Middle Eastern tourists are expected to have a significant impact on the luxury retail sector in the UK this summer, particularly when it comes to boosting sales of British brands such as Burberry. Global Blue, a tax-free payments facilitator, predicts a 16% increase in transactions by visitors from Gulf countries during the peak holiday season stretching from July to September. This surge follows a 17% uptick in transactions from these states over the previous three months, attributed in part to the strength of their own currencies against the weakened pound.
In 2018, the UK welcomed nearly 40 million visitors from Gulf Cooperation Council (GCC) countries, solidifying the Middle East as the UK’s second most valuable market. Visitors from GCC countries represent over a quarter of the total tax-free shopping spend in Britain, with Qatar, the UAE, Kuwait, and Saudi Arabia each contributing significantly to the market. On average, Middle Eastern visitors are projected to spend over £1,000 while visiting the UK this summer, marking a 4% increase from the previous year.
Among the GCC nations, Saudi Arabia has seen the fastest growth, with a 28% increase in transactions per visit. The UK has become a favored destination for many Saudi Arabian tourists, with Global Blue data indicating that 38% of transactions from GCC visitors are made on British brands such as Burberry and Mulberry, as well as luxury department stores like Harrods and Selfridges. The fashion and clothing sector accounts for 50% of purchases, followed by leather goods at 17%, shoes at 5%, and jewelry at 4%.
As Ramadan occurred earlier in 2019, UK retail partners have intensified their efforts to attract GCC visitors during the post-Ramadan shopping period, offering exclusive deals and rewards throughout the summer. Flagship stores like Harrods, Selfridges, and Fenwick are rolling out premium services to cater to high-spending shoppers from the Middle East. Retailers are going the extra mile to capture a significant portion of the increasing market of Middle Eastern tourists seeking a luxury shopping experience in the UK.
Sources:
1. Global Blue
2. VisitBritain
