Scrap hated tourist tax to cash in on visiting music lovers, say campaigners
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Millions of music fans are travelling to Britain for concerts but the economy is missing out on their spending due to the hated tourist tax, campaigners have said.
Before the VAT-free shopping initiative was axed in 2021, tourists from outside the EU could receive a tax refund on purchases made in the UK.
Instead of spending money in Britain, tourists are currently flocking to Paris, Milan and Berlin, leaving these economies to reap the rewards at the UK's expense.
And now London is unable to fully cash in as major music artists attract visitors from abroad.
The Oasis reunion tour and Dua Lipa’s shows helped boost the total number of music tourists in the UK by 4.8 per cent from 23.5million in 2024 to the new record of 24.7 million last year.
And artists are increasingly picking London for a string of residency-style shows, as opposed to visiting different cities across Europe.
Pop stars including Harry Styles have chosen London for multiple tour dates
Ros Morgan, chief executive of Heart of London Business Alliance (Holba), said: ‘Major music residencies featuring artists such as Harry Styles and Ariana Grande represent a huge opportunity for London and the wider UK economy, bringing international visitors who spend money not just on tickets and hotels, but across our shops, restaurants and attractions.’
It comes as tourism bosses have warned a proposed overnight visitor levy will make the UK less competitive.
Morgan added: ‘The UK should be making it easier, not more expensive, for international visitors to come here, enjoy our world-class entertainment and spend money in our economy. Otherwise, fans could increasingly follow artists such as Céline Dion to Paris or elsewhere, taking their spending with them.
Together, these measures risk depressing tourist spending and making London a less attractive destination for international fans.’
Bringing the scheme back would generate billions in extra economic output and deliver a £2.6billion net gain to the Treasury's coffers, according to a new report by the Centre for Economics and Business Research, commissioned by Holba.
New West End Company chief executive Dee Corsi added: ‘Tourists travel from across the country and the globe to see their favourite artists perform in London, often booking their concert tickets first and then planning an overnight or multi-day visit to elongate their trip, going on to spend in our shops, restaurants and hotels.’
The British Summer Time Festival in Hyde Park helped to boost footfall on Oxford Street by as much as 15pc compared to last year, according to Corsi.
‘A shopping incentive scheme would help translate that footfall into even greater sales, supporting our high streets and the UK economy,’ she said.
It comes as Parisian businesses have said they are set to reap the rewards from Céline Dion's 16-show residency.
Galeries Lafayette boss Arthur Lemoine said the shows will have a ‘significant positive impact’ on sales at his department store.
The Mail has been campaigning for the Government to 'Scrap the Tourist Tax' to help boost all avenues of the visitor economy – from factories producing luxury goods to tearooms in countryside tourist hotspots.
More than 500 firms have backed the campaign.
Big names, including Giorgio Armani, Pernod Ricard and the owner of the Westfield shopping centres all argue that the cost of such refunds is outweighed by the enormous benefits of encouraging more visitors to Britain.
It would also be a chance for the country to cash in on a new market created by Brexit. If restored, the scheme would be extended to EU visitors as well as those from outside the EU. This would make Britain the only big European destination to offer VAT-free shopping to both markets.
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