In with the Brics: spending spree from tourists boosts capital shops

New research reveals that Chinese tourists are the biggest drivers of growth and now account for nearly a third of all tax-free spending in the Scottish capital.

Brazilian and Russian shoppers have also been rapidly increasing their presence in the city, while visitors from Thailand remain the highest rollers, spending on average £665 per transaction, a year-on-year rise of 6 per cent.

Global Blue, which operates tax-free shopping services across thousands of UK outlets, said parts of Edinburgh such as George Street and Multrees Walk – home to several luxury brands – were able to rival London for top-end shopping.

Its research also highlights “significant investment” in the city centre, and the opening of flagship branches of fashion chains New Look and Primark as a further draw.

Richard Brown, vice-president of Global Blue UK, said: “Long regarded as a prime cultural tourist destination, Edinburgh is at last gaining recognition for its shopping offering. Tourists are discovering luxury on George Street, Edinburgh’s equivalent of London’s Bond Street, and popular high street brands on Princes Street.”

He added: “Many of these brands may be available in their home countries but there is a lot of kudos attached to buying them in the likes of London or Edinburgh. And the VAT saving is substantial.”

The report compares tax-free spending in the capital during March with figures from a year earlier. It shows that total sales to Chinese visitors leapt by 139 per cent, giving them a near-30 per cent slice of the duty-free market. The average spend was £331 per transaction, up 23 per cent on March 2011.

Thai tourists increased their overall spend by 225 per cent and the country can now claim second place, with a 14 per cent share of the overall tax-free market. Taiwan is in third position with a 12 per cent chunk of the spend, while Russia sits in fourth place at 7 per cent.

In contrast, overall spending among visitors from the US fell by almost a fifth, with an average spend per transaction of £217 – a year-on-year fall of 40 per cent.

The research notes that premium brands such as Brooks Brothers, Church’s shoes and Louis Vuitton are attractive to Chinese and Russian shoppers. More mainstream high-street brands including Topshop are said to appeal to Brazilian visitors.

Brown said he was expecting to see a strong upturn in sales across the year, though there may be “some negative Olympic impact”, with tourists visiting London during the period deciding not to travel to other UK destinations as well.

Manuela Calchini, VisitScotland Edinburgh and Lothians regional director, said: “Edinburgh is synonymous around the world as a Mecca for tourism, so it is little wonder key emerging markets are making the trip.

“This research clearly highlights that not only is Edinburgh a cultural and historical hub, it also has excellent shopping credentials that are proving a huge hit with the overseas market of every budget from high street to luxury.”

The “Bric” acronym refers to Brazil, Russia, India and China – four nations deemed to be at a similar stage of advanced economic development.

Global Blue handles some 60,000 transactions each day across 40 markets.