Russian tourist spend in UK falls in February
New data has revealed a slowdown in spending from Russian shoppers visiting the UK as political unrest in the Ukraine and the effects of a weakening economy leave Russians disinclined to travel.
The study by Global Blue shows that tax free spend by Russian shoppers decreased 17% year-on-year in February and that Russia slipped down one place to be the fourth highest spending globe shopper market, behind China, Middle East and Nigeria.
Russians are among the top five biggest-spending tourists in the UK, with shoppers spending an average of £669 per transaction, according to Global Blue.
In the year to date, Russian spend in the UK has decreased 16% year-on-year as the ongoing dispute between Russia and Ukraine continues.
Never Miss a Retail Update!Gordon Clark, UK country manager of Global Blue, said: “The unstable situation in Russia has shown its affect on tourism spend this year as the weakening economy leaves shoppers disinclined to travel. However, Russia is still one of the top globe shopper markets in the UK as high net worth individuals are drawn to the UK’s extensive offer of luxury brands, so businesses should renew their emphasis on strategies to entice these individuals and encourage high level spend.”
In 2013, Global Blue Tax Free Spend Index figures showed that Russian spend increased 16% year-on- year overall with average spend per transaction up 4%.
The firm, which processes 80% of all tax-free shopping in the UK, said an increasing number of businesses are introducing Russian speaking staff and marketing materials, Tax Free services, private opening hours and cultural training in a bid to attract the high spending tourists.
Global Blue found there was a 10% overall increase in tax fee spending in the UK in February compared to the same month last year. Spend by Middle Eastern shoppers was up 31% and Chinese spend rose by 23% as the two groups continued to represent the highest proportion of international sales.
Meanwhile, South East Asian nations saw further spend growth in the month with spend by shoppers from Hong Kong up by 23% and spend from Malaysia and Singapore both rising by 6%.
