Since the Olympics, the UK has benefited from a significant boost in tourism which in turn has allowed businesses nationwide to post rising profits. The retail industry in particular has felt the positive repercussions with visitors from China in particular helping to boost revenues and improve business confidence.
In the past 10 years, the number of Chinese tourists choosing the UK as their destination of choice has risen by a staggering 800 per cent thanks to a greater availability of affordable flights and the growing middle class in the Asian country.
As a result of this increase in wealth, Chinese tourists can now afford to spend more when visiting the UK, with the average spend for 2012 equalling £737 per trip – a 50 per cent year on year increase according to WorldPay.
A report by the global payments service says Chinese visitors are encouraged to spend when visiting the UK thanks to the favourable prices on offer here compared to back home. In China luxury goods can be up to 30 per cent more expensive than in the UK, in part due to the price premium which comes into effect when British brands export their goods.
Three core categories tend to play the major roles in the shopping habits of Chinese tourists – 31 per cent bought watches and jewellery on their last trip, 29 per cent enjoy browsing the rails in luxury fashion stores and 23 per cent are drawn to budget-friendly department stores.
Director of Selfridges, Meave Wall, believes that Chinese tourism has contributed significantly to rises in revenues during the past decade.
She says; “We have seen a significant increase in the footfall of Chinese visitors, and the amount of money they spend, particularly on our luxury brands.”
Yet despite these figures, there are many who believe that the UK could be missing out on around £1.2 billion of Chinese tourism spending each year thanks to an overly complicated and expensive Visa system. The UK Chinese Visa Allowance (UKCVA) is a coalition of retailers and business groups currently lobbying the government to make changes to the present system in order to make the process of acquiring a Visa much easier for tourists.
Their arguments are backed up by a recent report conducted by retail consultancy Global Blue, which discovered that only 7 per cent of Chinese tourists visiting Europe are able to visit the UK. This is largely because the UK is not part of the Schengen visa programme, which allows Chinese tourists access to 26 European countries.
A spokesman for the Home Office refuted the claims that the UK government does not do enough to welcome Chinese tourists to the country.
He said; “Our Chinese visa system provides an excellent service and these figures demonstrate that Chinese tourists are increasingly choosing the UK as a holiday destination.
“We will continue to make further improvements wherever appropriate but we will not compromise the security of our border.”
At present, London comes second on the list of most valuable destinations for international shoppers, beaten only by fashion capital Paris. However, with the cost of a visa now £200, including fees, there is a real chance visitors will be put off the thought of the UK in future thanks to the large expense – regardless of the savings on luxury items.
Do you think the UK’s visa system must be overhauled in order to support businesses?
