'Big spenders will pick Paris over London if tourist tax remains'

Big spenders will pick Paris over London if tourist tax remains, says Harrods boss

• Harrods boss Michael Ward has urged the Government to scrap the tourist tax
• He said the business is having to work harder than rivals in Paris or Milan

The boss of Harrods has warned that it has to ‘run three times as fast’ to entice Chinese shoppers to return to the UK

The 174-year-old department store is worried it will lose out on a rebound in demand from China after an easing of Covid curbs there earlier this year.

Chief executive Michael Ward said the business was having to work harder than rivals in Paris or Milan to entice wealthy customers to London because of the ‘tourist tax’.

He said: ‘No tax free shopping for overseas visitors is a major disadvantage in the race to attract high-spending international visitors. Without it, we have to run three times as fast in order to just maintain a standing position.’

Michael Ward, chief executive of Harrods, has warned that it has to ‘run three times as fast’ as rivals to entice Chinese shoppers to return to the UK

The business has tried to retain customer loyalty by keeping in touch with its Chinese shoppers over the pandemic. He added: ‘We kept the Harrods brand front of mind through opening the Harrods Tea Room in Shanghai and maintaining our presence on Chinese social channels.’

But every UK business that hopes to welcome returning Chinese travellers was coming up against ‘the obstacle’ of no VAT-free shopping for such visitors.

He said it was hard to judge its effect but pointed to data on shoppers from the US and the Middle East, which show Paris was ahead of London on the recovery of international tourist numbers.

Source: Read Full Article