Kurt Geiger boss Neil Clifford has warned the loss of tax-free shopping for tourists is having a “massively negative effect” on UK spending.
The retail boss argued tourists had been visiting other countries in Europe to do their shopping since the scheme was scrapped in 2021, The Times reported.
Clifford said: “International tourists, whether it be Middle Eastern or American travellers, are spending less time in London.
“If you go to Milan or Paris or Madrid — my team and I are in those markets often — there’s no doubt they’re busier.”
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The Kurt Geiger boss noted a “real shooting ourselves in the foot strategy” by the previous Conservative government to scrap the scheme.
“It really affected London, but actually right across the UK we saw that negative impact almost immediately. It is still having a massively negative effect,” he added.
Clifford joins a host of other retail bosses in speaking out against the removal of tax-free shopping.
In May, Superdry co-founder and chief executive Julian Dunkerton warned that people were opting to travel to Europe instead of the UK to go shopping following the end of tax-free shopping.
While earlier this year, Heathrow Airport also warned the loss of tax-free shopping was hurting Britain’s status as a global transport hub.
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