The boss of travel money exchange business Travelex is the latest boss to join the chorus against the tourist tax, telling the Standard that he believes scrapping it would lead to greater receipts for the Treasury.
It comes as the global money business, which has locations at Selfidges, Westfield shopping centre and Heathrow Airport, reported profits soared by 156% to £58.8 million. Revenues grew by 24% to £534.2 million.
The results suggest that the decline in cash in the post-pandemic era has been less severe than many expected, at least for international travellers.
Boss Richard Wazacz told the Standard: “When you travel, people are naturally nervous. They want to be confident that wherever they are they have enough money to pay for meals, pay for tips, get to the hotel.”
Wazacz added that in Europe and the Middle East, sales are already ahead of pre-pandemic levels.
But he said that while the rebound had been strong, there was still room for further growth in London. Many in the luxury retail sector have warned that the removal of VAT-free shopping for international travellers, often called the ‘tourist tax’, has been holding London back when compared with rivals on the continent. Wazacz says he believed that scrapping the tax would create enough new economic activity to offset the loss in revenues that would come from its removal.
“We think that’d be a great thing for the London economy; it would boost retailers,” he said. “I think net it will be good for UK plc.
“My belief is that the growth in retail will more than offset the amount the treasury collects. It will create jobs and it will drive growth.”
Earlier this week, Watches of Switzerland said the tax was holding back its sales. Industry experts believe this week in particular could be a large missed opportunity, with sales over the Chinese New Year weekend expected to be lower because of the lack of VAT-free shopping.
