China’s ‘Tourist Tax’ Hit British Economy with £1.3 Billion Loss

Recent research revealed that Britain lost out on £1.3 billion in spending by Chinese visitors last year due to the “tourist tax”. The removal of tax-free shopping for tourists, including those from China, resulted in a substantial decline in overall visitor expenditures in the UK. Before the scheme’s cancellation in 2021, non-EU tourists could receive a VAT refund on purchases, making items 20% cheaper. The lack of this incentive contributed to the country experiencing only 82% of pre-Covid Chinese visitor levels in the past year, hampering the UK’s post-pandemic recovery. Comparatively, Spanish Chinese visitor numbers reached 121% of pre-Covid levels,…