Experience Oxfordshire, the Destination Management Organisation for the county, has welcomed the plan announced as part of the government’s recent mini-budget, to introduce a new scheme allowing international visitors to reclaim the cost of VAT on their purchases.
Hayley Beer-Gamage, CEO of Experience Oxfordshire said, “In the highly competitive global tourism marketplace, retail is a key incentive for travel. It has been a driver for growth in visitor numbers to Oxfordshire over the past decade. Last November, Experience Oxfordshire with sector leaders from across the county wrote to the government advocating for the re-introduction of tax-free shopping for international visitor to the UK. We are delighted that this message has been heard. A modern, digitalised VAT-free shopping scheme will reinforce Britain’s position as a desirable destination for retail tourism. In turn this will ensure Oxfordshire, with its attractive high streets, world-class shopping centres and range of high-quality ancillary services, fronted by our hospitality sector, will benefit from international visitor expenditure.”
Prior to the pandemic, Oxfordshire attracted 30 million tourists a year who contributed £2.5 billion to the local economy, 10% of the region’s annual GDP and supporting 12% of all jobs across the county (of which the retail industry directly employed 6,000 people and accounted for half a billion pound of expenditure). The Economic Impact Report for Tourism in Oxfordshire, commissioned by Experience Oxfordshire during the pandemic, subsequently showed a 59% decline in the value of tourism (from £2.5billion in 2019 to £1billion) and a substantial decline of 39% in jobs supported by sector (from 42,000 to 25,000).
Dominic Hare, CEO of Blenheim Palace said, “International visitor expenditure makes up a significant part of tourism’s contribution to the Oxfordshire economy. These are uncertain times and businesses continue to need support, just as visitors continue to need incentives to travel. The UK must constantly seek to maintain and improve any competitive advantage, so we are delighted with the proposal for a new VAT-free shopping scheme.”
James Lambert, Deputy Chairman of Value Retail commented, “This announcement will breathe new life into sectors which were particularly hard-hit by the pandemic, and restore this country’s position as one of the world’s leading tourist destinations.
With a global retail presence across three continents we have seen clear evidence that other countries with more competitive systems have enjoyed growth in tourist spending at the UK’s expense.
Releasing the UK from our status as the only country in Europe not to offer tax-free shopping to tourists will help grow the economy and be a boost for retailers, hotels and restaurants of all sizes across the whole of the UK.”
