tax-free shopping in the U.K. cost West End retailers 220 million pounds in the first half of 2024, and 400 million pounds in 2023.
As reported, trade bodies, retailers and brands have been lobbying the government non-stop to reinstate the tax-free shopping program, which was canceled after the U.K. left the European Union. Businesses argue that the U.K. is losing out because tourists are opting to make their big-ticket purchases in Paris or Milan, which offer the shopping perk.