Worldwide tax-free shopping is growing rapidly in Continental Europe and Asia Pacific, according to data from Global Blue, a Swiss company that refunds taxes on tourism purchases. In August 2024, issued sales in stores increased by 17 pc year over year.

According to Global Blue’s survey, in Continental Europe the issued sales in store growth rate increased by 10 pc in August 2024 versus last year. 

This growth was led by an 8 pc increase in the number of shoppers and a 2 pc uptick in the average spend per shopper.

The survey says that regarding origin markets, the positive momentum in issued sales in store growth is evident across most nationalities. 

Mainland Chinese tax-free spend led with 25 pc surge compared to last year. 

While tax-free spend by travellers from the United States was positively influenced by the Paris Olympic Games with 18 pc increase, it was the opposite for GCC shoppers, who experienced a growth decline rate of 1 pc compared to last year.

When examining destination markets, August showed a strong performance in Spain at 23 pc rise and Italy at 12 pc increase, while it displayed a moderate performance in Germany at 3 pc uptick and France at 3 pc rise too, reflecting the contrasting impact of the Olympic Games by nationality.

A Slowdown of the Hyper Growth Tax Free Spend in Asia Pacific

The survey says that in Asia Pacific, the issued sales in store growth remains strong, reaching 37 pc rise in August 2024, led by a 38 pc increase in the number of shoppers and a marginal 1pc decrease in the average spend per shopper.

According to the report, growth rate in August softened compared to the hyper-growth of 94 pc over the last three months. This is due to a higher basis of comparison, as well as the recent strengthening of the Yen against all major currencies, particularly against the Chinese RMB.

Regarding origin markets, the positive momentum in issued sales in store growth continued across all nationalities. Mainland Chinese tax free spend led with 49 pc surge boosted by an increase of 72 pc in Mainland Chinese shoppers. 

Meanwhile, North-East Asia tax free spend grew by 37 pc versus last year while Hong Kong and Taiwan experienced a 34 pc growth rate.

When examining destination markets, August showed a positive performance across destinations, with Japan at 50 pc, South Korea at 43 pc, and Singapore at 4 pc increase respectively.