South Warwickshire tourism chiefs urge U-turn on VAT-free shopping ban

Tourism leaders in south Warwickshire are urging the government to capitalise on the region’s strong recovery from the Covid pandemic by making a U-turn on the existing ban on VAT-free shopping for overseas visitors.

Ahead of the Budget in March, the Chancellor has written to the Office for Budget Responsibility to review bringing back VAT-free shopping for international visitors after it was scrapped in 2021.

The Chancellor’s move was made following industry-wide condemnation that the policy is putting many British tourism businesses at a disadvantage to other EU countries, who currently offer VAT-free shopping for overseas visitors.

It comes as a recent tourism impact assessment, conducted on behalf of south Warwickshire’s tourism body Shakespeare’s England by The Research Solution, found that there was a 317 per cent rise in overnight stays (192,000), and a 373 per cent rise in spending (£90m) by overseas visitors in 2022 versus the previous year.

Darren Tosh, Operations and Marketing Director at Shakespeare’s England, said: “The reintroduction of VAT-free shopping has the potential to act as a catalyst for growth for our tourism businesses – and would be a real shot in the arm for the sector across our region ahead of the peak summer trading season.

“As a tourism body we have already been putting south Warwickshire on the world stage at key tourism shows in India and China, and we know first-hand how important the shopping experience is alongside sampling the rich culture and heritage we have to offer – so VAT-free shopping has potential to unlock further growth.

“The region’s tourism scene is bouncing back strongly from the pandemic, as shown by the data, so there never has been a better time to be introducing measures that would encourage even more international visitors – particularly to some of our key shopping destinations such as Bell Court in Stratford-upon-Avon, the chic boutiques of regal Leamington Spa and independent shops in medieval Warwick.”

For more information about Shakespeare’s England visit www.shakespeares-england.co.uk.